TY - JOUR
T1 - The role of allocation functions in energy modeling. A review
AU - Smith, V. Kerry
AU - Hill, Lawrence J.
N1 - Funding Information:
*Thanks are due to Knox Lovell, an anonymous referee, and the participants in RTI’s Econometrics Seminar for comments on earlier drafts of this paper. Support for this research was provided by the Energy Information Administration of the Department of Energy under Contract No. W-7405_eng-26. However, the views expressed are entirely those of the authors. ‘The interested reader should consult Kline and Swift (1978) for a comprehensive listing and summary of energy models that have been constructed in various countries.
PY - 1982/12
Y1 - 1982/12
N2 - In the recent past, there has been a proliferation of technical models developed to describe the relationships between and to forecast the levels of energy-related magnitudes. Although the models vary widely in their structural features and objectives, they share at least one common attribute: an energy allocation problem. That is, the models predict an aggregate level of energy usage (often by type) and policy decisions require this prediction be made at a disaggregate level - either with respect to components of the equilibrium quantity demanded or with respect to the quantity supplied. By distinguishing the various problems of disaggregation this paper evaluates four methodological approaches that are commonly utilized in representing the energy allocation problem in the production sector of energy models. These approaches are evaluated in the context of the neoclassical theory of production with special emphasis given to the problems posed by aggregation over both inputs and micro-units and the effects of the formulation of short-run versus long-run dynamics.
AB - In the recent past, there has been a proliferation of technical models developed to describe the relationships between and to forecast the levels of energy-related magnitudes. Although the models vary widely in their structural features and objectives, they share at least one common attribute: an energy allocation problem. That is, the models predict an aggregate level of energy usage (often by type) and policy decisions require this prediction be made at a disaggregate level - either with respect to components of the equilibrium quantity demanded or with respect to the quantity supplied. By distinguishing the various problems of disaggregation this paper evaluates four methodological approaches that are commonly utilized in representing the energy allocation problem in the production sector of energy models. These approaches are evaluated in the context of the neoclassical theory of production with special emphasis given to the problems posed by aggregation over both inputs and micro-units and the effects of the formulation of short-run versus long-run dynamics.
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U2 - 10.1016/0165-0572(82)90007-X
DO - 10.1016/0165-0572(82)90007-X
M3 - Article
AN - SCOPUS:0020291253
SN - 0165-0572
VL - 4
SP - 307
EP - 328
JO - Resources and Energy
JF - Resources and Energy
IS - 4
ER -