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An Analysis on Shadow Price, Substitutability, and Productivity Growth Effect of Non-Priced Renewable Energy in the Korean Manufacturing Industries
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국내 제조업에 대한 비가격 신재생에너지의 암묵가격, 대체가능성, 생산성 파급효과 분석

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Type
Academic journal
Author
Lee, Myunghun (인하대학교 국제통상학과)
Journal
한국자원경제학회 자원·환경경제연구 자원·환경경제연구 제24권 제4호
Published
2015.1
Pages
727 - 745 (19page)

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An Analysis on Shadow Price, Substitutability, and Productivity Growth Effect of Non-Priced Renewable Energy in the Korean Manufacturing Industries
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This paper analyzes the firms' optimization behavior in response to rising demand for non-priced renewable energy in the manufacturing industries by using an input distance function. The annual estimates of the shadow price of renewable energy is derived and the trend of its shadow price over time is analyzed. The degree of substitution of renewable energy for fossil-fuels is examined. The input-based Malmquist productivity index, defined as a composite of the technical efficiency and technical change measures, is measured. The contribution of renewable energy input growth to the Malmquist index is analyzed. Empirical results indicate that the shadow price of renewable energy declined at an average annual rate of 17% over the period 1992-2012. Substitutability between renewable energy and fossil-fuels was limited. On average, a 1% increase in renewable energy would decrease Malmquist index by 0.04% per year.

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