Discussion Papers no. 318

Application on Norwegian pulp and paper industries

Energy flexibility and technological progress with multioutput production

We analyse the energy flexibility and technological change in the pulp and paper industry by applying a multioutput production function. The pulp and paper industry mostly consists of heterogeneous firms. They produce a wide range of different goods with different technologies. We take the heterogeneity into consideration in two ways. First, we disaggregate the industry into three sub-sectors according to their products. Second, in each sub-sector our model accounts for the heterogeneity between firms. We apply a specific flexible cost function, which makes sure that the curvature conditions hold. In our model, the energy flexibility occurs in different ways. On one hand producers may invest in technologies, which make them able to switch between different energy sources. On the other hand they can change their output mix towards less energy intensive products when the energy prices increase.

Om publikasjonen

Tittel

Energy flexibility and technological progress with multioutput production. Application on Norwegian pulp and paper industries

Ansvarlig

Øystein Døhl

Serie og -nummer

Discussion Papers no. 318

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

38

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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