28 Sep '11, 7am

Long-Run Trends in the Price of Energy and of Energy Services

Long-Run Trends in the Price of Energy and of Energy Services

This is a guest post by Roger Fouquet , Ikerbasque Research Professor at the Basque Center for Climate Change best known for his book Heat, Power, and Light: Revolutions in Energy Services. The post builds upon Fouquet, R. 2011a. Divergences in the Long Run Trends in the Price of Energy and of Energy Services. Review of Environmental Economics and Policy 5(2). 186-218. His research shows that it is not the price of energy input (depletion) which matters for the economy, but the cost of energy input per unit of output (depletion + technology). Something which seems obvious but is often forgotten in the energy discussion. Also at The Oil Drum we often erroneously talk about effects of the oil price on the economy, and not the cost of an oil or energy service delivered to the economy. The latter not being affected just by energy prices, but by all input costs and their effici...

Full article: http://www.theoildrum.com/node/8371

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