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http://dx.doi.org/10.15266/KEREA.2014.23.1.091

Effect of ICT Capital on the Demands for Labor and Energy in Major Industries of Korea, US, and UK  

Kim, Jihyo (International Energy Policy Program(IEPP), Seoul National University)
Heo, Eunnyeong (Department of Energy Systems Engineering, Seoul National University)
Publication Information
Environmental and Resource Economics Review / v.23, no.1, 2014 , pp. 91-132 More about this Journal
Abstract
We investigate the effect of ICT capital on the demands for labor and energy in manufacturing and electricity gas water industries of Korea, US, and UK. Assuming ICT capital, non-ICT capital, labor, electricity, fuel, and material as input factors for manufacturing and ICT capital, non-ICT capital, labor and energy material as input factors for electricity gas water industry, we estimate the Morishima elasticities of substitution. Considering the relative price changes of input factors, ICT capital has substituted labor in manufacturing and electricity water gas industries of the three countries. ICT capital has substituted both electricity and fuel in US and UK manufacturing. Although ICT capital has substituted electricity and fuel each other in Korean manufacturing, ICT capital is unlikely to decrease the demands for electricity and fuel when considering their relative price changes. ICT capital has substituted energy material in electricity gas water industries of the three countries.
Keywords
ICT capital; labor demand; energy demand; Morishima elasticity of substitution;
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