Skip to main content

Table 1 Elasticities of substitution used in the model

From: Growth impacts of Swiss steering-based climate policies

 

Nesting

Value

Reference

σ Y, i

Qi and Bi in final goods

0.392 (agr); 0.848 (chm, oil, gas); 0.518 (mch); 0.1 (ele); 1.264 (con); 0.352 (trn); 0.568 (oin); 0.492 (other sectors)

Okagawa and Ban (2008)

κ

Measures level of substitution between xij in intermediate composite

0.75

Bretschger et al. (2011)

ε

Li, j, Ei, j and Vi, j in intermediate goods

0.7 (agr, oil, gas, het); 0.52 (con, oin); 0.58 (chm); 0.56 (trn); 0.66 (ele), 0.67 (mch); 0.4 (other sectors)

van der (2007) and Mohler and Mueller (2012)

σ E

Electricity and fossil energy (Yfos)

1.8

Acemoglu et al. (2012), Bretschger et al. (2011)

σ ele

Electricity generation and distribution

0

Bretschger and Zhang (2017b)

σ egen

Electricity generation groups

10

Sue Wing et al. (2011)

σ cons

Constant electricity generation

1.5

Bretschger and Zhang (2017b)

σ int

Intermittent electricity generation

2

Bosetti et al. (2009)

Ï„

Non-physical capital (IK, i). and physical capital (IP, i)

0.3

Bretschger et al. (2011)

ω

Labor in research (LRi) and investments in R&D (Ri)

0.3

Bretschger et al. (2011)

1/θ

Intertemporal elasticity of substitution in utility

0.6

Hasanov (2007)

σ C

Energy and non-energy in consumption

0.5

ECOPLAN (2007)

σ ce

Electricity and fossil energy in consumption

1.5

Bretschger and Zhang (2017b)

η

Trade Armington

3.2 (agr); 4.6 (mch); 3.8 (ele, oin); 2.9 (other sectors)

Donnelly et al. (2004)

χ

Elasticity of transformation

1

Bretschger et al. (2011)