Abstract: Because of its flexibility, CES attracts much interest in economic growth and programming models, and the macroeconomics or micro-macro models. This paper focuses on the development, estimating methods of CES production function considering energy as an input. We leave for future research work of relaxing the assumption of constant returns to scale, the introduction of potential input factors, and the generalization method of the optimal nested form of multi-factor production functions.
Abstract: Taking the provincial capital, labor and energy as
inputs, regional GDP as output from 1995 to 2007, the paper
quantifies the vertical and lateral energy saving potential by
introducing the radial adjustment and slack adjustment of DEA. The
results show that by the vertical, the achievement of energy saving in
2007 is better than their respective historical performances. By
horizontal, in 2007 it can be found that Tianjin, Liaoning, Shanghai
and Yunnan do better in energy saving than other provinces. In
national wide, the higher of energy efficiency, the larger of per capita
GDP and the proportion of the tertiary industry in the national
economy, the more open to the outside, the lower the energy saving
potential demonstrates, while the energy endowment has negative
effect on energy saving potential.