Substituição entre os insumos energéticos na economia brasileira: uma ilustração do uso do modelo translog

Abstract

In this study we ilustrate the use of the translog model by estimating the possibi1ities of substitution among the energy inputs in the Brazilian economy during the period 1973-1981. The main results include: i) the low price elasticity (-0.14) for the demand of oil indicates that increases on the international prices of such an input would result in little reduction of its domestic consumption, resulting in serious consequences to the balance of payment and/or economic recession and domestic inflation; and ii) as oil and eletricity are substitutes (i.e., having positive elasticity of substitution) then increases on the prices of the former would enable the latter to play an increasingly important role in the economic activities of the country.