University of California Energy Institute

PWP-029

Technical Efficiency, Production Functions and Conservation Supply Curves

Carl Blumstein and Steven Stoft (U.C. Energy Institute)

In a recent paper H. G. Huntington lays some of the groundwork for more meaningful discussions between economists and technologists on the apparent underinvestment in energy efficiency. In a discussion illustrated by a production function, he points out that the technical efficiency of economic actors should be treated as an empirical question. In PWP-029, Blumstein and Stoft show that Huntington's groundwork can be further extended by observing that there is a close relationship between production functions and conservation supply curves, an analytical tool routinely used by technologists. Blumstein and Stoft show that a conservation supply curve can be obtained from a production function by a simple transformation.