<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This contribution aims to examine the relationship between the transport sector and the macroeconomy, particularly in fossil energy use, capital and labour relations. The authors have investigated the transport related fossil fuel consumption 2003 -2010 in a macroeconomic context in Hungary and Germany. The Cobb-Douglas type of production function could be justified empirically, while originating from the general CES (Constant Elasticity of Substitution) production function. Furthermore, as a policy implication, the results suggest that a solution for the for the reduction of anthropogenic CO2 driven by the combustion of fossil fuels presupposes technological innovation to reach emission reduction targets. Other measures, such as increasing the fossil fuel price by levying taxes, would consequently lead to an undesirable GDP decline.</p></abstract>

This contribution aims to examine the relationship between the transport sector and the macroeconomy, particularly in fossil energy use, capital and labour relations. The authors have investigated the transport related fossil fuel consumption 2003 -2010 in a macroeconomic context in Hungary and Germany. The Cobb-Douglas type of production function could be justified empirically, while originating from the general CES (Constant Elasticity of Substitution) production function. Furthermore, as a policy implication, the results suggest that a solution for the for the reduction of anthropogenic CO2 driven by the combustion of fossil fuels presupposes technological innovation to reach emission reduction targets. Other measures, such as increasing the fossil fuel price by levying taxes, would consequently lead to an undesirable GDP decline.

Usage of Production Functions in the Comparative Analysis of Transport Related Fuel Consumption

Budapest University of Technology and Economics Departtment of Transport Economics, H-1111, Budapest, Muegyetemrkp 3

Budapest University of Technology and Economics, Departtment of Transport Economics, H-1111, Budapest, Muegyetemrkp. 3

Erfurt University of Applied Sciences, InstitutVerkehr und Raum, AltonaerStraße 25, D - 99085 Erfurt; Germany

Transport and Telecommunication Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This contribution aims to examine the relationship between the transport sector and the macroeconomy, particularly in fossil energy use, capital and labour...

Usage of Production Functions in the Comparative Analysis of Transport Related Fuel Consumption

Published Online: Dec 19, 2014

Page range: 292 - 298

DOI: https://doi.org/10.2478/ttj-2014-0025

© 2014 Transport and Telecommunication Institute

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.