Examining the Interplay of Labour Productivity Policies and Industrial-Energy-Environmental Policy Goals

Table 2

Sensitivity analysis of the long-run effects of a 1.5% increase in labour productivity given as % changes from base year. Variation in the elasticities of substitution in production and consumption, σ, with export elasticity of demand, η, equal to 1.

	Armington ()
σ	0.30	0.70	1.00	1.30	2.00	2.50	3.00	3.50
Gross domestic product (GDP)	1.00	1.02	1.04	1.05	1.06	1.07	1.07	1.07
Consumer price index (CPI)	-1.31	-1.36	-1.39	-1.43	-1.49	-1.54	-1.58	-1.61
Total employment	-0.37	-0.14	0.03	0.19	0.56	0.81	1.06	1.31
Nominal gross wage	-1.31	-1.36	-1.39	-1.43	-1.49	-1.54	-1.58	-1.61
Households consumption	-0.14	-0.08	-0.04	-0.01	0.07	0.13	0.18	0.23
Total imports	-1.13	-1.22	-1.28	-1.33	-1.45	-1.54	-1.62	-1.69
Total exports	1.17	1.23	1.27	1.31	1.38	1.43	1.48	1.52
Total energy use	0.39	0.24	0.17	0.13	0.08	0.08	0.08	0.09
Energy use in production	0.64	0.46	0.37	0.31	0.21	0.17	0.14	0.11
Household energy consumption	-0.31	-0.39	-0.42	-0.43	-0.42	-0.39	-0.34	-0.30
Energy output prices	-0.88	-1.00	-1.08	-1.14	-1.27	-1.34	-1.41	-1.46