TY - JOUR T1 - Can Capital-Energy Substitution Foster Economic Growth? JF - Land Economics JO - Land Econ SP - 491 LP - 514 DO - 10.3368/le.92.3.491 VL - 92 IS - 3 AU - Itziar Lazkano AU - Linh Pham Y1 - 2016/08/01 UR - http://le.uwpress.org/content/92/3/491.abstract N2 - We study the ease of substitution between energy and other production inputs over time. We first develop a growth model with energy where our general production function allows for a nonconstant elasticity of substitution. Theoretical results show that the ease of substitution between capital and energy increases over time with the energy-capital ratio. Next, using country-level data from 108 countries between 1971 and 2011, we provide empirical evidence for a nonconstant elasticity of substitution between capital and energy. Our results imply that policies that increase the speed of the capital-energy substitution can foster long-run economic growth. (JEL O11, Q43) ER -