CAN DIFFERENT ENERGY-RESOURCES BE ADDED OR COMPARED

The practice of directly adding and comparing Btus of energy from diff erent energy resources may yield misleading conclusions in economic an d policy studies. Economic aggregation indices (e.g., Divisia indices) are preferable to a heat-content index. Under some circumstances, an energy aggregate may fail to exist. We review the conditions necessary for aggregation or comparison, contrast different approaches, describ e the form-value attributes that affect the relative economic values o f different energy resources, and derive the microeconomic foundations of the Divisia approach. The development of an energy-technology Divi sia aggregate is suggested when separability between energy and other inputs is not present. Copyright (C) 1996 Elsevier Science Limited.