Klein is a brave and passionate writer who always deserves to be heard, and this is a powerful and urgent book that anyone who cares about climate change will want to read. Yet it is hard to resist the conclusion that she shrinks from facing the true scale of the problem. When I read The Shock Doctrine (Guardian review headline: “The end of the world as we know it”), I was unconvinced that corporate and political elites understood what they were doing in promoting the wildly leveraged capitalism of that time, which was already beginning to implode. The idea that corporate elites are in charge of the world is even less convincing today. The neoliberal order has recovered, and in some countries even achieved a spurious kind of stability, but only at the cost of worsening global conflicts.
Hans De Keulenaer on 25 Aug 14"We use a translog cost function to model production in the Irish manufacturing sector over the period from 1991 to 2009. We estimate both own- and cross-price elasticities and Morishima elasticities of substitution between capital, labour, materials and energy. We find that capital and energy are substitutes in the production process. Across all firms we find that a 1% rise in the price of energy is associated with an increase of 0.04% in the demand for capital. The Morishima elasticities, which reflect the technological substitution potential, indicate that a 1% increase in the price of energy causes the capital/energy input ratio to increase by 1.5%. The demand for capital in energy-intensive firms is more responsive to increases in energy prices, while it is less responsive in foreign-owned firms. We also observe a sharp decline in firms' responsiveness in the first half of the sample period."
