This project replicates the empirical results of Papageorgiou, Saam & Schulte (2017), “Substitution Between Clean and Dirty Energy Inputs: A Macroeconomic Perspective.” The study estimates the elasticity of substitution between clean and dirty energy inputs using a panel of countries and industries. The replication reconstructs the authors’ data-processing and estimation pipeline in R, reproducing their CES nonlinear least-squares (NLS) and Kmenta approximation results for the electricity sector and nonenergy industries. It also implements the authors’ first-difference specifications, alternative capital measures, fixed effects, and clustered bootstrap inference, followed by systematic Stata-versus-R validation of coefficients, standard errors, and sample sizes. The main objective is to verify whether the paper’s central finding—that clean and dirty energy inputs are substitutes with an elasticity of substitution greater than one—can be reproduced using an independent R implementation.

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