I was reading the paper by Berndt and Wood (1975), "Technology, Prices, and the Derived Demand for Energy". It was an interesting paper to read but there has not been anything done on this in nearly 40 years. I was able to track down the data (part of the data is in the paper) and played with their data. I also used the updated data from KLEMS from 1947 to 2014 because I am curious if the elasticities for energy substitutability, etc, have changed over time. The econometric specification used 3SLS which is not as robust as GMM.
What would be the value in exploring this topic? What are the pitfalls in the role of technology in US manufacturing? Capital has changed a lot since Berndt and Wood (1975) so it is possible that the updated KLEMS data could have harmonized it? Maybe or maybe not.