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Energy Efficiency and Capital Embodied Technical Change: The Case of Mexican Cement Manufacturing

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  • Thomas Sterner

Abstract

This paper analyses energy efficiency in the Mexican cement industry by studying disaggregated data at the plant and production unit level. A short-run production function is examined to look at the substitution possibilities between labour and energy with given equipment, but these are found to be limited (as expected). Instead, reduction of energy use per unit of output is mainly due to capital embodied technical progress: the most important improvements in plant efficiency are related to investments in new pieces of specific equipment. Average energy intensity of the branch as a whole is, therefore, mainly explained by capacity expansion. Finally, the importance of factor prices and the relevance of our results to other industries are discussed.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 11 (1990)
Issue (Month): Number 2 ()
Pages: 155-167

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Handle: RePEc:aen:journl:1990v11-02-a09

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Cited by:
  1. David Popp, 2003. "Lessons from Patents: Using Patents To Measure Technological Change in Environmental Models," NBER Working Papers 9978, National Bureau of Economic Research, Inc.
  2. Zhang, Chi & May, Michael M. & Heller, Thomas C., 2001. "Impact on global warming of development and structural changes in the electricity sector of Guangdong Province, China," Energy Policy, Elsevier, vol. 29(3), pages 179-203, February.
  3. Okay, Nesrin & Konukman, Alp Er S. & Akman, Ugur, 2009. "Analysis of Innovation and Energy Profiles in the Turkish Manufacturing Sector," MPRA Paper 16344, University Library of Munich, Germany.
  4. Okay, Nesrin & Akman, Ugur, 2010. "Analysis of ESCO activities using country indicators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 2760-2771, December.
  5. David Popp & Richard G. Newell & Adam B. Jaffe, 2009. "Energy, the Environment, and Technological Change," NBER Working Papers 14832, National Bureau of Economic Research, Inc.
  6. Popp, David, 2005. "Lessons from patents: Using patents to measure technological change in environmental models," Ecological Economics, Elsevier, vol. 54(2-3), pages 209-226, August.
  7. Khanna, Madhu & Zilberman, David, 1997. "Incentives, precision technology and environmental protection," Ecological Economics, Elsevier, vol. 23(1), pages 25-43, October.
  8. Popp, David C., 2001. "The effect of new technology on energy consumption," Resource and Energy Economics, Elsevier, vol. 23(3), pages 215-239, July.
  9. Bacon, Robert, 1992. "Measuring the possibilities of interfuel substitution," Policy Research Working Paper Series 1031, The World Bank.

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