Substitution between energy and classical factor inputs in the Chinese steel sector
China's steel sector is the largest in the world and has been a major driving force behind China's high rate of economic growth. This sector, however, is also a major consumer of energy and, in particular, coal. As a result, the iron and steel sector in China is a major contributor to greenhouse gas emissions and other pollutants. In this article we examine the potential for inter-factor substitution between capital, energy and labor in the Chinese steel sector and find that capital and energy and energy and labor are substitutes. This result suggests that removal of price ceilings on energy would tend to reduce energy use and increase capital intensiveness. While the potential for substitution between energy and labor is less than that between energy and capital, the elasticity of substitution between energy and labor is high compared with previous findings for other countries. This fact suggests that there may be potential for substituting labor for energy, given China's abundance of labor.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 88 (2011)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic|
When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:88:y:2011:i:1:p:361-367. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.