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Factor Intensity and Site Geology as Determinants of Returns to Scalein Coal Mining

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  • Boyd, Gale A

Abstract

Increasing returns to scale (RTS) is frequently po stulated as affecting productivity in surface coal mining. However, it is not cl ear whether increased capital intensity or increased output is the relevant phen omenon. A ray-homothetic production function that incorporates the capital labor mix and fixed site geology into the scale elasticity is presented and estimated with a micro (mine level)dataset. The results indicate that higher capital int ensity contributes to higher RTS for some types of capital equipment, but not al l. On the average, increasing RTS was found, with few mines approaching optimal scale. Copyright 1987 by MIT Press.

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  • Boyd, Gale A, 1987. "Factor Intensity and Site Geology as Determinants of Returns to Scalein Coal Mining," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 18-23, February.
    • Handle: RePEc:tpr:restat:v:69:y:1987:i:1:p:18-23
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    Cited by:

    1. Kanayo Ogujiuba & Nancy Stiegler, 2014. "Efficiency of Capital-Labor in Nigeria’s Mining Sector: A Cobb-Douglas Framework," Journal of Economics and Behavioral Studies, AMH International, vol. 6(9), pages 760-770.
    2. Fikru, Mahelet G. & Awuah-Offei, Kwame, 2022. "An economic framework for producing critical minerals as joint products," Resources Policy, Elsevier, vol. 77(C).
    3. Kuby, M. & Xie, Z., 2001. "The effect of restructuring on US coal mining labor productivity, 1980–1995," Energy, Elsevier, vol. 26(11), pages 1015-1030.
    4. Stoker, Thomas M. & Berndt, Ernst R. & Denny Ellerman, A. & Schennach, Susanne M., 2005. "Panel data analysis of U.S. coal productivity," Journal of Econometrics, Elsevier, vol. 127(2), pages 131-164, August.
    5. Yang, Zili, 2019. "Increasing returns to scale in energy-intensive sectors and its implications on climate change modeling," Energy Economics, Elsevier, vol. 83(C), pages 208-216.
    6. Jeremy Smith, 2004. "Productivity Trends in the Coal Mining Industry in Canada," CSLS Research Reports 2004-07, Centre for the Study of Living Standards.
    7. Jeremy Smith, 2004. "Productivity Trends in the Gold Mining Industry in Canada," CSLS Research Reports 2004-08, Centre for the Study of Living Standards.
    8. John E. Tilton, 2013. "Cyclical and Secular Determinants of Productivity in the Copper, Aluminum, Iron Ore, and Coal Industries," Working Papers 2013-11, Colorado School of Mines, Division of Economics and Business.

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