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

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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.

Suggested Citation

  • Thomas Sterner, 1990. "Energy Efficiency and Capital Embodied Technical Change: The Case of Mexican Cement Manufacturing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 155-167.
    • Handle: RePEc:aen:journl:1990v11-02-a09
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    Cited by:

    1. Pablo Cotler, 2020. "Does it pay to cooperate? The case of cooperatives in the Mexican manufacturing sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 497-517, December.
    2. Lennox, James A. & Witajewski-Baltvilks, Jan, 2017. "Directed technical change with capital-embodied technologies: Implications for climate policy," Energy Economics, Elsevier, vol. 67(C), pages 400-409.
    3. 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.
    4. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 873-937, Elsevier.
    5. Popp, David C., 2001. "The effect of new technology on energy consumption," Resource and Energy Economics, Elsevier, vol. 23(3), pages 215-239, July.
    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. 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.
    8. Khanna, Madhu & Zilberman, David, 1997. "Incentives, precision technology and environmental protection," Ecological Economics, Elsevier, vol. 23(1), pages 25-43, October.
    9. Bacon, Robert, 1992. "Measuring the possibilities of interfuel substitution," Policy Research Working Paper Series 1031, The World Bank.
    10. 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.
    11. 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.
    12. Gallagher, Kevin P. & Aguayo, Francisco, 2003. "Economic Reform, Energy, and Development: The Case of Mexican Manufacturing," Working Papers 15575, Tufts University, Global Development and Environment Institute.
    13. Rajesh Sharma & Pradeep Kautish & Dhyani Mehta, 2024. "Determining Energy Consumption Function under Nonlinearity and Structural Break in India: An Empirical Investigation," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 22(2), pages 339-363, June.
    14. Zhu, Junming & Niu, Limin & Ruth, Matthias & Shi, Lei, 2018. "Technological Change and Energy Efficiency in Large Chinese Firms," Ecological Economics, Elsevier, vol. 150(C), pages 241-250.

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    JEL classification:

    • F0 - International Economics - - General

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