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The Scope for Fuel Substitution in Manufacturing Industries: A Case Study of Chile and Colombia

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  • Moss, Diana L
  • Tybout, James R

Abstract

This article analyzes plant-level panel data from Chile and Colombia to assess how manufacturers might respond to carbon taxes and other policies that induce substitution between clean and dirty fuels. Is producer flexibility linked with sector of activity, capital vintage, or rates of new capital formation? When adjustments in energy use occur, are they accomplished through changes in factor proportions for individual producers, changes in the output shares of producers within an industry, or changes in the relative production levels of different manufacturing industries? Patterns of energy use within and between industries show that fiscal policies can significantly influence the level and mixture of energy use among manufacturers. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Moss, Diana L & Tybout, James R, 1994. "The Scope for Fuel Substitution in Manufacturing Industries: A Case Study of Chile and Colombia," The World Bank Economic Review, World Bank, vol. 8(1), pages 49-74, January.
    • Handle: RePEc:oup:wbecrv:v:8:y:1994:i:1:p:49-74
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    Cited by:

    1. Adenikinju, Adeola F, 1998. "Productivity growth and energy consumption in the Nigerian manufacturing sector: a panel data analysis," Energy Policy, Elsevier, vol. 26(3), pages 199-205, February.
    2. Eskeland, Gunnar S. & Harrison, Ann E., 2003. "Moving to greener pastures? Multinationals and the pollution haven hypothesis," Journal of Development Economics, Elsevier, vol. 70(1), pages 1-23, February.
    3. Ravago, Majah-Leah V. & Fabella, Raul V. & Jandoc, Karl Robert L. & Frias, Renzi G. & Magadia, J. Kathleen P., 2021. "Gauging the market potential for natural gas among Philippine manufacturing firms," Energy, Elsevier, vol. 237(C).
    4. Eskeland, Gunnar S. & Jimenez, Emmanuel & Lili Liu & DEC, 1994. "Energy pricing and air pollution : econometric evidence from manufacturing in Chile and Indonesia," Policy Research Working Paper Series 1323, The World Bank.

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