The scope for fuel substitution in manufacturing industries: A case study of Chile and Colombia

Diana L. Moss, James R. Tybout

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)49-74
Number of pages26
JournalWorld Bank Economic Review
Volume8
Issue number1
DOIs
StatePublished - Jan 1 1994

All Science Journal Classification (ASJC) codes

  • Accounting
  • Development
  • Finance
  • Economics and Econometrics

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