Energy and resource substitution in the US iron and steel industry

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1987

OSTI ID:5006336

Drylis, I E

The thesis examines input utilization and input substitution in the US iron and steel industry (SIC 331) during the period 1958-81. To investigate the pattern of input substitution in the industry, two alternative translog cost functions are specified under both the non-constant returns to scale (non-CRS) and the constant returns to scale (CRS) hypotheses. Each cost function, together with the corresponding share equations, is estimated with the iterative seemingly unrelated regression technique; inputs included in the estimation are labor, capital, energy, metal, and a composite other materials input. Estimation results imply relatively low substitution possibilities among inputs in the industry. A major exception in this pattern is the finding of a complementarity relationship between capital and energy. In general, estimation results under the non-CRS hypothesis imply greater input substitution possibilities than results under the CRS hypothesis. The degree of returns to scale in the industry is estimated as 1.44.

• Research Organization: Southern Illinois Univ., Carbondale (USA)
• OSTI ID: 5006336
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
291000 -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320301* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Energy Sources
ALLOYS
CAPITAL
ELEMENTS
ENERGY SUBSTITUTION
INDUSTRY
INSTITUTIONAL FACTORS
IRON
IRON ALLOYS
IRON BASE ALLOYS
LABOR
MATERIAL SUBSTITUTION
METAL INDUSTRY
METALS
STEELS
TRANSITION ELEMENTS