Energy substitution in the US food-supply industry: an econometric test in multi-factor production function

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1982

OSTI ID:7090124

Kim, D K

This dissertation investigates whether there exists substitutability of complementarity between energy and non-energy inputs in the US food-supply industry - namely, the agricultural, fishing, and food-processing industries. The estimation of technical substitutability between energy (E) and non-energy inputs (K, L, M) has been done in the manufacturing process. All studies have found energy (E)-labor (L) and energy (E)-material (M) are substitutable. But Berndt-Wood and Magnus find energy-capital to be strong complements, while Griffin-Gregory and Pindyck find strong evidence of substitutability. There are three reasons for these conflicting conclusions: First, the complementarity results were based on single-year or time-series data, while the substitutability results are from cross-section investigations. Second, the substitutability results omitted the material input (M) in their model. Finally, substitutability results refer to a capital input as non-labor value-added, while complementarity results refer to a capital input composed only of equipment and structures, called reproducible capital. In order to obtain conclusive evidence, four input factors (K, L, E, M), pooled cross-section time-series data, and reproducible capital as capital input are used in the model for this study. Results show that the PES between capital and energy, between capital and labor, between capital and material, between labor and energy, and between energy and material inputs indicate substitution in all industries. However, it was also found the PES's between labor and material indicate complement only in agriculture and the fishing industry.

• OSTI ID: 7090124
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320301* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Energy Sources
CAPITAL
ECONOMIC ANALYSIS
ECONOMICS
ENERGY SUBSTITUTION
FOOD INDUSTRY
INDUSTRY
LABOR
PRODUCTION