Energy-substitution in the paper industry in Brazil: A translog function approach

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1988

OSTI ID:7199423

Verillo, J

Unlike the majority of studies, this study focuses at the micro level instead of the aggregate. The method employed involves the use of econometric techniques to estimate translog cost and production functions, and the estimation of the Allen Elasticities of Substitution (AES) from the coefficients. The data used come from firms in the paper industry of Brazil during January, 1982 to December, 1987. When using aggregated data, findings concerning energy-capital substitution are often controversial. Some authors find substitutability, while others find complementarity between energy and capital. This study found that this ambiguity also appears at the micro level. Even when the firms belong to the same industry, two inputs can be complements in one firm and substitutes in another. The basic findings are: (1) Energy demand is found to be responsive to price changes, (2) Fossil fuels and biomass are substitutes, (3) Biomass and capital are substitutes, (4) Fossil fuels and hydroelectricity are complements, (5) Hydroelectricity and capital are complements, (6) Labor and materials are substitutes, and (7) Capital and labor are substitutes. The other elasticities are ambiguous, varying from firm to firm, or not significant at the 5% level.

• Research Organization: Michigan State Univ., East Lansing, MI (USA)
• OSTI ID: 7199423
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320301* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Energy Sources
BRAZIL
CAPITAL
DEVELOPING COUNTRIES
ECONOMIC ELASTICITY
ENERGY ANALYSIS
ENERGY SUBSTITUTION
INDUSTRY
LABOR
LATIN AMERICA
PAPER INDUSTRY
SOUTH AMERICA
WOOD PRODUCTS INDUSTRY