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

Diana L. Moss, James R. Tybout

Research output: Chapter in Book/Report/Conference proceedingChapter

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 inj7uence the level and mixture of energy use among manufacturers.

Original languageEnglish (US)
Title of host publicationEnvironmental Taxation in Practice
PublisherTaylor and Francis
Pages309-334
Number of pages26
ISBN (Electronic)9781351939508
ISBN (Print)9780754625940
StatePublished - May 15 2017

All Science Journal Classification (ASJC) codes

  • General Social Sciences

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