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Technology and Energy Use Before, During, and After OPEC: The U.S. Portland Cement Industry

Charles A. Capone, Jr. and Kenneth G. Elzinga

Year: 1987
Volume: Volume 8
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No3-5
View Abstract

For 12 years analysts have watched industries respond to increased energy prices. In particular, there has been an extensive effort to measure the substitutability of inputs in production, much of which has focused on energy and capital. We may now be at a point where the relevant question is, have firms increased the substitutability of energy with other inputs by what they have done these past 12 years, or will they be caught unawares as the current drop in oil prices precipitates a fall in the market prices of all energy sources? Will we see firm production moving back toward a more energy-intensive process either in the short run or the long run?

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