MassiveIndustry

(Thu, 22 Oct 2020) This report estimates stochastic frontier energy demand functions with non-public, plant-level data from the U.S. Census Bureau to measure the energy efficiency gap and energy price elasticities in the food processing industry. Estimates of the energy efficiency gap are smaller but empirically more reasonable when using this new estimation methodology. Own-prices are generally inelastic with little evidence of fuel or electricity substitution.