Capital stock rotation, conservation and fuel substitution in the UK industrial steam-raising market

This paper summarizes recent research on economic and technological change in the UK steam boiler stock in the industrial and commercial sectors. Whilst some recent econometric analyses have drawn upon capital stock theory, many hypotheses remain untested against empirical data. The paper draws upon insurance company records to examine the key technical characteristics of the boiler stock. In analysing current and prospective boiler fuel requirements, emphasis is placed on the scope for interfuel substitution (especially towards coal) in this major market over the period to 2000.