Interfuel substitution and energy consumption in the industrial sector

This paper examines the possibilities for fuel substitution in the industrial sector. First, we determine the total demand for fuel and power for the industrial sector from 1955 to 1972. We then examine fuel substitution possibilities for electricity and eight major fossil fuels consumed by the industrial sector. These are coal, natural gas, residual oil, distillate oil, kerosene, liquefied petroleum gas, still gas and petroleum coke. The analysis includes an estimation of the fuel split equations, the dynamic simulation of the industrial sector demands for fuel and the computation of short- and long-run demand elasticities for each fuel.