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Using stochastic frontier analysis, the paper measures the technical efficiency of cement industry of Pakistan. For this purpose, technical efficiency is calculated for 16 cement industries using panel data for the period 2000–2016. Two models are estimated to measure the technical efficiency of cement industry, i.e., the industrial model and the macro-model. In the former model, only industry related variables are used, while in the latter model macroeconomic variables are also used as input variables besides industrial variables. The results indicate that all industrial variables, i.e., capital, labor, raw material, repair and maintenance, energy inputs and advertisement have positive effect on production of cement industry measured by net sales. In macro-model, gross domestic product (GDP) growth and exchange rate have significant positive effect on production. It is found that one percent increase in economic growth will increase cement production by 0.061%. Similarly, one percent devaluation in exchange rate will bring 0.855% increase in cement production. The results show that there is 48.4% efficiency in cement industry of Pakistan, which indicates that cement industry in Pakistan is inefficient by 51.6%. It implies that there is a need to improve the efficiency of cement industry. Further, macroeconomic variables should be incorporated while examining the efficiency of cement industry in Pakistan.
The cement industry constitutes a major source of air pollution and its environmental impacts have historically raised considerable public concern. This paper presents a health-based economic assessment of reducing particulate and sulfate emissions from a cement industrial complex. The economic valuation of the potential decrease in mortality and morbidity rates due to emissions reduction was conducted using a human capital approach and a cost of illness approach, respectively.
A firm’s performance depends on efficient management of economic resources. Performance is usually a function of firm-specific economic factors and macroeconomic factors. In other words, an efficient allocation, management and manipulation of these factors is required to enhance profitability. This study attempts to identify some factors to understand how and to what extent these factors influence the profitability of the Indian cement industry. Seven hypotheses were framed. Panel data of 146 firms were gathered over a period of 22 years, spanning from 1996 to 2017. Thereafter, a Fixed Effect Regression (FER) model was fitted to the data. Results suggested that both firm-specific (e.g. size of firm; age of firm; fixed asset turnover) and macroeconomic variables (e.g. GDP; inflation; export intensity) made a significant impact on profitability of this industry. The findings of this study should assist managers as well as policy makers to frame sustainable policies of this mature industry. This research fulfills a need for a study that shows the degree of contribution of firm-specific and macroeconomic factors to profitability of the Indian cement industry.
Over the past 30 years, China’s cement industry has experienced rapid development. In this study the authors estimate the emissions trend, emissions control policies, and costs of the policies in China’s cement industry under various economic growth scenarios. First, the authors develop a bottom-up energy system — multi-pollutant abatement planning (MAP) model for China’s cement industry based on the existing productivity, a set of retrofitting options and new investments, alternative fuels, and various available emission control technologies. Second, the authors identify key drivers of cement demand to develop scenarios for future cement demand (2012–2030) and corresponding output peak time under high/low economic growth conditions. Third, the authors consider three scenarios including current policies without carbon control (BAU), moderately low carbon scenario (MLC), and radically low carbon scenario (RLC). The scenarios are being built up with different emission control goals and also compared by costs with estimation of marginal abatement cost curve for cement industry. Finally, based on the estimates the authors suggest a cost-efficient green/low carbon development roadmap for China’s cement sector, considering best available technological options and policy instruments. The study estimates the benefits of co-controlling air pollutants and CO2 emissions, and proposes an innovative mechanism to deal with air pollution and climate change.
China is the largest cement producer worldwide. The cement industry is very energy and raw material intensive and a large emitter of CO2. At the same time, China's waste management system still has many deficiencies, and the waste is an enormous source of pollution. Waste used as alternative fuel and raw material (AFR) in cement kilns can reduce greenhouse gas emissions, save primary resources, and provide a waste treatment service. A large variety of wastes can be co-processed if certain rules are followed and process adaptations are made in order to avoid negative impacts on operation and emissions. In this study, the Life Cycle Assessment (LCA) methodology has been applied to identify the effects of waste co-processing in cement production on greenhouse gas emissions. With substitution rates of 40% for fuels (20% plastics, 10% tires, 10% sugarcane leaves) and 5% for raw materials (blast furnace slag), a reduction in greenhouse gas emissions of 89 kg CO2-equivalents can be achieved per ton cement. From a waste management perspective, AFR co-processing may achieve even larger emission reductions, since the co-processed wastes need not be landfilled or incinerated.