ELECTRICITY SUBSTITUTION - SOME LOCAL INDUSTRIAL EVIDENCE

Substitution elasticities between electricity, production and non-prod uction labor, and capital in Alabama's textiles, paper, chemicals and primary metals industries are estimated. There is generally weak subst itution between inputs and declining shares of production labor. Texti les exhibit a trend toward more capital intensive techniques. All outp uts are biased away from electricity. Electricity demand is price inel astic, which implies regulatory constraints are binding. (C) 1998 Else vier Science B.V. All rights reserved.