Economic Analysis of Coal-Fired Cement Kilns

Fuel problems of two lesser developed countries (LDC 's) are presented. In particular, the paper reviews cement technology and the fuel-intensive cement industries of the Philippines and South Korea. Based on current financial and cost data, analyses are presented of the proposed substitution of high-sulfur and slow-sulfur American coal in place of fuel oil. The analyses show that economic substitution of coal for oil is not only based on relative prices for coal and oil, as expected, but also to be an inverse function of degree of intensity of energy use, and a direct function of financial incentives such as accelerated depreciation, taxes on the savings made by the use of coal, and cost of capital.