Energy Use Efficiency in Kenya's Cement Industry
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Date
2016Author
Ndegwa, Veronicah N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The current study sought to quantify energy efficiency in Kenya’s cement subsector and identify
different factors that explain energy efficiency variations across firms. The study adopted a
production-theoretic approach to efficiency measurement. Data Envelopment Analysis and Tobit
regression analysis were the analytical tools employed in the study. Firm-level data from three
firms Bamburi Cement Limited, Athi River Mining, and East African Portland Cement Company
for the period 2004-2014 was used to measure energy use efficiency and to estimate the effect of
various factors on energy efficiency scores. Empirical results from the DEA model established
that these firms could improve their level of energy use efficiency, though the scope for
improving energy use efficiency varied across different firms. The Tobit regression revealed that
only quality of the labour force had a positive and significant effect on energy efficiency score.
The findings of this study are significant to policy makers in charge of promoting energy
efficiency on the demand side. Energy audits, for instance, could be conducted for the inefficient
firms to identify possible areas where they can improve efficiency in energy use.
Publisher
University of Nairobi