Energy consumption patterns in the manufacturing sector of Tanzania.

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University of Dar es Salaam
The 1973/74 and 1978/79 world oil price increases have been blamed for the turbulence of economies the world over. In Tanzania, this crisis has had both direct and indirect effects. First, a large chunk of the county's export earnings are used for oil importation thus, adversely affecting the ability to pay for other imported intermediate inputs due to foreign exchange shortages. Second, intermediate inputs' shortages result into excess capacity in production. Thirdly, the shortage and unreliably inconsistent supply of energy inputs in production and transport activities further exacerbate the already faltering economic activities. The empirical investigation of energy use pattern and its influence on production in manufacturing activities in Tanzania between 1970 and 1988, has been done using simple statistical ratios, parametric translog regression analyses (Both equilibrium and disequilibrium setting), and non-parametric Divisia index and short run industry production function graphical approaches. The analysis of three digit manufacturing activities, has brought to light the following findings: i) pottery, china, glass & non-metallic products category were the most energy intensive activities followed by petroleum refinery & other chemical products, wood & wood products and paper & paper products, ii) energy intensity trends were closely linked to energy price movements iii) energy use changes had a declining trend iv) both energy intensity and output effect influenced energy consumption trend v) existence of substitutability possibilities between energy inputs and other production inputs and also among energy inputs, with the exception of a complementary relationship between electricity and labour vi) disembodied technical change has been found to be input saving for energy inputs and input using for capital and labour, vii) productivity has been shown to have been declining, viii) capacity utilisation and productivity indicate a positive relationship. Findings from the cement industry case study, revealed labour saving and energy using factor biases to have taken place. The above findings go on to confirm that, energy intensive manufacturing activities, particularly large scale ones, were relatively more adversely affected by the intermediate input shortages which resulted into excess capacity. The conclusion is that, energy prices, availability and utilisation, influenced energy inputs' use pattern and therefore production activities' performance during the sample period.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HC371.T3K4)
Industries, Energy consumption, Tanzania
Kulindwa, K. (1994). Energy consumption patterns in the manufacturing sector of Tanzania. Master dissertation, University of Dar es Salaam.