Estimation of Fuel Coefficients of Cement Production: A Fixed-Effects Approach to Nonlinear Regression

Fuel coefficients of cement production—one for each process of production—are estimated by explicitly accounting for the multiple-kiln structure of cement plants. Unobserved heterogeneity across plants is found to be significant. Furthermore, since the estimable model is nonlinear in exogenous variables and parameters, a fixed-effects estimator for nonlinear regression is used to obtain the estimates.