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Resilience, Adaptability and Transformability: Danish Butter Factories in the Face of Coal Shortages

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Listed:
  • Sharp, Paul
  • Henriques, Sofia Teives
  • Tsoukli, Xanthi
  • Vedel, Christian
Abstract
Economic historians have debated the importance of energy for economic development. Energy economists would argue that energy systems need to be adaptable in the face of shocks. In this light, we consider the case of Denmark, a country which was almost entirely dependent on imports of coal, and where a long coastline made imports, largely from the UK, cheap and available. Towards the end of the First World War, however, and well into the 1920s, coal imports were cut off or difficult to obtain. We exploit detailed microlevel data from butter factories, covering the period 1900-28. We find that firms were able to adapt and make use of alternative fuels, notably peat, although its availability varied across the country. Employing a difference-in-differences approach, we find significant productivity advantages for creameries closer to available peat fields in the wake of the coal shortage.

Suggested Citation

  • Sharp, Paul & Henriques, Sofia Teives & Tsoukli, Xanthi & Vedel, Christian, 2021. "Resilience, Adaptability and Transformability: Danish Butter Factories in the Face of Coal Shortages," CEPR Discussion Papers 16769, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:16769
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    References listed on IDEAS

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    1. Sofia Teives Henriques & Paul Sharp, 2016. "The Danish agricultural revolution in an energy perspective: a case of development with few domestic energy sources," Economic History Review, Economic History Society, vol. 69(3), pages 844-869, August.
    2. Sofia Teives Henriques & Paul Sharp, 2021. "Without coal in the age of steam and dams in the age of electricity: an explanation for the failure of Portugal to industrialize before the Second World War," European Review of Economic History, European Historical Economics Society, vol. 25(1), pages 85-105.
    3. Lampe, Markus & Sharp, Paul, 2019. "A Land of Milk and Butter," University of Chicago Press Economics Books, University of Chicago Press, number 9780226549507, January.
    4. Henriksen, Ingrid & Lampe, Markus & Sharp, Paul, 2011. "The role of technology and institutions for growth: Danish creameries in the late nineteenth century," European Review of Economic History, Cambridge University Press, vol. 15(3), pages 475-493, December.
    5. Crafts, Nicholas & Wolf, Nikolaus, 2014. "The Location of the UK Cotton Textiles Industry in 1838: A Quantitative Analysis," The Journal of Economic History, Cambridge University Press, vol. 74(4), pages 1103-1139, December.
    6. Sofia Henriques & Eoin McLaughlin & Paul Sharp & Xanthi Tsoukli & Christian Veddel, 2020. "Opening the Black Box of the Danish Dairy Cooperatives: A Productivity Analysis," Working Papers 0203, European Historical Economics Society (EHES).
    7. Allen,Robert C., 2009. "The British Industrial Revolution in Global Perspective," Cambridge Books, Cambridge University Press, number 9780521868273, September.
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    9. Nina Boberg-Fazlic & Markus Lampe & Maja Uhre Pedersen & Paul Sharp, 2021. "Pandemics and protectionism: evidence from the “Spanish” flu," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-9, December.
    10. Nielsen, Hana, 2021. "Coal and Sugar: The Black and White Gold of Czech Industrialization (1841-1863)," Lund Papers in Economic History 229, Lund University, Department of Economic History.
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    18. Paul Sharp & Ingrid Henriksen & Markus Lampe, 2011. "The role of technology and institutions for growth: Danish creameries in the late-19th century," Working Papers 11028, Economic History Society.
    19. Sofia Teives Henriques & Paul Sharp, 2021. "Erratum to: Without coal in the age of steam and dams in the age of electricity: an explanation for the failure of Portugal to industrialize before the Second World War," European Review of Economic History, European Historical Economics Society, vol. 25(2), pages 404-404.
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    1. Jeanet Bentzen & Nina Boberg-Fazlic & Paul Sharp & Christian Volmar Skovsgaard & Christian Vedel, 2023. "Holy Cows and Spilt Milk - The Impact of Religious Conflict on Firm-Level Productivity," Working Papers 0245, European Historical Economics Society (EHES).

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    More about this item

    Keywords

    Coal; Dairying; Denmark; Energy; Geography; Peat; Productivity;
    All these keywords.

    JEL classification:

    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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