Capital intensity in the context of "Railroad"

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⭐ Core Definition: Capital intensity

Capital intensity is the amount of fixed or real capital present in relation to other factors of production, especially labor. At the level of either a production process or the aggregate economy, it may be estimated by the capital to labor ratio, such as from the points along a capital/labor isoquant. The inverse of capital intensity is labor intensity. Capital intensity is sometimes associated with industrialism, while labor intensity is sometimes associated with agrarianism.

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Capital intensity in the context of Rail transport

Rail transport (also known as train transport) is a means of transport using wheeled vehicles running on tracks, which usually consist of two parallel steel rails. Rail transport is one of the two primary means of land transport, next to road transport. It is used for about 8% of passenger and freight transport globally, thanks to its energy efficiency and potentially high speed. Also, the track spreads the weight of the train which means larger amounts can be carried than with trucks on roads.

Rolling stock on rails generally encounters lower frictional resistance than rubber-tyred road vehicles, allowing rail cars to be coupled into longer trains. Power is usually provided by diesel or electric locomotives. While railway transport is capital-intensive and less flexible than road transport, it can carry heavy loads of passengers and cargo with greater energy efficiency and safety.

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Capital intensity in the context of Light industry

Light industry are industries that usually are less capital-intensive than heavy industries and are more consumer-oriented than business-oriented, as they typically produce smaller consumer goods. Most light industry products are produced for end users rather than as intermediates for use by other industries. Light industry facilities typically have a smaller environmental impact than those associated with heavy industry. For that reason, zoning laws are more likely to permit light industry near residential areas.

One definition states that light industry is a "manufacturing activity that uses moderate amounts of partially processed materials to produce items of relatively high value per unit weight".

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Capital intensity in the context of Heavy industry

Heavy industry is an industry that involves one or more characteristics such as large and heavy products; large and heavy equipment and facilities (such as heavy equipment, large machine tools, huge buildings and large-scale infrastructure); or complex or numerous processes. Because of those factors, heavy industry involves higher capital intensity than light industry does, and is also often more heavily cyclical in investment and employment.

Though important to economic development and industrialization of economies, heavy industry can also have significant negative side effects: both local communities and workers frequently encounter health risks, heavy industries tend to produce byproducts that both pollute the air and water, and the industrial supply chain is often involved in other environmental justice issues from mining and transportation. Because of their intensity, heavy industries are also significant contributors to greenhouse gas emissions that cause climate change, and certain parts of the industries, especially high-heat processes used in metal working and cement production, are hard to decarbonize. Industrial activities such as mining also results in pollution consisting of heavy metals. Heavy metals are very damaging to the environment because they cannot be chemically degraded.

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Capital intensity in the context of Labor intensity

Labor intensity is the relative proportion of labor (compared to capital) used in any given process. Its inverse is capital intensity. Labor intensity is sometimes associated with agrarianism, while capital intensity is sometimes associated with industrialism.

Labor intensity has been declining since the onset of the Industrial Revolution in the late 1700s, while its inverse, capital intensity, has increased nearly exponentially since the latter half of the 20th century.

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