Hornbeck, Richard; Hsu, Shanon; Humlum, Anders; … - National Bureau of Economic Research - 2024
We examine the long transition from water to steam power in US manufacturing, focusing on early users of mechanical … power: lumber and flour mills. Digitizing Census of Manufactures manuscripts for 1850 to 1880, we show that as steam costs … declined, manufacturing activity grew faster in counties with less waterpower potential. This growth was driven by steam …