Does innovative capability enhance the energy efficiency of Indian Iron and Steel firms? A Bayesian stochastic frontier analysis

Salman Haider and Prajna Paramita Mishra

Energy Economics, 2021, vol. 95, issue C

Abstract: This paper aims to estimate energy efficiency and quantify the energy-saving potential of Indian iron and steel firms. Further, we explore the influence of different innovative capability channels that can enhance energy efficiency. Firm-level data of 82 Indian iron and steel firms over the period of 2003–2017 has been taken to investigate the issues. Bayesian stochastic frontier analysis (SFA) has been adopted to measure underlying energy efficiency. The results show that most of the firms can reduce half of their energy consumption, while substantial heterogeneity exists in terms of energy efficiency. The Bayesian SFA outperforms classical SFA and documents slightly declining evidence of energy efficiency over time. The analysis also depicts that investing in R&D expenditure, patenting activity, and disembodied technology flow enables firms to achieve higher stage energy efficiency. ISO 14001 certified firms do not perform better than non-certified firms, and there is no significant effect of embodied technology on the firms' energy efficiency.

Keywords: Energy efficiency; Bayesian SFA; Technological innovation; ISO 14001 certification (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988321000335
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:95:y:2021:i:c:s0140988321000335

DOI: 10.1016/j.eneco.2021.105128

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().