An Alternative Measure of Efficiency in the Use of Electricity in India: A State Wise Assessment
Shrabani Mukherjee Additional contact information Shrabani Mukherjee: Centre for Economic Studies & Planning (CESP), Jawaharlal Nehru University, New Delhi, India
Abstract:
The present study attempts to make an alternative approach of estimating efficiency in the use of electrical energy in a broader structure by constructing a composite index of many causal variables. The index is measured with a reasonable degree of accuracy by ‘Principal Component Analysis’ method for the 18 major States in India. For the same, the study has taken two benchmark periods, 1990-91 (before power sector reforms) and 2000-01 (post power sector reforms) for the State wise assessment of efficiency in use of electricity and also to capture the impact of power sector reforms simultaneously. The result shows that at the level of the aggregate economy (or even at the level of an end-use sector) the electricity intensity, which is frequently used as the efficiency measurement in studies, is not a sufficient measure.