Assessing the impact of the Perform, Achieve, and Trade scheme on energy efficiency in India's iron and steel sector

Anushka Chauhan and Mohanasundari Thangavel

Energy Policy, 2025, vol. 198, issue C

Abstract: This paper assesses the performance of the iron and steel sector in the Perform, Achieve, and Trade (PAT) scheme's cycles I and II from firm-level data between 2004 and 2019. The two-way fixed effects difference-in-difference regression employed showed a decline of 1.7% in the energy intensity due to the scheme. To check for heterogeneity in the results, the quantile treatment estimator and centered regression showed that the PAT scheme was ineffective in firms with higher energy intensity than in firms with lower and medium energy intensity, implying structural and technical difficulties in reducing energy use. In the heterogeneity analysis, private Indian and private foreign firms performed better than government-owned firms. In the mechanism analysis, research and development intensity, repair intensity, exports, and efficiency in using net fixed assets have all contributed to meeting the targets of the PAT firms. Key policy recommendations include higher energy-saving targets, which should be set concerning energy consumption; a more decentralized approach should be taken in forming energy-saving targets for the firms considering heterogeneity in their characteristics; longer time may be given to materialize the effects of energy-efficient investments and adjust the factor inputs.

Keywords: Energy intensity; Energy conservation; Iron and steel; Perform; Achieve; Trade scheme; Energy efficiency (search for similar items in EconPapers)
JEL-codes: Q43 Q48 Q54 Q55 Q58 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421524005007
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:enepol:v:198:y:2025:i:c:s0301421524005007

DOI: 10.1016/j.enpol.2024.114480

Access Statistics for this article

Energy Policy is currently edited by N. France

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