Economics at your fingertips  

Convergence of energy productivity across Indian states and territories

Mita Bhattacharya, John Inekwe (), Perry Sadorsky and Anjan Saha ()

Energy Economics, 2018, vol. 74, issue C, 427-440

Abstract: The Indian government has a number of ambitious economic and energy related initiatives including increasing access to electricity (“24X7 Power for All”), greater economic activity from manufacturing (“Make in India”), and reducing carbon dioxide emissions. Energy productivity is an important factor in helping to achieve these objectives. In this paper, we test the hypothesis of energy productivity convergence in a panel of contiguous states and territories (S&Ts) in India. In measuring energy productivity at the S&T level, we use a unique firm-level dataset maintained by the Centre for Monitoring Indian Economy (CMIE) for the period 1988 to 2016. We identify convergence clubs across Indian S&Ts; i.e. we identify groups of states that converge to different equilibria. The findings from the club merging analysis show that energy productivity across the S&Ts converges into two clubs with one divergent club. Higher initial energy productivity makes it more likely for states to be in the high energy productivity club. Industry structure is also an important determinant. The club convergence of the S&Ts has implications for Indian energy policy.

Keywords: Indian states and territories; Club convergence; Energy productivity; Panel data and stochastic convergence (search for similar items in EconPapers)
JEL-codes: C33 Q43 Q48 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
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:

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 Dana Niculescu ().

Page updated 2019-09-15
Handle: RePEc:eee:eneeco:v:74:y:2018:i:c:p:427-440