Energy Use Efficiency of India’s Organised Manufacturing

Bishwanath Goldar

Review of Market Integration, 2013, vol. 5, issue 2, 131-154

Abstract: There was a distinct downward trend in energy intensity in Indian manufacturing in the period since 1992. Such a trend is found for aggregate manufacturing and for each of the five two-digit energy intensive industries studied. Based on results of the econometric analysis undertaken, using a Translog production function, it appears that this reduction in energy intensity in Indian manufacturing is attributable, at least in part, to the substitution of energy by capital and accelerated technical change in the period after 1992. The state-level analysis covering eight three-digit energy intensive industries for the period 1998–99 to 2007–08 reveals wide variation across states in terms of the reduction in energy intensity achieved. Econometric analysis of the observed variation brings out the importance of new investment and scale economies for reducing energy intensity. It also shows the importance of entry of new factories in improving energy use efficiency at the industry level.

Keywords: energy intensity; Indian manufacturing; embodied technical change (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:sae:revmar:v:5:y:2013:i:2:p:131-154

DOI: 10.1177/0974929214521893

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