Energy use efficiency in the Indian manufacturing sector: An interstate analysis

This paper approaches the measurement of energy efficiency from a production theoretic framework and uses Data Envelopment Analysis to measure energy efficiency in the Indian manufacturing sector. Using data from the Annual Survey of Industries for the years 1998–99 through 2003–04, the study compar...

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Bibliographic Details
Published in:Energy policy 2008-02, Vol.36 (2), p.662-672
Main Author: Mukherjee, Kankana
Format: Article
Language:English
Subjects:
Applied sciences
Conservation of resources
Data Envelopment Analysis
Economic data
Energy
Energy consumption
Energy economics
Energy efficiency
Energy policy
Energy utilization
Exact sciences and technology
General, economic and professional studies
India
Indian manufacturing
Industrial economics
Industrial sector
Manufacturing
Methodology. Modelling
Reforms
Studies
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Summary:This paper approaches the measurement of energy efficiency from a production theoretic framework and uses Data Envelopment Analysis to measure energy efficiency in the Indian manufacturing sector. Using data from the Annual Survey of Industries for the years 1998–99 through 2003–04, the study compares the energy efficiency in manufacturing across states, based on several models. The results show considerable variation in energy efficiency across states. Comparing the results across our models, we find that the relative pricing of energy does not provide the appropriate incentives for energy conservation. A second-stage regression analysis reveals that states with a larger share of manufacturing output in energy-intensive industries have lower energy efficiency. Also, higher quality labor force associates with higher energy efficiency. Finally, the power sector reforms have not yet had any significant impact on achieving energy efficiency.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2007.10.015