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An Alternative Measure of Efficiency in the Use of Electricity in India: A State Wise Assessment

Author

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  • 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.

Suggested Citation

  • Shrabani Mukherjee, 2008. "An Alternative Measure of Efficiency in the Use of Electricity in India: A State Wise Assessment," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 43(2), pages 229-251, July.
  • Handle: RePEc:dse:indecr:v:43:y:2008:i:2:p:229-251
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    Citations

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    Cited by:

    1. Md zulquar Nain & Sai sailaja Bharatam & Bandi Kamaiah, 2017. "Electricity consumption and NSDP nexus in Indian states: a panel analysis with structural breaks," Economics Bulletin, AccessEcon, vol. 37(3), pages 1581-1601.
    2. Smita Nath, 2020. "Relationship between Economic Growth and Electricity Consumption in India: A Re-Investigation," Energy Economics Letters, Asian Economic and Social Society, vol. 7(1), pages 23-35, June.

    More about this item

    Keywords

    Electricity; Reforms; Efficiency; Composite Index;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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