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Total Factor Productivity and Energy Intensity in Indian Manufacturing: A Cross-Sectional Study

Author

Listed:
  • Santosh Kumar Sahu

    (Department of Humanities & Social Sciences, IIT Bombay, India)

  • Krishnan Narayanan

    (Department of Humanities & Social Sciences, IIT Bombay, India)

Abstract

In recent climate change negotiations and debates, energy use pattern, efficiency and productivity cannot be overlooked and hence it is necessary to focus on these ascepts for Indian manufacturing industries. The objective of the paper is to estimate the transcendental logarithmic production function and analyse the relationship between energy intensity and total factor productivity (TFP). The estimation of TFP is based on four inputs model; labour, capital, material and energy. The findings suggest that labour and material inputs play major role as compared to the capital and energy input. Further, estimates suggest that age of the firm, export intensity and disembodied technology import are positively related to the TFP, where as ownership, energy intensity, embodied technology import and R&D intensity are negatively related to TFP of the Indian manufacturing industries. n addition, energy efficient firms also found to have high levels of TFP. This implies the need for fostering energy efficiency at firm level in Indian Manufacturing.

Suggested Citation

  • Santosh Kumar Sahu & Krishnan Narayanan, 2011. "Total Factor Productivity and Energy Intensity in Indian Manufacturing: A Cross-Sectional Study," International Journal of Energy Economics and Policy, Econjournals, vol. 1(2), pages 47-58, September.
    • Handle: RePEc:eco:journ2:2011-02-2
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    3. Lopamudra D. Satpathy & Bani Chatterjee & Jitendra Mahakud, 2017. "Firm Characteristics and Total Factor Productivity: Evidence from Indian Manufacturing Firms," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(1), pages 77-98, February.
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    6. Cantore, Nicola & Calì, Massimiliano & Velde, Dirk Willem te, 2016. "Does energy efficiency improve technological change and economic growth in developing countries?," Energy Policy, Elsevier, vol. 92(C), pages 279-285.
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    More about this item

    Keywords

    Production function; Total Factor Productivity; Energy Intensity; Indian Manufacturing Industries;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • B3 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals

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