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Energy Intensity, Productivity and Pollution Loads: Empirical Evidence from Manufacturing Sector of India

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  • Prantik Bagchi
  • Santosh Kumar Sahu

Abstract

We explain the relationship between energy intensity and productivity for the organized manufacturing sector of India. Using data from the secondary sources, we explain the relationships at aggregate, state and industry levels. The novelty of this paper lies in bringing in pollution loads in explaining inter-industry variations in energy intensity. Results of this study indicate that the organized manufacturing sector of India has gained energy efficiency and productivity. We found heterogeneity among Indian states in productivity growth and energy intensity. The results indicate that small states performed well whereas large states fall in the productivity paradox. The productivity dilemma hypothesis is validated at industry level analysis however, results are inconsistent to validate the decoupling growth hypothesis. Pollution loads as classified by Government of India, plays a vital role in explaining energy intensity variations across industries, which calls for better policies aiming at pollutive industries specifically to achieve sustainable growth for the manufacturing sector of the Indian economy.

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  • Prantik Bagchi & Santosh Kumar Sahu, 2020. "Energy Intensity, Productivity and Pollution Loads: Empirical Evidence from Manufacturing Sector of India," Studies in Microeconomics, , vol. 8(2), pages 194-211, December.
    • Handle: RePEc:sae:miceco:v:8:y:2020:i:2:p:194-211
    DOI: 10.1177/2321022220930968
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    Cited by:

    1. Santosh Kumar Sahu & Prantik Bagchi & Ajay Kumar & Kim Hua Tan, 2022. "Technology, price instruments and energy intensity: a study of firms in the manufacturing sector of the Indian economy," Annals of Operations Research, Springer, vol. 313(1), pages 319-339, June.
    2. Bagchi, Prantik & Sahu, Santosh Kumar & Kumar, Ajay & Tan, Kim Hua, 2022. "Analysis of carbon productivity for firms in the manufacturing sector of India," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    3. Arup Roy & Ranjan DasGupta, 2024. "Economic Development, Energy Consumption, and Environmental Deterioration: A Non-Linear Evidence from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 22(3), pages 721-747, September.
    4. Pal, Kalyani & Mukhopadhyay, Jyoti Prasad & Bhagawan, Praveen, 2024. "Does cap-and-trade scheme impact energy efficiency and firm value? Empirical evidence from India," Energy Economics, Elsevier, vol. 134(C).
    5. Isma Samreen & Muhammad Tariq Majeed, 2022. "Economic development, social–political factors and ecological footprint: a global panel data analysis," SN Business & Economics, Springer, vol. 2(9), pages 1-19, September.

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