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Energy Use Efficiency of India’s Organised Manufacturing

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  • Bishwanath Goldar

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.

Suggested Citation

  • Bishwanath Goldar, 2013. "Energy Use Efficiency of India’s Organised Manufacturing," Review of Market Integration, India Development Foundation, vol. 5(2), pages 131-154, August.
    • Handle: RePEc:sae:revmar:v:5:y:2013:i:2:p:131-154
    DOI: 10.1177/0974929214521893
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    References listed on IDEAS

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    1. Manish Gupta & Ramprasad Sengupta, 2013. "Energy Savings Potential and Policy for Energy Conservation in Selected Indian Manufacturing Industries," Review of Market Integration, India Development Foundation, vol. 5(3), pages 363-388, December.
    2. Pindyck, Robert S, 1979. "Interfuel Substitution and the Industrial Demand for Energy: An International Comparison," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 169-179, May.
    3. Malte Meinshausen & Nicolai Meinshausen & William Hare & Sarah C. B. Raper & Katja Frieler & Reto Knutti & David J. Frame & Myles R. Allen, 2009. "Greenhouse-gas emission targets for limiting global warming to 2 °C," Nature, Nature, vol. 458(7242), pages 1158-1162, April.
    4. Myles R. Allen & David J. Frame & Chris Huntingford & Chris D. Jones & Jason A. Lowe & Malte Meinshausen & Nicolai Meinshausen, 2009. "Warming caused by cumulative carbon emissions towards the trillionth tonne," Nature, Nature, vol. 458(7242), pages 1163-1166, April.
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    Cited by:

    1. Santosh K. Sahu & Deepanjali Mehta, 2018. "Determinants Of Energy And Co2 Emission Intensities: A Study Of Manufacturing Firms In India," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 389-407, March.
    2. Bishwanath Goldar & Yashobanta Parida & Deepika Sehdev, 2017. "Reduction in Carbon Emissions Intensity and Impact on Export Competitiveness: Evidence from Indian Manufacturing Firms," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 1-30, June.

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