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Understanding industrial energy use - Physical energy intensity changes in Indian manufacturing sector

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  • Binay Kumar Ray

    (Indira Gandhi Institute of Development Research)

  • B. Sudhakara Reddy

Abstract

We develop and analyze physical energy intensity indicators for Indian manufacturing sector. Energy consumption in five industrial sub-sectors, viz., iron and steel, aluminium, textiles, paper and cement is examined for the period 19902005. It is feasible to develop specific energy consumption indicators that reflect the physical reality more accurately than monetary energy intensities. These indicators allow us to analyze the effect of change in product mix over time. The use of physical energy intensity indicators improves comparability between countries, offers valuable input for policy-makers regarding intra-sectoral structural changes, and provides detailed explanation for observed changes in energy intensity. Hence, the results of the study point out the need to use physical indicators for policy making.

Suggested Citation

  • Binay Kumar Ray & B. Sudhakara Reddy, 2008. "Understanding industrial energy use - Physical energy intensity changes in Indian manufacturing sector," Energy Working Papers 22328, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:energy:22328
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy intensity; manufacturing/industry sector; product mix; energy indicators;
    All these keywords.

    JEL classification:

    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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