IDEAS home Printed from https://ideas.repec.org/p/ind/igiwpp/2008-011.html
   My bibliography  Save this paper

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

Author

Listed:
  • Binay Kumar Ray

    (Indira Gandhi Institute of Development Research)

  • B. Sudhakara Reddy

    (Indira Gandhi Institute of Development Research)

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 1990 2005. 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," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-011, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2008-011
    as

    Download full text from publisher

    File URL: http://www.igidr.ac.in/pdf/publication/WP-2008-011.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Choi, Ki-Hong & Ang, B. W., 2003. "Decomposition of aggregate energy intensity changes in two measures: ratio and difference," Energy Economics, Elsevier, vol. 25(6), pages 615-624, November.
    2. Phylipsen, G. J. M. & Blok, K. & Worrell, E., 1997. "International comparisons of energy efficiency-Methodologies for the manufacturing industry," Energy Policy, Elsevier, vol. 25(7-9), pages 715-725.
    3. Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
    4. Ang, B. W. & Liu, F. L. & Chew, E. P., 2003. "Perfect decomposition techniques in energy and environmental analysis," Energy Policy, Elsevier, vol. 31(14), pages 1561-1566, November.
    5. Sun, J. W., 1998. "Changes in energy consumption and energy intensity: A complete decomposition model," Energy Economics, Elsevier, vol. 20(1), pages 85-100, February.
    6. Saumitra N. Bhaduri, Rajeev K. Chaturvedi, 2002. "Decomposition of India's industrial energy use: a case study using energy intensity approach," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 17(1/2), pages 92-105.
    7. Ang, B.W. & Liu, F.L. & Chung, Hyun-Sik, 2004. "A generalized Fisher index approach to energy decomposition analysis," Energy Economics, Elsevier, vol. 26(5), pages 757-763, September.
    8. de Nooij, Michiel & van der Kruk, Rene & van Soest, Daan P., 2003. "International comparisons of domestic energy consumption," Energy Economics, Elsevier, vol. 25(4), pages 359-373, July.
    9. Park, Se-Hark, 1992. "Decomposition of industrial energy consumption : An alternative method," Energy Economics, Elsevier, vol. 14(4), pages 265-270, October.
    10. Bhattacharyya, Subhes C. & Ussanarassamee, Arjaree, 2004. "Decomposition of energy and CO2 intensities of Thai industry between 1981 and 2000," Energy Economics, Elsevier, vol. 26(5), pages 765-781, September.
    11. Farla, Jacco & Blok, Kornelis & Schipper, Lee, 1997. "Energy efficiency developments in the pulp and paper industry : A cross-country comparison using physical production data," Energy Policy, Elsevier, vol. 25(7-9), pages 745-758.
    12. Ang, BW, 1994. "Decomposition of industrial energy consumption : The energy intensity approach," Energy Economics, Elsevier, vol. 16(3), pages 163-174, July.
    13. X. Q. Liu & B. W. Ang & H.L. Ong, 1992. "The Application of the Divisia Index to the Decomposition of Changes in Industrial Energy Consumption," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 161-178.
    14. Ang, B.W. & Liu, Na, 2007. "Energy decomposition analysis: IEA model versus other methods," Energy Policy, Elsevier, vol. 35(3), pages 1426-1432, March.
    15. Ang, B. W. & Lee, S. Y., 1994. "Decomposition of industrial energy consumption : Some methodological and application issues," Energy Economics, Elsevier, vol. 16(2), pages 83-92, April.
    16. Boyd, Gale A. & Hanson, Donald A. & Sterner, Thomas, 1988. "Decomposition of changes in energy intensity : A comparison of the Divisia index and other methods," Energy Economics, Elsevier, vol. 10(4), pages 309-312, October.
    17. Claire P. Doblin, 1988. "Declining Energy Intensity in the U.S. Manufacturing Sector," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 109-135.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ang, B.W. & Huang, H.C. & Mu, A.R., 2009. "Properties and linkages of some index decomposition analysis methods," Energy Policy, Elsevier, vol. 37(11), pages 4624-4632, November.
    2. Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
    3. Lenzen, Manfred, 2006. "Decomposition analysis and the mean-rate-of-change index," Applied Energy, Elsevier, vol. 83(3), pages 185-198, March.
    4. Jeong, Kyonghwa & Kim, Suyi, 2013. "LMDI decomposition analysis of greenhouse gas emissions in the Korean manufacturing sector," Energy Policy, Elsevier, vol. 62(C), pages 1245-1253.
    5. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    6. Fernández, Esteban & Fernández, Paula, 2008. "An extension to Sun's decomposition methodology: The Path Based approach," Energy Economics, Elsevier, vol. 30(3), pages 1020-1036, May.
    7. Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
    8. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Tracking European Union CO2 emissions through LMDI (logarithmic-mean Divisia index) decomposition. The activity revaluation approach," Energy, Elsevier, vol. 73(C), pages 741-750.
    9. Binay Kumar Ray & B. Sudhakara Reddy, 2007. "Decomposition of energy consumption and energy intensity in Indian manufacturing industries," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2007-020, Indira Gandhi Institute of Development Research, Mumbai, India.
    10. Shaista Alam & Mohammad Sabihuddin Butt, 2001. "Assessing Energy Consumption and Energy Intensity Changes in Pakistan: An Application of Complete Decomposition Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(2), pages 135-147.
    11. Ang, B. W., 1995. "Multilevel decomposition of industrial energy consumption," Energy Economics, Elsevier, vol. 17(1), pages 39-51, January.
    12. Bor, Yunchang Jeffrey, 2008. "Consistent multi-level energy efficiency indicators and their policy implications," Energy Economics, Elsevier, vol. 30(5), pages 2401-2419, September.
    13. Fernández González, P. & Landajo, M. & Presno, M.J., 2013. "The Divisia real energy intensity indices: Evolution and attribution of percent changes in 20 European countries from 1995 to 2010," Energy, Elsevier, vol. 58(C), pages 340-349.
    14. Sun, J.W & Ang, B.W, 2000. "Some properties of an exact energy decomposition model," Energy, Elsevier, vol. 25(12), pages 1177-1188.
    15. Lin, Boqiang & Du, Kerui, 2014. "Decomposing energy intensity change: A combination of index decomposition analysis and production-theoretical decomposition analysis," Applied Energy, Elsevier, vol. 129(C), pages 158-165.
    16. Seck, Gondia Sokhna & Guerassimoff, Gilles & Maïzi, Nadia, 2016. "Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case," Energy Policy, Elsevier, vol. 89(C), pages 114-124.
    17. de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Decomposition of CO2 emissions change from energy consumption in Brazil: Challenges and policy implications," Energy Policy, Elsevier, vol. 39(3), pages 1495-1504, March.
    18. Ang, B.W. & Liu, Na, 2007. "Energy decomposition analysis: IEA model versus other methods," Energy Policy, Elsevier, vol. 35(3), pages 1426-1432, March.
    19. Chontanawat, Jaruwan & Wiboonchutikula, Paitoon & Buddhivanich, Atinat, 2014. "Decomposition analysis of the change of energy intensity of manufacturing industries in Thailand," Energy, Elsevier, vol. 77(C), pages 171-182.
    20. P. Fernández-González & M. Landajo & M.J. Presno, 2013. "Factors Influencing Changes In Aggregate Energy Consumption. An European Cross-Country Analysis," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 18-30.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ind:igiwpp:2008-011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Shamprasad M. Pujar (email available below). General contact details of provider: https://edirc.repec.org/data/igidrin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.