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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
