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Productivity Trends in India's Energy Intensive Industries

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  • Joyashree Roy
  • Jayant Sathaye
  • Alan Sanstad
  • Puran Mongia
  • Katja Schumacher

Abstract

This paper reports on an analysis of productivity growth and input trends in six energy intensive sectors of the Indian economy, using growth accounting and econometric methods. The econometric work estimates rates and factor price biases of technological change using a translog production model with an explicit relationship defined for technological change. Estimates of ownprice responses indicate that raising energy prices would be an effective carbon abatement policy for India. At the same time, our results suggest that, as with previous findings on the U.S. economy, such policies in India could have negative long run effects on productivity in these sectors. Inter-input substitution possibilities are relatively weak, so that such policies might have negative short and medium term effects on sectoral growth. Our study provides information relevant for the analysis of costs and benefits of carbon abatement policies applied to India and thus contributes to the emerging body of modeling and analysis of global climate policy.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume20 (1999)
Issue (Month): Number 3 ()
Pages: 33-61

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Handle: RePEc:aen:journl:1999v20-03-a02

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Cited by:
  1. Mukherjee, Kankana, 2008. "Energy use efficiency in the Indian manufacturing sector: An interstate analysis," Energy Policy, Elsevier, vol. 36(2), pages 662-672, February.
  2. William Reidhead, 2001. "Achieving agricultural pumpset efficiency in rural India," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 135-151.
  3. Santosh Kumar Sahu & Krishnan Narayanan, 2011. "Total Factor Productivity and Energy Intensity in Indian Manufacturing: A Cross-Sectional Study," International Journal of Energy Economics and Policy, Econjournals, vol. 1(2), pages 47-58, September.
  4. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer, vol. 43(2), pages 453-472, June.
  5. Sabuj Kumar Mandal & S Madheswaran, 2009. "Energy Use Efficiency in Indian Cement Industry: Application of Data Envelopment Analysis and Directional Distance Function," Working Papers 230, Institute for Social and Economic Change, Bangalore.
  6. Sabuj Kumar Mandal, 2009. "Technological Progress, Scale Effect and Total Factor Productivity Growth in Indian Cement Industry: Panel Estimation of Stochastic Production Frontier," Working Papers 216, Institute for Social and Economic Change, Bangalore.
  7. Gupta, Manish & Sengupta, Ramprasad, 2012. "Energy Savings Potential and Policy for Energy Conservation in Selected Indian Manufacturing Industries," Working Papers 12/105, National Institute of Public Finance and Policy.
  8. Fan, Ying & Liao, Hua & Wei, Yi-Ming, 2007. "Can market oriented economic reforms contribute to energy efficiency improvement? Evidence from China," Energy Policy, Elsevier, vol. 35(4), pages 2287-2295, April.

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