Total Factor Productivity and Energy Intensity in Indian Manufacturing: A Cross-Sectional Study
AbstractIn recent climate change negotiations and debates, energy use pattern, efficiency and productivity cannot be overlooked and hence it is necessary to focus on these ascepts for Indian manufacturing industries. The objective of the paper is to estimate the transcendental logarithmic production function and analyse the relationship between energy intensity and total factor productivity (TFP). The estimation of TFP is based on four inputs model; labour, capital, material and energy. The findings suggest that labour and material inputs play major role as compared to the capital and energy input. Further, estimates suggest that age of the firm, export intensity and disembodied technology import are positively related to the TFP, where as ownership, energy intensity, embodied technology import and R&D intensity are negatively related to TFP of the Indian manufacturing industries. Ýn addition, energy efficient firms also found to have high levels of TFP. This implies the need for fostering energy efficiency at firm level in Indian Manufacturing.
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Bibliographic InfoArticle provided by Econjournals in its journal International Journal of Energy Economics and Policy.
Volume (Year): 1 (2011)
Issue (Month): 2 (September)
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Web page: http://www.econjournals.com
Production function; Total Factor Productivity; Energy Intensity; Indian Manufacturing Industries;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
- B3 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals
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