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Total Factor Productivity and Energy Intensity in Indian Manufacturing: A Cross-Sectional Study

Author

Listed:
  • Santosh Kumar Sahu

    (Department of Humanities & Social Sciences, IIT Bombay, India)

  • Krishnan Narayanan

    (Department of Humanities & Social Sciences, IIT Bombay, India)

Abstract

In 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. n 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.

Suggested Citation

  • 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.
    • Handle: RePEc:eco:journ2:2011-02-2
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    References listed on IDEAS

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    Cited by:

    1. Zoran Boroviæ & Mladen Rebiæ & Dalibor Tomaš, 2020. "Total factor productivity drivers in the selected EU countries: Cointegration approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 295-315.
    2. Denila Jinny Arulraj & Thillai Rajan Annamalai, 2020. "Firms’ Financing Choices and Firm Productivity: Evidence from an Emerging Economy," International Journal of Global Business and Competitiveness, Springer, vol. 15(1), pages 35-48, June.
    3. Denila Jinny Arulraj & Thillai Rajan Annamalai, 0. "Firms’ Financing Choices and Firm Productivity: Evidence from an Emerging Economy," International Journal of Global Business and Competitiveness, Springer, vol. 0, pages 1-14.
    4. Kenneth Kigundu Macharia & Dianah Ngui & John Kamau Gathiaka, 2022. "Effects of Energy Efficiency on Firm Productivity in Kenya’s Manufacturing Sector," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 15(3), pages 1-90, May.
    5. Tombe, Trevor & Winter, Jennifer, 2015. "Environmental policy and misallocation: The productivity effect of intensity standards," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 137-163.
    6. Muslima Zahan & Ron S. Kenett, 2013. "Modeling and Forecasting Energy Consumption in the Manufacturing Industry in South Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 3(1), pages 87-98.
    7. Asmita Goswami & K. Narayanan, 2022. "Technological Efforts, Firm Ownership and Productivity: A Study of Information Technology Service Firms in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 23(1), pages 86-109, March.
    8. France Krizanic & Zan Jan Oplotnik & Vasja Kolsek & Alenka Kavkler, 2015. "Production Factors Use in the European Electricity Producing Companies During the Last Financial Crisis," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 725-730.
    9. Lopamudra D. Satpathy & Bani Chatterjee & Jitendra Mahakud, 2017. "Firm Characteristics and Total Factor Productivity: Evidence from Indian Manufacturing Firms," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(1), pages 77-98, February.
    10. You-How Go & Lin-Sea Lau & Kwang-Jing Yii & Wee-Yeap Lau, 2020. "Does energy efficiency affect economic growth? Evidence from aggregate and disaggregate levels," Energy & Environment, , vol. 31(6), pages 983-1006, September.
    11. Prantik Bagchi & Santosh Kumar Sahu, 2020. "Energy Intensity, Productivity and Pollution Loads: Empirical Evidence from Manufacturing Sector of India," Studies in Microeconomics, , vol. 8(2), pages 194-211, December.
    12. repec:clg:wpaper:2014-01 is not listed on IDEAS
    13. Cantore, Nicola & Calì, Massimiliano & Velde, Dirk Willem te, 2016. "Does energy efficiency improve technological change and economic growth in developing countries?," Energy Policy, Elsevier, vol. 92(C), pages 279-285.

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    More about this item

    Keywords

    Production function; Total Factor Productivity; Energy Intensity; Indian Manufacturing Industries;
    All these keywords.

    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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