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Energy Productivity And Energy Demand: Experimental Evidence From Indian Manufacturing Plants

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  • Nicholas Ryan

Abstract

This paper studies a field experiment among energy-intensive Indian manufacturing plants that offered energy consulting to raise energy productivity, the amount plants can produce with each unit of energy. Treatment plants, after two years and relative to the control, run longer hours, demand more skilled labor and use 9.5 percent more electricity (standard error 7.3 percent). I assume that the treatment acted only through energy productivity to estimate the plant production function. The model estimates imply that energy complements skill and capital and that energy demand therefore responds more strongly to a productivity shock when plants can adjust these inputs.

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  • Nicholas Ryan, 2018. "Energy Productivity And Energy Demand: Experimental Evidence From Indian Manufacturing Plants," Working Papers id:12797, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12797
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    Citations

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    Cited by:

    1. Calì, Massimiliano & Cantore, Nicola & Iacovone, Leonardo & Pereira-López, Mariana & Presidente, Giorgio, 2022. "Too much energy The perverse effect of low fuel prices on firms," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    2. Oak, Hena & Bansal, Sangeeta, 2022. "Enhancing energy efficiency of Indian industries: Effectiveness of PAT scheme," Energy Economics, Elsevier, vol. 113(C).
    3. Bo, Shiyu & Chen, Ting & Liu, Cong, 2022. "Trade shocks, industrial growth, and electrification in early 20th-century China," Journal of Comparative Economics, Elsevier, vol. 50(3), pages 732-749.
    4. Sangeeta Bansal & Massimo Filippini & Suchita Srinivasan, 2023. "How Regulation Might Fail to Reduce Energy Consumption While Still Stimulating Total Factor Productivity Growth," CER-ETH Economics working paper series 23/379, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    5. Davis, Lucas W. & Martinez, Sebastian & Taboada, Bibiana, 2020. "How effective is energy-efficient housing? Evidence from a field trial in Mexico," Journal of Development Economics, Elsevier, vol. 143(C).
    6. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2023. "Technology Lock-In and Costs of Delayed Climate Policy," Working Papers 23-33, Center for Economic Studies, U.S. Census Bureau.
    7. 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.
    8. Grover,Arti Goswami & Karplus,Valerie Jean, 2020. "The Energy-Management Nexus in Firms : Which Practices Matter, How Much and for Whom ?," Policy Research Working Paper Series 9397, The World Bank.
    9. Bagchi, Prantik & Sahu, Santosh Kumar & Kumar, Ajay & Tan, Kim Hua, 2022. "Analysis of carbon productivity for firms in the manufacturing sector of India," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    10. Amann, Juergen & Cantore, Nicola & Calí, Massimiliano & Todorov, Valentin & Cheng, Charles Fang Chin, 2021. "Switching it up: The effect of energy price reforms in Oman," World Development, Elsevier, vol. 142(C).
    11. Naeher,Dominik & Narayanan,Raghavan & Ziulu,Virginia, 2021. "Impacts of Energy Efficiency Projects in Developing Countries : Evidence from a SpatialDifference-in-Differences Analysis in Malawi," Policy Research Working Paper Series 9842, The World Bank.
    12. Loureiro, Maria & Labandeira, Xavier, 2019. "Exploring Energy Use in Retail Stores: A Field Experiment," Energy Economics, Elsevier, vol. 84(S1).
    13. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2022. "Technology Lock-In and Optimal Carbon Pricing," CESifo Working Paper Series 9762, CESifo.
    14. Filippini, Massimo & Geissmann, Thomas & Karplus, Valerie J. & Zhang, Da, 2020. "The productivity impacts of energy efficiency programs in developing countries: Evidence from iron and steel firms in China," China Economic Review, Elsevier, vol. 59(C).

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