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Understanding industrial energy use: Physical energy intensity changes in Indian manufacturing sector

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Author Info
Binay Kumar Ray (Indira Gandhi Institute of Development Research)
B. Sudhakara Reddy () (Indira Gandhi Institute of Development Research)
Abstract

We develop and analyze physical energy intensity indicators for Indian manufacturing sector. Energy consumption in five industrial sub-sectors, viz., iron and steel, aluminium, textiles, paper and cement is examined for the period 1990Ä2005. It is feasible to develop specific energy consumption indicators that reflect the physical reality more accurately than monetary energy intensities. These indicators allow us to analyze the effect of change in product mix over time. The use of physical energy intensity indicators improves comparability between countries, offers valuable input for policy-makers regarding intra-sectoral structural changes, and provides detailed explanation for observed changes in energy intensity. Hence, the results of the study point out the need to use physical indicators for policy making.

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Paper provided by Indira Gandhi Institute of Development Research, Mumbai, India in its series Indira Gandhi Institute of Development Research, Mumbai Working Papers with number 2008-011.

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Length: 26 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:ind:igiwpp:2008-011

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Related research
Keywords: Energy intensity; manufacturing/industry sector; product mix; energy indicators;

Find related papers by JEL classification:
P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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