Decomposition of Industrial Energy Consumption in Indian Manufacturing : The Energy Intensity Approach
AbstractIncreasing energy consumption has been one of the major issues in the environmental and industrial economics in the context of global climate change. Recent literature has dealt with several methodological and application issues related to the technique of decomposing changes in industrial energy consumption. In this paper, we examine these issues in the context of another commonly adopted approach to decomposition of aggregate changes in energy intensity of Indian manufacturing industries. The industrial sector accounts for about 37 percent of the total final energy consumption in India. Of this the manufacturing sector consumes about 66 percent (2004-05). The manufacturing sector is one of the energy intensive industries among other industries in India. The scope of the study includes an empirical analysis of General Parametric Divisia Method. This paper follows the energy intensity approach rather the energy consumption approach. This method involves decomposition of the aggregate energy intensity index measured in terms of energy consumption per unit of output. The analysis also includes a comparison of the time series analysis versus the period-wise decomposition. The factors considered are changes in production structure and sectoral energy intensities. The results of the analysis confirm that the changes in sectoral energy intensity play a greater role in the variation in the total energy intensity of Indian Manufacturing compared to the changes in the production structure of the Industries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 21719.
Date of creation: 19 Mar 2010
Date of revision:
Decomposition Methodology; Energy Intensity; Manufacturing Industries; India;
Other versions of this item:
- Santosh Kumar Sahu & K. Narayanan, 2010. "Decomposition of Industrial Energy Consumption in Indian Manufacturing: The Energy Intensity Approach," Journal of Environmental Management and Tourism, ASERS Publishing, vol. 0(1), pages 22-38, June.
- B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-11 (All new papers)
- NEP-CSE-2010-04-11 (Economics of Strategic Management)
- NEP-ENE-2010-04-11 (Energy Economics)
- NEP-ENV-2010-04-11 (Environmental Economics)
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