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Productivity Trends in India's Energy Intensive Industries

Author

Listed:
  • Joyashree Roy
  • Jayant Sathaye
  • Alan Sanstad
  • Puran Mongia
  • Katja Schumacher

Abstract

This paper reports on an analysis of productivity growth and input trends in six energy intensive sectors of the Indian economy, using growth accounting and econometric methods. The econometric work estimates rates and factor price biases of technological change using a translog production model with an explicit relationship defined for technological change. Estimates of ownprice responses indicate that raising energy prices would be an effective carbon abatement policy for India. At the same time, our results suggest that, as with previous findings on the U.S. economy, such policies in India could have negative long run effects on productivity in these sectors. Inter-input substitution possibilities are relatively weak, so that such policies might have negative short and medium term effects on sectoral growth. Our study provides information relevant for the analysis of costs and benefits of carbon abatement policies applied to India and thus contributes to the emerging body of modeling and analysis of global climate policy.

Suggested Citation

  • Joyashree Roy & Jayant Sathaye & Alan Sanstad & Puran Mongia & Katja Schumacher, 1999. "Productivity Trends in India's Energy Intensive Industries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 33-61.
  • Handle: RePEc:aen:journl:1999v20-03-a02
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    Citations

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    Cited by:

    1. Mukherjee, Kankana, 2008. "Energy use efficiency in the Indian manufacturing sector: An interstate analysis," Energy Policy, Elsevier, vol. 36(2), pages 662-672, February.
    2. Fan, Ying & Liao, Hua & Wei, Yi-Ming, 2007. "Can market oriented economic reforms contribute to energy efficiency improvement? Evidence from China," Energy Policy, Elsevier, vol. 35(4), pages 2287-2295, April.
    3. Manish Gupta & Ramprasad Sengupta, 2013. "Energy Savings Potential and Policy for Energy Conservation in Selected Indian Manufacturing Industries," Review of Market Integration, India Development Foundation, vol. 5(3), pages 363-388, December.
    4. Dasgupta, Shyamasree & Roy, Joyashree, 2015. "Understanding technological progress and input price as drivers of energy demand in manufacturing industries in India," Energy Policy, Elsevier, vol. 83(C), pages 1-13.
    5. Bernstein, Paul M. & Montgomery, W. David & Tuladhar, Sugandha D., 2006. "Potential for reducing carbon emissions from non-Annex B countries through changes in technology," Energy Economics, Elsevier, vol. 28(5-6), pages 742-762, November.
    6. Sabuj Kumar Mandal, 2009. "Technological Progress, Scale Effect and Total Factor Productivity Growth in Indian Cement Industry: Panel Estimation of Stochastic Production Frontier," Working Papers 216, Institute for Social and Economic Change, Bangalore.
    7. Roy, Joyashree & Sanstad, Alan H. & Sathaye, Jayant A. & Khaddaria, Raman, 2006. "Substitution and price elasticity estimates using inter-country pooled data in a translog cost model," Energy Economics, Elsevier, vol. 28(5-6), pages 706-719, November.
    8. Sabuj Kumar Mandal & S Madheswaran, 2009. "Energy Use Efficiency in Indian Cement Industry: Application of Data Envelopment Analysis and Directional Distance Function," Working Papers 230, Institute for Social and Economic Change, Bangalore.
    9. 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.
    10. William Reidhead, 2001. "Achieving agricultural pumpset efficiency in rural India," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(2), pages 135-151.
    11. Mongia, Puran & Schumacher, Katja & Sathaye, Jayant, 2001. "Policy reforms and productivity growth in India's energy intensive industries," Energy Policy, Elsevier, vol. 29(9), pages 715-724, July.
    12. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 453-472, June.
    13. Sanstad, Alan H. & Roy, Joyashree & Sathaye, Jayant A., 2006. "Estimating energy-augmenting technological change in developing country industries," Energy Economics, Elsevier, vol. 28(5-6), pages 720-729, November.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

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