Energy Input–Output Analysis for Household Sector of India

With expanding population, increase in standard of living and associated growth in demand for goods and services lead to higher demand for energy resources. Excessive use of energy causes environmental degradation and pollution. People from lower income group are more vulnerable to the effects of environmental degradation, because of limited access to resources to abate the adverse effects of environmental hazards. But residential sector is responsible for consumption of bulk of energy in different forms and plays a crucial role in determining the pattern of energy consumption of the economy. It consumes energy directly in form of primary fuels like coal or in form of secondary fuels like electricity or petroleum products. Additionally, all the goods and services consumed by this sector require different forms of energy in production, distribution, and transport process, which are carried out in different sectors. This paper identifies energy-intensive sectors in Indian economy and explores the role of residential sector in energy consumption, in direct and aggregate terms, through energy input–output analysis. Results show evidence of high-energy intensity in electricity and petroleum products. Among non-energy sectors, direct energy intensity is high for chemical and cement industries. Apart from these industries, total energy intensity is high for textile, leather and rubber, metal products among manufacturing industries, and for transport, storage and communication among services sector. The analysis shows that average per capita total (direct and indirect) energy consumption by residential sector in urban area is quite high as compared to rural sector. Direct and total energy distribution pattern is significantly different among rich and poor, owing to the difference in their lifestyles. Policy measures to promote energy efficiency through economic and technological interventions are discussed in this context.