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Energy Intensity of Indian Manufacturing Firms: Effect of Energy Prices, Technology and Firm Characteristics

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  • Bishwanath Goldar

Abstract

The paper examines the factors that influence energy intensity in Indian industries. It has two parts. In the first part, trends in energy intensity are analysis and cross-industry panel data (taken from ASI) are used to estimate an energy demand function. The results show that energy demand responds negatively to a hike in energy prices and positively to a hike in real wages. There are indications from the results of the analysis that the post- 1992 decline in energy intensity of Indian manufacturing is attributable mostly to an improvement in energy use efficiency of energy intensive industries, which in turn may be traced to hikes in the real price of energy paid by manufacturing firms.

Suggested Citation

  • Bishwanath Goldar, 2010. "Energy Intensity of Indian Manufacturing Firms: Effect of Energy Prices, Technology and Firm Characteristics," Working Papers id:2483, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:2483
    Note: Institutional Papers
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    References listed on IDEAS

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    Cited by:

    1. Soumita Khan, 2018. "An evaluation of input-specific technical efficiency of Indian fertilizer firms," Working Papers 410, Institute for Social and Economic Change, Bangalore.
    2. Santosh Kumar, Sahu & K., Narayanan, 2011. "Energy Intensity and Firm Performance: Do Energy Clusters Matter?," MPRA Paper 43457, University Library of Munich, Germany.
    3. 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.
    4. Oak, Hena & Bansal, Sangeeta, 2018. "Effect of Perform-Achieve-Trade Policy on Energy Efficiency of Indian Industries: Evidence from Fertilizer Industry," 2018 Annual Meeting, August 5-7, Washington, D.C. 274422, Agricultural and Applied Economics Association.

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    Keywords

    ASI; prices; technology; industries; demand; energy; real wages; Indian; manufacturing; real price; manufacturing firms;
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