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

Author

Listed:
  • 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.

Suggested Citation

  • Binay Kumar Ray & B. Sudhakara Reddy, 2008. "Understanding industrial energy use: Physical energy intensity changes in Indian manufacturing sector," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-011, Indira Gandhi Institute of Development Research, Mumbai, India.
  • Handle: RePEc:ind:igiwpp:2008-011
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    References listed on IDEAS

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    Cited by:

    1. Nihan Karali & Tengfang Xu & Jayant Sathaye, 2016. "Developing long-term strategies to reduce energy use and CO2 emissions—analysis of three mitigation scenarios for iron and steel production in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(5), pages 699-719, June.
    2. Raul Alberto Jimenez Mori & Jorge Enrique Mercado Díaz, 2013. "Energy Intensity: A Decomposition and Counterfactual Exercise for Latin American Countries," IDB Publications (Working Papers) 4594, Inter-American Development Bank.
    3. Reddy, B. Sudhakara, 2016. "India's energy system transition—Survival of the greenest," Renewable Energy, Elsevier, vol. 92(C), pages 293-302.
    4. repec:spr:endesu:v:20:y:2018:i:4:d:10.1007_s10668-017-9949-1 is not listed on IDEAS
    5. Peng, Lihong & Zhang, Yiting & Wang, Yejun & Zeng, Xiaoling & Peng, Najun & Yu, Ang, 2015. "Energy efficiency and influencing factor analysis in the overall Chinese textile industry," Energy, Elsevier, vol. 93(P1), pages 1222-1229.
    6. Jimenez, Raul & Mercado, Jorge, 2014. "Energy intensity: A decomposition and counterfactual exercise for Latin American countries," Energy Economics, Elsevier, vol. 42(C), pages 161-171.
    7. Balachandra, P. & Ravindranath, Darshini & Ravindranath, N.H., 2010. "Energy efficiency in India: Assessing the policy regimes and their impacts," Energy Policy, Elsevier, vol. 38(11), pages 6428-6438, November.
    8. Duran, Elisa & Aravena, Claudia & Aguilar, Renato, 2015. "Analysis and decomposition of energy consumption in the Chilean industry," Energy Policy, Elsevier, vol. 86(C), pages 552-561.
    9. Ang, B.W. & Xu, X.Y., 2013. "Tracking industrial energy efficiency trends using index decomposition analysis," Energy Economics, Elsevier, vol. 40(C), pages 1014-1021.
    10. Akbar Ullah & Karim Khan & Munazza Akhtar, 2014. "Energy Intensity: A Decomposition Exercise for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(4), pages 531-549.
    11. Xu, Tengfang & Karali, Nihan & Sathaye, Jayant, 2014. "Undertaking high impact strategies: The role of national efficiency measures in long-term energy and emission reduction in steel making," Applied Energy, Elsevier, vol. 122(C), pages 179-188.
    12. repec:sos:sosjrn:180307 is not listed on IDEAS

    More about this item

    Keywords

    Energy intensity; manufacturing/industry sector; product mix; energy indicators;

    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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