Energy Use Efficiency in Indian Cement Industry: Application of Data Envelopment Analysis and Directional Distance Function
The present paper aims at measuring energy use efficiency in Indian cement industry and estimating the factors explaining inter-firm variations in energy use efficiency. Within the framework of production theory, Data Envelopment Analysis (DEA) and directional distance function (DDF) have been used to measure energy use efficiency. Using data from electronic CMIE PROWESS data base for the years 1989-90 through 2006-07, the study first estimates energy efficiency and then compares the energy efficiency across firms in the Indian cement industry. Empirical results suggest that there is enough scope for the Indian cement firms to reduce energy uses, though this potential for energy saving varies across firms. A second-stage regression analysis reveals that firms with larger production volume have higher energy efficiency scores and that age of the firms does not have any significant impact on energy use efficiency. Also, higher quality of labor force associates with higher energy use efficiency. Finally, Energy Conservation Act, 2001, has not yet had any significant impact on energy use efficiency.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.isec.ac.in/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rabindranath Bhattacharya & Shyamal Paul, 2001. "Sectoral Changes in Consumption and Intensity of Energy in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 36(2), pages 381-392, July.
- Gielen, Dolf & Taylor, Peter, 2009. "Indicators for industrial energy efficiency in India," Energy, Elsevier, vol. 34(8), pages 962-969.
- Tiwari, Piyush, 2000. "An analysis of sectoral energy intensity in India," Energy Policy, Elsevier, vol. 28(11), pages 771-778, September.
- Mukherjee, Kankana, 2008. "Energy use efficiency in the Indian manufacturing sector: An interstate analysis," Energy Policy, Elsevier, vol. 36(2), pages 662-672, February.
- 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.
- Yang, Ming, 2006. "Energy efficiency policy impact in India: case study of investment in industrial energy efficiency," Energy Policy, Elsevier, vol. 34(17), pages 3104-3114, November.
- Paul, Shyamal & Bhattacharya, Rabindra Nath, 2004. "CO2 emission from energy use in India: a decomposition analysis," Energy Policy, Elsevier, vol. 32(5), pages 585-593, March.
- Srivastava, Leena, 1997. "Energy and CO2 emissions in India: increasing trends and alarming portents," Energy Policy, Elsevier, vol. 25(11), pages 941-949, September.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Nandi, Paritosh & Basu, Sujay, 2008. "A review of energy conservation initiatives by the Government of India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(2), pages 518-530, February.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:230. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand)
If references are entirely missing, you can add them using this form.