Measuring Energy Use Efficiency in Presence of Undesirable Output: An Application of Data Envelopment Analysis (DEA) to Indian Cement Industry
In most cases, energy use in the production of a given desirable output results in the generation of undesirable output also as a by-product. Thus, the aim of this paper is to estimate energy use efficiency in Indian cement industry considering energy related undesirable emission. Depending on the presence and absence of undesirable output and environmental regulation, three measures of efficiency have been estimated at the state level from 2000-01 to 2004-05 by applying Data Envelopment Analysis. The first measure of energy efficiency considers both desirable and undesirable output simultaneously and assumes weak disposability of undesirable output, i.e. presence of environmental regulation aimed at reducing pollution levels, while the second measure considers only desirable output. The third measure also considers both desirable and undesirable output but it assumes strong disposability of undesirable output, i.e. absence of environmental regulation. Energy efficiency is defined as the ability of the producer to reduce the energy input to the largest extent possible, conditional on the given level of output, non-energy inputs and undesirable output. A comparison of energy efficiency estimates from the first two measures reveals that energy efficiency estimates are biased if only desirable output is considered. Results from the third measure demonstrate that environmental regulation has a reinforcing effect on energy use efficiency.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Nagarabhavi, Bangalore - 560072|
Web page: http://www.isec.ac.in/
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.:
- Gielen, Dolf & Taylor, Peter, 2009. "Indicators for industrial energy efficiency in India," Energy, Elsevier, vol. 34(8), pages 962-969.
- 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.
- Azadeh, A. & Amalnick, M.S. & Ghaderi, S.F. & Asadzadeh, S.M., 2007. "An integrated DEA PCA numerical taxonomy approach for energy efficiency assessment and consumption optimization in energy intensive manufacturing sectors," Energy Policy, Elsevier, vol. 35(7), pages 3792-3806, July.
- Boyd, Gale A. & Pang, Joseph X., 2000. "Estimating the linkage between energy efficiency and productivity," Energy Policy, Elsevier, vol. 28(5), pages 289-296, May.
- Victoria Shestalova, 2003. "Sequential Malmquist Indices of Productivity Growth: An Application to OECD Industrial Activities," Journal of Productivity Analysis, Springer, vol. 19(2), pages 211-226, April.
- Wei, Yi-Ming & Liao, Hua & Fan, Ying, 2007. "An empirical analysis of energy efficiency in China's iron and steel sector," Energy, Elsevier, vol. 32(12), pages 2262-2270.
- Hu, Jin-Li & Kao, Chih-Hung, 2007. "Efficient energy-saving targets for APEC economies," Energy Policy, Elsevier, vol. 35(1), pages 373-382, January.
- Mukherjee, Kankana, 2008. "Energy use efficiency in the Indian manufacturing sector: An interstate analysis," Energy Policy, Elsevier, vol. 36(2), pages 662-672, February.
- 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.
- Zhou, P. & Ang, B.W., 2008. "Linear programming models for measuring economy-wide energy efficiency performance," Energy Policy, Elsevier, vol. 36(8), pages 2901-2906, August.
- 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.
- 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.
- Ramanathan, Ramakrishnan, 2005. "An analysis of energy consumption and carbon dioxide emissions in countries of the Middle East and North Africa," Energy, Elsevier, vol. 30(15), pages 2831-2842.
- Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
- Ramanathan, R., 2000. "A holistic approach to compare energy efficiencies of different transport modes," Energy Policy, Elsevier, vol. 28(11), pages 743-747, September.
- Mukherjee, Kankana, 2008. "Energy use efficiency in U.S. manufacturing: A nonparametric analysis," Energy Economics, Elsevier, vol. 30(1), pages 76-96, January.
When requesting a correction, please mention this item's handle: RePEc:sch:wpaper:235. 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.