India's Changing Energy Hallmark: An Input-Output Approach

39 Pages Posted: 18 Dec 2015

See all articles by Shahid Ahmed

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics

Anjali Tandon

National Council of Applied Economic Research

Date Written: 2012

Abstract

Increasing interaction between economic growth and its environmental implications requires a more focused study of energy linkages. This paper is an attempt to trace changing energy linkages in an I-O framework using widely accepted concepts of backward and forward linkages. It differs from impact analysis that has final demand of a sector as its initial point of investigation. The analysis is an attempt to highlight growing importance of energy through study of changing supply-and-use relationships among sectors, which is the subject of this paper.

Energy sector is now the centre stage of economic activity due its deeper inter-linkages with the economy. It has both the characteristics of a key sector -- stimulating for the economy as well as sensitive to changes in the economy. It is a catalyst for the Indian economy since an increase in energy final demand would stimulate production in other sectors, and growth in rest of the economy may increase the demand for energy output. India’s energy characteristics have changed both in terms of pattern as well as degree of interdependence. The paper concludes that India’s Energy Hallmark has changed. It identifies energy as a key sector forthrightly calling for attention in future policy formulations.

Keywords: Energy, linkages, backward linkage, forward linkage, multiplier product matrix, India

JEL Classification: C67, D57, Q4

Suggested Citation

Ahmed, Shahid and Tandon, Anjali, India's Changing Energy Hallmark: An Input-Output Approach (2012). Available at SSRN: https://ssrn.com/abstract=2705310 or http://dx.doi.org/10.2139/ssrn.2705310

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics ( email )

Jamia Nagar
New Delhi, 110025
India

HOME PAGE: http://jmi.ac.in/economics/faculty-members/Prof_Shahid_Ahmed-1783

Anjali Tandon (Contact Author)

National Council of Applied Economic Research ( email )

Parisila Bhawan
11 - Indraprastha Estate
New Delhi, 110002
India

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