Decomposition of Energy Consumption in India: A Case of Output Leakage and Technology Improvement

31 Pages Posted: 7 Apr 2016

See all articles by Anjali Tandon

Anjali Tandon

National Council of Applied Economic Research

Shahid Ahmed

Jamia Millia Islamia (A Central University) - Economics

Date Written: 2015

Abstract

The paper attempts to study relative contribution of the specific sources of changes in energy use in the Indian economy. Results of a structural decomposition analysis in a constant price hybrid Input-Output framework underscore contribution of the final demand shifts as a significant factor impacting the energy use. Nevertheless, changes over time in production technology exhibit tremendous conservation potential. The paper notes that technology improvement occurs gradually and the effect is profound over the long term. Further, the results validate the extent of output leakage in the energy sector thus highlighting domestic supply constraints. A high ratio of India’s energy imports-to-energy embedded in exports is observed which has implications from an environment perspective.

Keywords: energy, India, technological change, input-output, demand shift, decomposition analysis

Suggested Citation

Tandon, Anjali and Ahmed, Shahid, Decomposition of Energy Consumption in India: A Case of Output Leakage and Technology Improvement (2015). Available at SSRN: https://ssrn.com/abstract=2759279 or http://dx.doi.org/10.2139/ssrn.2759279

Anjali Tandon (Contact Author)

National Council of Applied Economic Research ( email )

Parisila Bhawan
11 - Indraprastha Estate
New Delhi, 110002
India

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

Register to save articles to
your library

Register

Paper statistics

Downloads
29
Abstract Views
232
PlumX Metrics