Energy Intensity: A Quantitative Exploration for Indian Manufacturing

IGIDR Working Paper No. 152

15 Pages Posted: 6 Jan 2004

See all articles by Alok Kumar

Alok Kumar

Indira Gandhi Institute of Development Research (IGIDR) - Economics

Date Written: November 13, 2003

Abstract

An econometric analysis of industry energy intensity is presented in this paper. The overall purpose of this study is to increase the understanding of the factors that are influencing industrial energy intensity. In this paper we have attempted to identify and measures the factors behind the firm level energy efficiency. Using an econometric approach that identifies source of variation in energy intensity we find an inverse relationship between energy intensity and firm size - this may be due to economies of scale - bigger firm size need not be associated with higher energy intensity. The analysis also brings out the finding that ownership type is also an important determinant of energy intensity. We find that foreign owned firms exhibit a higher level of technical efficiency and so are less energy intensive. Results do confirmed that state owned enterprises are more energy intensive in all industries during the period of the study. We find that R&D activities are important contributors to the decline in firm-level energy intensity. We also identified that different industries exhibit different levels of energy intensity.

Keywords: Energy Intensity, Panel data analysis

JEL Classification: B23,Q4

Suggested Citation

Kumar, Alok, Energy Intensity: A Quantitative Exploration for Indian Manufacturing (November 13, 2003). IGIDR Working Paper No. 152. Available at SSRN: https://ssrn.com/abstract=468440 or http://dx.doi.org/10.2139/ssrn.468440

Alok Kumar (Contact Author)

Indira Gandhi Institute of Development Research (IGIDR) - Economics ( email )

Film City Road, Santosh Nagar
Mumbai 400065 Maharashtra
India
91 982 025 7651 (Phone)
91 222 840 2752 (Fax)

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