Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Determinants of Emission and Energy Intensities in Indian Organized Manufacturing Sector


Affiliations
1 Jawaharlal Nehru University, New Delhi, 110067, India
     

   Subscribe/Renew Journal


The emission and energy consumption in absolute form is not considered as a better measurement of emission intensity and energy intensity respectively. This paper estimates the factors which influence emission and energy intensity in the Indian manufacturing sector. For estimating these variables, the panel data analysis has been deployed across three manufacturing industry groups, viz., overall manufacturing sector, high emission-intensive industries and low emission-intensive industries. The random effect model highlights that an increase in energy intensity and material intensity leads to higher emission intensity. The study also reveals that the manufacturing sector does not support the Environmental Kuznets Curve hypothesis. Further, high emission-intensive industries are capital-intensive industries while less emission-intensive industries are labour-intensive industries. This raises the question about the technology used by the manufacturing sector, especially high emission-intensive industries.
Subscription Login to verify subscription
User
Notifications
Font Size

  • Ahluwalia, Isher J. (1991), Productivity and Growth in Indian Manufacturing, Oxford University Press, New Delhi.

  • Balakrishnan, P. and K. Pushpangadan (1994), Total Factor Productivity Growth in Indian Manufacturing: A Fresh Look, Working Paper No. 259, Centre for Development Studies, Trivandrum, Kerala.

  • Banga, Rashmi and Bishwanath Goldar (2004), Contribution of Services to Output Growth and Productivity in Indian Manufacturing: Pre and Post Reforms, Working Paper No.139, Indian Council for Research on International Economic Relations, New Delhi.

  • Basole, Amit, Deepankar Basu and Rajesh Bhattacharya (2014), Determinants and Impact of Subcontracting: Evidence from India’s Informal Manufacturing Sector, Indian Institute of Management, Calcutta, Working Paper No.747.

  • Coelli, Tim (1996), A Guide to DEAP Version 2.1: A Data Envelopment Analysis (Computer) Program, CEPA Working Paper 96/08, University of New England, Australia.

  • Das, D. K. and A.A. Erumban (2010), Measuring Industry Level Capital Input for India, First World KLEMS Conference, Harvard University, August 2010.

  • Das, D.K (2004), Manufacturing Productivity under Varying Trade Regimes: 1980-2000, Economic and Political Weekly, 39(5): 423-433.

  • Das, D.K. and Gunajit Kalita (2009), Are Labour-Intensive Industries Generating Employment in India? Evidence from Firm Level Survey, The Indian Journal of Labour Economics, 52(3): 411-432.

  • Deb, Arnab K. and Subhash C. Ray (2013), Economic Reforms and Total Factor Productivity Growth of Indian Manufacturing: An Inter-State Analysis, University of Connecticut, Department of Economics Working Paper Series No. 4.

  • Goldar, B. (1986), Productivity growth in Indian industry, New Delhi: Allied Publishers.

  • ---------- (2004), Productivity Trends in Indian Manufacturing in the Pre and Post Reforms Period, Indian Council for Research on International Economic Relations, New Delhi, Working Paper No. 137.

  • ---------- (2010), Energy Intensity of Indian Manufacturing Firms: Effect of Energy Prices, Technology and Firm Characteristics, Institute of Economic Growth, University of Delhi, India.

  • Goldar, B. (2015), Productivity in Indian Manufacturing (1999-2011): Accounting from Imported Material Input, Economic and Political Weekly, 50(35): 104-111.

  • Goldar, B. and A. Kumari (2003), Import Liberalization and Productivity Growth in Indian Manufacturing Industries in the 1990s, The Developing Economies, 41(4): 436-460.

  • Goldar, B., D.K. Das and A.A. Erumban (2011), Productivity Growth in India, India-KLEMS Project Presentation at the First Asia KLEMS Conference July 27, 2011, Tokyo, Japan.

  • Gupta, Manish and Ramprasad Sengupta (2012), Energy Savings Potential and Policy for Energy Conservation in Selected Indian Manufacturing Industries, Working Papers 12/105, National Institute of Public Finance and Policy, New Delhi.

  • IPCC (2006), 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 2 Energy, Intergovernmental Panel of Climate Change, Geneva, Switzerland.

  • Kathuria, Vinish, Rajesh S.N. Raj and Kunal Sen (2013), Productivity Measurement in Indian Manufacturing: A Comparison of Alternative Methods, Journal of Quantitative Economics, 11(1 & 2): 148-179.

  • Kumar, Alok (2003), Energy Intensity: A Quantitative Exploration for Indian Manufacturing, Indira Gandhi Institute of Development Research, Mumbai, Working Paper, No.152.

  • Kumar, S. (2006), A Decomposition of Total Productivity Growth: A Regional Analysis of Indian Manufacturing Growth, International Journal of Productivity and Performance Management, 55(3): 311-331.

  • Mahadevan, R. (2003), To Measure or Not to Measure TFP Growth?, Oxford Development Studies, 31(3): 365-378.

  • Rath, Badri Narayan and S. Madheswaran (2010), Did Productivity Converge in Manufacturing Sector Across Indian States?, Regional and Sectoral Economic Studies, 10(2): 93-108.

  • Ray, Binay Kumar and B. Sudhakara Reddy (2007), Decomposition of Energy Consumption and Energy Intensity in Indian Manufacturing Industries, Working Paper, Indira Gandhi Institute of Development Research, Mumbai.

  • Sahu, S.K. and K. Narayanan (2009), Determinants of Energy Intensity in Indian Manufacturing: An Econometric Analysis, http://www2.gsid.nagoya-u.ac.jp/blog/anda/files/2011/08/59 sks_kn_anda_dis_paper.pdf.

  • ---------- (2010), Decomposition of Industrial Energy Consumption in Indian Manufacturing: The Energy Intensity Approach, Munich Personal RePEc Archive (MPRA) Paper No. 21719.

  • ---------- (2011), Determinants of Energy Intensity in Indian Manufacturing Industries: A Firm Level Analysis, Eurasian Journal of Business and Economics, 4(8): 13-30.

  • ---------- (2013), Carbon Dioxide Emissions from Indian Manufacturing Industries: Role of Energy and Technology Intensity, Working Paper. 82, Madras School of Economics, Chennai.

  • Trivedi, P., A. Prakash and D. Sinate (2000), Productivity in Major Manufacturing Industries in India: 1973-74 to 1997-98, Development Research Group, Reserve Bank of India, Study No. 20.

  • Trivedi, Pushpa (2004), An Inter-state Perspective on Manufacturing Productivity in India: 198081 to 2000-01, Indian Economic Review, 39(1): 203-237.

  • Virmani, Arvind and Danish A. Hashim (2011), J-Curve of Productivity and Growth: Indian Manufacturing Post-Liberalization, IMF Working Paper, No. 163.


Abstract Views: 488

PDF Views: 0




  • Determinants of Emission and Energy Intensities in Indian Organized Manufacturing Sector

Abstract Views: 488  |  PDF Views: 0

Authors

Rahul Ranjan
Jawaharlal Nehru University, New Delhi, 110067, India

Abstract


The emission and energy consumption in absolute form is not considered as a better measurement of emission intensity and energy intensity respectively. This paper estimates the factors which influence emission and energy intensity in the Indian manufacturing sector. For estimating these variables, the panel data analysis has been deployed across three manufacturing industry groups, viz., overall manufacturing sector, high emission-intensive industries and low emission-intensive industries. The random effect model highlights that an increase in energy intensity and material intensity leads to higher emission intensity. The study also reveals that the manufacturing sector does not support the Environmental Kuznets Curve hypothesis. Further, high emission-intensive industries are capital-intensive industries while less emission-intensive industries are labour-intensive industries. This raises the question about the technology used by the manufacturing sector, especially high emission-intensive industries.

References





DOI: https://doi.org/10.21648/arthavij%2F2015%2Fv57%2Fi3%2F109158