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Journal of Quantitative Economics

, Volume 14, Issue 2, pp 283–300 | Cite as

Productivity, Energy Intensity and Output: A Unit Level Analysis of the Indian Manufacturing Sector

  • Santosh Kumar SahuEmail author
  • Himani Sharma
Original Article

Abstract

The objective of this study is to calculate total factor productivity and determine factors related to energy intensity for the pre-existing manufacturing plants in India, using data from the annual survey of industries from 2002 to 2008. We use Levinsohn and Petrin (Rev Econ Stud 70:317–342, 2003) technique to estimate total factor productivity. The results indicate that most of the industries achieved positive TFP growth except a few, and thus, within plant efficiency exists in the Indian manufacturing sector. In case of determinants of energy intensity, we found plants with higher TFP and higher output are energy efficient. Also, there exists a nonlinear relationship between energy intensity and output, which validates the productivity dilemma hypothesis for the Indian manufacturing sector.

Keywords

Total factor productivity Energy intensity Indian manufacturing sector 

JEL Classification

D2 D22 Q4 

Notes

Acknowledgments

An earlier version of this paper was presented in the tenth annual conference of Forum for Global Knowledge Sharing (Knowledge Forum) during November 27–28, 2015 at NIAS Bangalore campus. We gratefully acknowledge comments and suggestions from Prof. K. L. Krishna, Prof. B. N. Pandit, Prof. N. S. Siddharthan, Prof. K. Narayanan and Prof. B. Goldar. The earlier version of this paper is also a part of MSE working paper series. We would like to acknowledge Prof. N. Srinivasan, Dr. Hema for the initial comments on the paper. Last but not the least, we are grateful to the anonymous reviewers, who identified and suggested improvements in the earlier draft of this paper. The usual disclaimer applies.

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Copyright information

© The Indian Econometric Society 2016

Authors and Affiliations

  1. 1.Madras School of EconomicsChennaiIndia

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