Measuring Energy Intensity in Selected Manufacturing Industries in India

Abstract

The manufacturing industries are one of the energy intensive industries among other industries in India. Future economic growth significantly depends on the long-term availability of energy in increasing quantities from sources that are dependable, safe and environmentally friendly. Energy intensity is an indicator to show how efficiently energy is used in the economy. This study attempts to measure and analyze energy intensity of seven manufacturing industries of India viz.Paper, aluminium, iron&steel, fertilizer, chemical, glass and cement-at industry level and define energy intensity as the ratio of energy consumption to output. The purpose of this study is to understand the degree of intensity in energy consumption in those industries and observe whether there exists any inter industry variation in energy intensity over those industries. The study shows that seven manufacturing industries under our consideration have been depicting varied energy intensities which are well above the average intensity of the entire aggregate manufacturing industry. Moreover, energy intensity varies across industry over years. Therefore, energy intensity changes over time and varies significantly by types of economic activities.

Key words: Energy, intensity, India, industry, manufacturing.