Energy-efficient growth for sustainability: an empirical analysis of its determinants in industries

Soni, S and Mungila Hillemane, BS (2024) Energy-efficient growth for sustainability: an empirical analysis of its determinants in industries. In: International Journal of Energy Sector Management .

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Abstract

Purpose: In the process of industrial growth, when existing industries go for technology upgradation and new modernised industries emerge, both capital intensity and energy demand of overall industry tend to rise steadily. This poses a serious challenge for sustainable development objectives. Towards this end, enhancing energy efficiency of individual industries is the only remedy. Against this backdrop, the study aims to probe the trends in capital intensities and energy efficiencies of individual industries in India. Design/methodology/approach: This study uses panel data regression analysis on data of two-digit industries from 1980/1981�2016/2017. The statistical analysis includes relevant macroeconomic variables derived from the literature to ascertain the drivers of energy efficiency in industries. Findings: The results brought out that capital deepening due to technology upgradation and modernisation and capital productivity growth are the decisive determinants of energy efficiency growth. Furthermore, the ever-increasing fuel price motivated industries to conserve energy on a steady basis, supplemented by energy conservation-specific policy interventions. Research limitations/implications: This study recommends policy initiatives to ascertain and address technology gaps industry-wise, so that its subsequent efficient capital utilisation, and energy conservation measures of industries would result in energy efficiency growth in industry. The policy must focus on energy-efficient capital intensification in fabricated metals, leather, textile and wood industries that are found less-energy-efficient despite being less-capital-intensive. Originality/value: This study empirically explores the capital efficiency of industries by investigating the interaction between capital intensity and energy efficiency at a two-digit industry level. It explores the determinants of energy efficiency and proposes industry-specific policies for energy-efficiency-enhancement of the overall industry. © 2024, Emerald Publishing Limited.

Item Type:	Journal Article
Publication:	International Journal of Energy Sector Management
Publisher:	Emerald Publishing
Additional Information:	The copyright for this article belongs to Emerald Publishing.
Keywords:	Energy utilization; Regression analysis; Sustainable development; Textile industry, Capital; Capital intensity; Design/methodology/approach; Empirical analysis; Energy demands; Energy efficient; India; Industrial growth; Panel data; Technology upgradation, Energy efficiency
Department/Centre:	Division of Interdisciplinary Sciences > Management Studies
Date Deposited:	28 May 2024 04:36
Last Modified:	28 May 2024 04:36
URI:	https://eprints.iisc.ac.in/id/eprint/85024

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