Energy Efficiency in India’s Iron and Steel Industry: A Firm-level Data Envelopment Analysis
Abstract
India’s national mission to improve energy efficiency focuses on en-
hancing the efficiency in its most energy-intensive industries. Motivated
by this mission, we measure and analyze energy efficiency in the coun-
try’s iron and steel industries applying data envelopment analysis using
firm-level panel data over the period 2004-2012. The results show that
the energy efficiency of India’s iron and steel industries has improved
and energy intensity has declined during the study period. However,
there is a large potential for these industries to further reduce energy use.
The results of the regression analysis obtained using panel data indicate
that larger firms tend to have higher energy efficiency. In addition, labor
productivity improves energy use efficiency. Improvements in energy ef-
ficiency, particularly in small and medium firms should be encouraged
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