Energy efficiency and technology management in Indian industry

Abstract

Of the total final energy consumed in India, the industrial sector accounts for about 27%, of which the 13 selected industries consumes about 66% (2004-2005 figures). The largest energy users in the manufacturing sector are sub sectors like chemicals and petrochemicals, iron and steel, pulp and paper and cement industries. Industrial output in developing countries like India continues to expand owing to rising populations and catching up on economic growth. This can result in higher energy use energy provided primarily by the combustion of fossil fuels and thereby higher carbon-dioxide (CO2) emissions. newlineThis study aims at developing policies for energy efficiency by observing the changes of energy use in Indian manufacturing sector during the period 1992 2005. It also aims to investigate CO2 mitigation options for energy-related emissions in this sector. The study uses decomposition analysis to assess the effect of the changes in energy consumption and the level of CO2 emission. The study also investigates energy efficiency improvement strategies and the use of economic instruments to mitigate CO2 emissions in the manufacturing sector. newlineIn this study we examine almost all the sub-sectors of manufacturing sector, i.e. Aluminum, Iron and Steel, Copper, Cement, Chemical, Mining, Pulp and paper, Transport equipment, Textile, Beverage and Tobacco, Food products, and other non-metals for the period 1992 2005. The results show that technical effect and structural effect are important factors that affect both energy and emission intensities, with later having two to three times more impact than former. The increase in aggregate energy consumption over the period 1992 2005 was mainly driven by the output effect. A major priority for energy efficiency improvements was found to be in the textile and the paper and chemical industries. newlineThe study has analysed technical efficiency of production and energy intensity in selected industries. The factors that affect technical efficiency of cement firm are age of the firm, capacity