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Energy Use Efficiency in Indian Cement Industry: Application of Data Envelopment Analysis and Directional Distance Function

 
Sabuj Kumar Mandal (Author) S Madheswaran (Author) Working Paper
Synopsis The present paper aims at measuring energy use efficiency in Indian cement industry and estimating the factors explaining inter-firm variations in energy use efficiency. Within the framework of production theory, Data Envelopment Analysis (DEA) and directional distance function (DDF) have been used to measure energy use efficiency.  Using data from electronic CMIE PROWESS data base for the years 1989-90 through 2006-07, the study first estimates energy efficiency and then compares the energy efficiency across firms in the Indian cement industry. Empirical results suggest that there is enough scope for the Indian cement firms to reduce energy uses, though this potential for energy saving varies across firms. A second-stage regression analysis reveals that firms with larger production volume have higher energy efficiency scores and that age of the firms does not have any significant impact on energy use efficiency. Also, higher quality of labor force associates with higher energy use efficiency. Finally, Energy Conservation Act, 2001, has not yet had any significant impact on energy use efficiency.
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About the author

Sabuj Kumar Mandal

Dr. Sabuj Kumar Mandal completed his B.Sc (Economics) from Scottish Church College, Kolkata and M.Sc (Economics with specialization in Statistics and Econometrics) from University of Calcutta in 2002 and 2004 respectively. He has completed his doctoral research from Institute for Social and Economic Change, Bangalore and in 2010 University of Mysore awarded him Ph.D in economics for his thesis entitled “Energy and Productivity Growth: A Study of Indian Cement Industry”. His teaching and research interests lie in a variety of areas like, Microeconomics, Industrial Economics, Applied Game Theory, Behavioral Economics, Applied Econometrics and Energy & Environmental Economics. He is enthusiastic in applying Stochastic Frontier Models and Data Envelopment Analysis for performance analysis and benchmarking.

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Bibliographic information

Title Energy Use Efficiency in Indian Cement Industry: Application of Data Envelopment Analysis and Directional Distance Function
Format Softcover
Date published: 31.12.2009
Edition 1st ed.
Language: English
isbn 8177911864
length 20p., Illustrations; 30cm.