NATIONAL BUREAU OF ECONOMIC RESEARCH
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Energy Productivity and Energy Demand: Experimental Evidence from Indian Manufacturing Plants

Nicholas Ryan

NBER Working Paper No. 24619
Issued in May 2018
NBER Program(s):Development Economics, Environment and Energy Economics

This paper studies a field experiment among energy-intensive Indian manufacturing plants that offered energy consulting to raise energy productivity, the amount plants can produce with each unit of energy. Treatment plants, after two years and relative to the control, run longer hours, demand more skilled labor and use 9.5 percent more electricity (standard error 7.3 percent). I assume that the treatment acted only through energy productivity to estimate the plant production function. The model estimates imply that energy complements skill and capital and that energy demand therefore responds more strongly to a productivity shock when plants can adjust these inputs.

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Document Object Identifier (DOI): 10.3386/w24619

 
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