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Does Energy Intensity Affect Labour Productivity in Indian Firms? Preliminary Estimates

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Energy Security and Development

Abstract

Micro, small and medium enterprises are viewed as engines of economic growth in India. The present study examines if energy is an important factor in productivity of firms using energy intensity as a measure of efficiency. Using firm-level data from 5760 micro, small, medium and large enterprises for 2007–2008, the study estimates the relationship among labour productivity, energy intensity, capital intensity, age and size of the firm. The results show that significant differences in energy efficiency exist among micro, small, medium and large enterprises, and highlight the scope for improving energy efficiency to improve productivity.

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Author information

Authors and Affiliations

  1. Department of Humanities and Social Sciences, IIT Bombay, Powai, 400076, Mumbai, India

    M. Mohan Ram, Haripriya Gundimeda & Vinish Kathuria

Authors
  1. M. Mohan Ram
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  2. Haripriya Gundimeda
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  3. Vinish Kathuria
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Corresponding author

Correspondence to M. Mohan Ram .

Editor information

Editors and Affiliations

  1. Indira Gandhi Institute of Development Research (IGIDR), Mumbai, Maharashtra, India

    B. Sudhakara Reddy

  2. Parthenope University of Napoli, Napoli, Italy

    Sergio Ulgiati

Appendices

Appendix: 19 A

Labour

Firms in India generally report only their total payments for wages and salaries, and do not report the total number of workers employed. Man days are calculated for each firm by dividing the payment of wages and salaries by average wage rate.

$$\text{Man days worked=}\frac{\text{Payment of wages and salaries}}{\text{Average wage rate}}$$

The data of Annual Survey of Industries (ASI) available at the three-digit level of industrial classification is used to calculate the average wage rate of the relevant industry group. The average wage rate is the ratio of total emoluments to workers to the total number of people engaged.

$$\text{Average wage rate (from ASI)=}\frac{\text{Total emoluments to the workers}}{\text{Total persons engaged}}$$

Appendix 19 B

2.1 Industry Codes and Description (2-Digit Industries)

15 :

Manufacture of food products and beverages

16 :

Manufacture of tobacco products

17 :

Manufacture of textiles

18 :

Manufacture of wearing apparel dressing and dyeing of fur

19 :

Tanning and dressing of leather manufacture of luggage, handbags, saddlery, harness and footwear

20 :

Manufacture of wood and products of wood and cork, except furniture, manufacture of articles of straw and plating materials

21 :

Manufacture of paper and paper products

22 :

Publishing, printing and reproduction of recorded media

23 :

Manufacture of coke, refined petroleum products and nuclear fuel

24 :

Manufacture of chemicals and products

25 :

Manufacture of rubber and plastic products

26 :

Manufacture of other non-metallic mineral products

27 :

Manufacture of basic metals

28 :

Manufacture of fabricated metal products, except machinery and equipments

29 :

Manufacture of machinery and equipments N.E.C.

30 :

Manufacture of office, accounting and computing machinery

31 :

Manufacture of electrical machinery and apparatus N.E.C.

32 :

Manufacture of radio, television and communication equipments and apparatus

33 :

Manufacture of medical, precision and optical instruments, watches and clocks

34 :

Manufacture of motor vehicles, trailers and semi-trailers

35 :

Manufacture of other transport equipment

36 :

Manufacture of furniture; manufacturing N.E.C.

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Mohan Ram, M., Gundimeda, H., Kathuria, V. (2015). Does Energy Intensity Affect Labour Productivity in Indian Firms? Preliminary Estimates. In: Reddy, B., Ulgiati, S. (eds) Energy Security and Development. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2065-7_19

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  • DOI: https://doi.org/10.1007/978-81-322-2065-7_19

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