Abstract: Enhancing energy productivity in manufacturing is vital for achieving the Nationally Determined Contributions (NDCs). India’s Perform, Achieve, and Trade (PAT) scheme targets lowering the energy intensity of energy-intensive industries, many are classified as hard-to-abate. However, regional disparities in industrial structure, institutional framework, and infrastructure can constrain the effectiveness of such uniform, sector-specific energy policies. This study employs the club convergence approach to investigate energy productivity dynamics across seven industries and 21 Indian states and territories (S&Ts), using plant-level manufacturing data from the Annual Survey of Industries during 2000-2020. We find evidence of multiple convergence clubs within each technological classification and the PAT industries—namely aluminium, chemicals, fertilisers, iron and steel, paper, and textile—with cement being an exception. Subsequently, carbon intensity in PAT industries remains consistently higher than that of overall manufacturing, regardless of S&Ts club membership. Notably, higher-productivity clubs tend to exhibit lower emission intensity. The odds of joining higher-productivity clubs increase with initial energy productivity, income growth, service-to-GDP ratio, and urbanisation. In contrast, industrial concentration, a less diversified fuel mix, and transmission and distribution (T&D) losses lower this likelihood. These findings underscore the limitations of a uniform policy target within industries and highlight the need for region- and industry-specific interventions.

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Abstract:  Reducing carbon emissions remains central to addressing climate change, with energy consumption—driven by the fuel mix—playing a pivotal role in shaping emission levels. This study examines how Indian manufacturing industries respond to changes in factor and fuel prices, and identifies the channels through which emission intensity has evolved. Using a translog cost function framework, we estimate substitution elasticities based on plant-level data from the Annual Survey of Industries for the period 2000–2020. Our analysis reveals that both factors and fuels are generally substitutable. Energy-intensive industries exhibit higher own- and cross-price elasticities, which vary further when classified by technological intensity. The capital–labour relationship shows mixed patterns, acting as either substitutes or complements depending on the industry. Energy complements capital, while its interaction with labour and materials is more ambiguous. Among fuels, electricity is the only inelastic input; others—such as coal, petroleum, and natural gas—are more readily substitutable. Notably, coal strongly complements electricity, but not vice versa, reflecting a shift in the electricity mix towards nonthermal sources. Morishima elasticities also indicate varying degrees of substitution with other factors. Coal and electricity exhibit particularly strong responses to price changes. Similarly, petroleum products and natural gas increase in usage when prices fluctuate. Factor substitution contributes modestly to reducing emission intensity, primarily through shifts in the energy mix. While higher output tends to raise emission intensity, this effect is offset by budget constraints, technological advancements, and lagged energy responses. Overall, the findings suggest that a cleaner fuel mix, supported by technological innovation, can significantly ease the path toward achieving emission intensity reduction targets.

Abstract:  This study investigates the relative performance of India’s regions in terms of energy and environmental indicators. We use state-level economic and energy variables from 2005 to 2015 and assess the dynamic efficiency using the DEA-window analysis approach. We find that relative efficiency scores converge across geographical regions of India. States within a region show improvements in their performance with a mixed response to their respective scores over time. Results from the Super-SBM help us understand the relative efficiency score achieved by each region in a year. Higher values of shortages and T&D losses of electricity, tariff rates, and per capita carbon-equivalent emissions are the major barriers for the laggards. Over time, states have improved their performance and approached the frontier with a score closer to one. These findings suggest overall inequality across regions has reduced and emphasise the role of government intervention on efficiency-related frameworks to improve the regional sub-optimal utilisation of various inputs.

Abstract:  Public investment in energy plays a pivotal role in narrowing the financial gap in energy systems and in balancing the energy trilemma—energy security, energy equity, and environmental sustainability. This study examines the impact of public investment in energy (total, renewable, and non-renewable) on the energy trilemma in developing countries. Using fixed effects, IV-GMM, and quantile regression estimations with Driscoll-Kraay standard errors, based on data from developing economies over the period 2000–2023, reveals a positive effect of public investment on the energy trilemma. The analysis further explores the moderating roles of financial development and economic complexity, showing that stronger financial systems and robust economic foundations enhance the effectiveness of public energy investment in addressing the trilemma. Regression results also highlight that the positive effects of public investment on the energy trilemma are more pronounced at higher quantiles. Overall, the study underscores the need for tailored policy interventions, emphasizing the importance of reinforcing economic and institutional frameworks to effectively direct public investment in energy toward achieving a balanced energy trilemma in developing countries.