Analysing Factors Influencing Energy Intensity of Indian Cement Industry

Abstract

India is a fast growing economy, with a considerable dependence on energy resources. Energy resources mainly comprise of fossil fuels that are highly emission intensive. In order to move towards sustainable development, it is important to reduce emissions. Since a sizable amount of emissions gets generated from the use of energy resources, it is essential to use energy more efficiently and reduce energy intensity. In India the industrial sector is the biggest consumer of energy and hence energy intensity of this sector has to be improved. To achieve this, Bureau of Energy Efficiency and Ministry of Power launched the Perform-Achieve-Trade scheme for 8 most energy intensive industries in India. This study was conducted to analyse the impact of the Perform-Achieve-Trade scheme on the energy intensity of the Indian Cement Industry, which was one of the eight energy intensive industries. Effect of other determinants like FDI, Domestic R&D, Imports and Exports were also estimated. The paper does a panel data study for the years 1997-2015. Results suggest that BEE’S PAT scheme has been successful for the Cement industry as the designated consumers have lower energy intensity on an average during the periods this scheme was announced and implemented