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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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.
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.
Appendix 19 B
2.1 Industry Codes and Description (2-Digit Industries)
- 15 :
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Manufacture of food products and beverages
- 16 :
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Manufacture of tobacco products
- 17 :
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Manufacture of textiles
- 18 :
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Manufacture of wearing apparel dressing and dyeing of fur
- 19 :
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Tanning and dressing of leather manufacture of luggage, handbags, saddlery, harness and footwear
- 20 :
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Manufacture of wood and products of wood and cork, except furniture, manufacture of articles of straw and plating materials
- 21 :
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Manufacture of paper and paper products
- 22 :
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Publishing, printing and reproduction of recorded media
- 23 :
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Manufacture of coke, refined petroleum products and nuclear fuel
- 24 :
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Manufacture of chemicals and products
- 25 :
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Manufacture of rubber and plastic products
- 26 :
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Manufacture of other non-metallic mineral products
- 27 :
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Manufacture of basic metals
- 28 :
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Manufacture of fabricated metal products, except machinery and equipments
- 29 :
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Manufacture of machinery and equipments N.E.C.
- 30 :
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Manufacture of office, accounting and computing machinery
- 31 :
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Manufacture of electrical machinery and apparatus N.E.C.
- 32 :
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Manufacture of radio, television and communication equipments and apparatus
- 33 :
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Manufacture of medical, precision and optical instruments, watches and clocks
- 34 :
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Manufacture of motor vehicles, trailers and semi-trailers
- 35 :
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Manufacture of other transport equipment
- 36 :
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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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