Measuring Structural Change and Energy Use in Indian Economy : An Input-Output Approach
This book focuses on the link between changing structure of the Indian economy and energy use, which is of immense importance in view of the possible substitutions across different fuel types, within industries and processes, to cleaner fuels which are efficient or less emitting. The book analyses various aspects related to energy use such as the changing sectoral interdependence of energy sectors in the economy, sources of changes in energy use over time, and the implications in terms of changing basket of goods and services traded by India, internationally. Through an application based approach, by using tools for economic analysis to study energy related issues, the book studies the impact of policy reforms using the transaction flows across sectors in an economy-wide framework. The time frame of analysis in the book covers policy changes implemented during the first and second generation reforms which had focus on output expansion and efficiency improvement in the Indian economy, respectively. The authors make a qualification to consider electricity generated from primary energy sources, particularly the hydroelectricity, as a separate source of energy use. This methodological consideration in the analysis contributes not only through a wider coverage of energy sources but also improves the precision of computations used to evaluate changes in energy intensity of different sectors and the overall economy. Analysis in the book underpins the technological changes resulting from inter-fuel substitution between primary and secondary sources of energy use. The analysis in the book also provides insights on energy embodied in the consumption and trade basket of India. The book notes that foreign trade of an economy can have unintended implications on energy use through transfer of energy manifested indirectly in the non-energy transactions, thus emphasising on the energy deficit of the Indian economy due to imports of energy embodied in non-energy sectors. The book serves readers across academia, research and policy makers through informed reading from the quantified facts based on economic models. It assists scholars to strengthen their understanding, learning and application of a technique. It is also helpful for the reader to apply the theory into practice