Indian paper industry can boost energy efficiency, impacting state economies.
The goal of the research was to measure energy efficiency in the Indian paper industry at the state level and understand why efficiency varies between states. The researchers used a complex statistical model called stochastic frontier analysis to estimate energy efficiency. They found that the structure of the industry and capital intensity positively impact energy efficiency, while labor productivity does not. Some states like Uttarakhand, Punjab, and Orissa perform well in energy efficiency, while others like Rajasthan, Jharkhand, and Goa perform poorly. This study is the first to use this method to measure energy efficiency in the Indian paper industry, showing that energy intensity may not always accurately reflect true energy efficiency.