* Corresponding author. Tel.: #81-298-535097. E-mail address: tiwari@sk.tsukuba.ac.jp (P. Tiwari). Energy Policy 28 (2000) 771}778 An analysis of sectoral energy intensity in India Piyush Tiwari* Institute for Policy & Planning Sci., University of Tsukuba, Tsukuba, 305 8573 Japan Received 18 December 1999 Abstract The paper uses an input}output framework to calculate energy intensities for di!erent sectors in Indian economy. The overall coal intensity has declined during 1983}1990 but oil and electricity intensities have increased during 1983}1990. The results indicate that sectors like coal tar products, wool, silk, synthetic textiles, non-ferrous metals, paper and paper products, leather and leather products, non-metallic mineral products have worsened during 1983}1990. Sectors like cement, fertilizer, etc. have become energy e$- cient. 2000 Elsevier Science Ltd. All rights reserved. Keywords: Energy intensity; Input}output model 1. Introduction The energy requirement of an economy is sensitive to the rate of economic growth and energy intensity of producing sectors. The energy intensity of producing sectors is a function of technological progress and varies from sector to sector. Indian domestic energy resources are highly utilized and the economy is dependent on imports particularly of petroleum products. The supply side of energy, i.e. its production and distri- bution aspects are well researched. The conclusion de- rived from most of the supply side studies indicates that it is not possible to increase the supply because every addi- tional unit of energy production is costly (Planning Com- mission, 1997). In this context, it is important to analyze sectoral energy intensity in Indian economy. This paper uses a static input}output (I}O) framework to estimate energy intensities of various sectors of Indian economy. We use I}O tables for the years 1983}1984 and 1989}1990 (CSO, 1990) to calculate direct and di- rect#indirect (referred as total energy in this paper) energy intensities. Rest of the paper is organized as fol- lows. Section 2 discusses the energy}economy linkage. In Section 3, we discuss the modeling framework. The data and the methodology to transform the data are discussed in Section 4. Results are presented in Section 5. Section 6 concludes the discussion. 2. Energy}economy linkages The total commercial energy supplies in India in- creased from 20 MTOE (million tonnes of oil equivalent) in 1950}1951 to about 246.4 MTOE in 1996}1997 (Planning Commission, 1997). Among the indigenously produced primary commercial fuels, the relative share of oil and gas has increased from 1.2% in 1950}1951 to 29% in 1996}1997, whereas the share of coal has declined from about 98% in 1950}1951 to 64% in 1996}1997 (Planning Commission, 1997). Coal continues to be the main source of primary com- mercial energy not only for direct energy use in industry but also for indirect use through power generation. Against this, the "nal commercial energy consumption increased from 19.76 MTOE in 1953}1954 to 162.4 MTOE in 1996}1997 at an implicit growth rate of 4.9% (Planning Commission, 1997). During the last four dec- ades, there have been changes in both the sectoral and fuel pattern of consumption. The relative shares of oil (20.9% in 1960}1961 to 47.7% in 1996}1997) and elec- tricity (5% in 1960}1961 to 17.1% in 1996}1997) in the total "nal commercial energy consumption has increased steadily over the years (Planning Commission, 1997). Since these "gures relate only to "nal commercial energy consumption, only the direct use of coal in industry, JEPO=698=Gracy=Venkatachala=BG 0301-4215/00/$ - see front matter 2000 Elsevier Science Ltd. All rights reserved. PII: S 0 3 0 1 - 4 2 1 5 ( 0 0 ) 0 0 0 5 1 - 3