Technical productivity analysis for cement industry at firm level

Abstract

This paper analyses the energy use in the manufacture of cement in India during 1992–2005. Cement manufacturing requires large amounts of various energy inputs. The most common types of energy carriers used are coal, electricity, natural gas and fuel oil. Over the years, the fuel use shift is less, but use of natural gas has decreased and that of electricity has increased. Using panel data, stochastic frontier production function method has been used to evaluate the efficiency of individual firms and industries across the years. The results show a significant decrease in energy as well as carbon intensities because of differences in production techniques.