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Complementary Inputs and Industrial Development: Can Lower Electricity Prices Improve Energy Efficiency?
The transition from traditional labor intensive to modern capital intensive production is a key factor for industrial development. Using half a million observations from Indian manufacturing plants, I analyze the effects of a secular decrease in industrial electricity prices through the lens of a model with technology choices and complementarities between electricity and capital inputs. Using instrumental variables, I show how lower industrial electricity prices can increase both labor productivity and electricity productivity. Apart from positive effects on firm economic and environmental performance, cost-price pass through significantly benefitted consumers, and the productivity improvements limited increases in carbon emissions.
Date:
21 October 2024, 14:15
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room C or https://zoom.us/j/97534799321?pwd=V2pOWGQ2N3l3WWg3eXFSK25hc0laQT09
Speaker:
Gregor Singer (London School of Economics)
Organising department:
Department of Economics
Part of:
Environment and Resource Economics Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Edward Valenzano
