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- W2036595295 abstract "THE purpose of this paper is to examine the substitution possibilities among energy inputs and other (non-energy) factors of production in response to price changes. We relate this study to India's manufacturing industries. This is of special interest since in the recent years Indian industries have been gradually moving towards a high-energy intensive structure of production. In 1970-71 the mining and the manufacturing sector accounted for 52.9 per cent of the total commercial energy consumed in India (in coal equivalent terms). [8, p. 1301. In this study we compute cross and own price elasticities of demand for all inputs. A knowledge of the substitution possibilities is of paramount importance in economic planning. Consider, for instance, three situations. First, the effect of rising energy prices will tend to raise the demand for capital if capital and energy are substitute inputs. Second, if energy and capital are complements the higher price for energy will tend to reduce the demand for both new capital equipment and energy. Thus the availability of cheap and ample supply of energy is significant in determining capital intensity and the future rates of capital formation. In the literature on economic development, this aspect of the choice of techniques has been, by and large, neglected. Third, if there are limited substitution possibilities between energy and other inputs the adjustment by industry to higher prices of energy may be quite difficult and costs of production may rise precipitously, necessitating a drastic change away from energy based production techniques. In section II of this paper we discuss the technique of analysis and describe the sources of data. Section III presents the results and section IV is confined to the concluding remarks." @default.
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- W2036595295 date "1981-12-01" @default.
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- W2036595295 title "The Relation Between Energy and Non-Energy Inputs in India's Manufacturing Industries" @default.
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- W2036595295 doi "https://doi.org/10.2307/2098197" @default.
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