What Drives Public Spending Efficiency in the Energy Sector? Insights From Indian States

This study aims to (1) investigate the efficiency of public spending in the energy sector across Indian states and (2) examine the key factors influencing this efficiency. The findings reveal significant disparities in energy sector efficiency among states and underscore the pivotal roles of governance and education in enhancing energy sector efficiency, as opposed to economic growth and fiscal deficit. Therefore, it is suggested that enhancing governance and education should be prioritized to improve energy sector efficiency in Indian states.