Decomposition Of Energy Consumption In Selected Manufacturing Industries of Haryana: A Period-Wise Analysis

This study examines the drivers of changes in energy consumption across twelve highly energy-intensive manufacturing industries in Haryana, India, over the period 2008–09 to 2022–23. Using the Log Mean Divisia Index (LMDI) method within an additive framework, the analysis decomposes total energy consumption changes into three effects: activity, structural, and intensity. Period-wise decomposition approach has been employed to provide a comprehensive understanding of long-term trends. The period-wise results reveal that the activity effect is the dominant contributor, accounting for 89.29 percent of the total change in energy use, driven largely by industrial growth and rising production levels. The structural effect contributes 16.80 percent, indicating shifts in the composition of industries that generally increased energy consumption. The intensity effect, at –6.10 percent, suggests modest improvements in energy efficiency, though insufficient to offset the strong upward pressures from activity and structural factors. The findings underscore that while energy efficiency improvements have occurred, they have been overshadowed by the scale of industrial expansion.