Deepita Chakravarty: Energy and Labour Use in Andhra Pradesh Industry

The objective of this paper is to explore the possibilities of substitution between energy and labour in the registered manufacturing of Andhra Pradesh as a whole, as well as disaggregated manufacturing activities at the two-digit level during 1980-81 to 1997-98. The proportions of inputs used in production, such as labour and energy, are determined by the choice of technology on the one hand and substitution among inputs on the other. In this paper we do not estimate production functions to get the parameters of substitution or the nature of underlying technology. Instead, we directly look at factor intensities, input ratios and relative prices to gain insights into the possibilities of substitution (Working paper No. 46).