The Light and the Heat: Productivity Co-Benefits of Energy-Saving Technology | Zendy

Achyuta Adhvaryu | Zendy; Namrata Kala | Zendy; Anant Nyshadham | Zendy

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The Light and the Heat: Productivity Co-Benefits of Energy-Saving Technology

Author(s) -

Achyuta Adhvaryu,

Namrata Kala,

Anant Nyshadham

Publication year - 2019

Publication title -

the review of economics and statistics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 8.999

H-Index - 165

eISSN - 1530-9142

pISSN - 0034-6535

DOI - 10.1162/rest_a_00886

Subject(s) - productivity , payback period , agricultural economics , production (economics) , factory (object oriented programming) , energy consumption , consumption (sociology) , economics , environmental science , natural resource economics , environmental economics , econometrics , business , computer science , microeconomics , engineering , economic growth , electrical engineering , social science , sociology , programming language

We study the adoption of energy-efficient LED lighting in garment factories around Bangalore, India. Combining daily production line–level data with weather data, we estimate a negative, nonlinear productivity-temperature gradient. We find that LED lighting raises productivity on hot days. Using the firm's costs data, we estimate that the payback period for LED adoption is less than one-third the length after accounting for productivity co-benefits. The average factory in our data gains about $2,880 in power consumption savings and about $7,500 in productivity gains.

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