How to Promote Energy Efficiency in Small Enterprises? an Economic Analysis of Small Enterprise Clusters in India‪.‬

Abstract This paper probes the role of labour and energy intensity in the economic performance of small enterprises with reference to brick making in Malur, foundries in Belagaum, rice mills in Raichur and Oil mills in Challakere in Karnataka state of India. The study found that small enterprises where labour productivity was higher and energy intensity was lower, achieved higher returns as compared to those where labour productivity was lower and energy intensity was higher. This implies that when technology is similar in small enterprises, where labour and energy inputs are complements, improving labour skills and efficiency can be an important strategy for improving energy efficiency, achieving higher returns and enhancing competitiveness.