The Light and the Heat: Productivity Co-Benefits of Energy-Saving Technology
Name
rest_a_00886.pdf
Description
Published version
Size
615.91 KB
Format
Adobe PDF
Checksum (MD5)
425f907c5c373a7f43c2ee602027b6a4
Author(s)
Kala, Namrata
Date Issued
October 2020
Journal
The Review of Economics and Statistics
Publisher
MIT Press - Journals
Citation
Adhvaryu, Achyuta et al. “The Light and the Heat: Productivity Co-Benefits of Energy-Saving Technology.” The Review of Economics and Statistics, 102, 4 (October 2020): 779-792 © 2020 The Author(s)
Version
Final published version
Abstract
We study the adoption of energy-efficient LED lighting in garment factories around Bangalore, India. Combining daily production linelevel data with weather data, we estimate a negative, nonlinear productivitytemperature 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.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution 4.0 International license
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1162/REST_A_00886
