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

Author(s)
Kala, Namrata
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Creative Commons Attribution 4.0 International license https://creativecommons.org/licenses/by/4.0/
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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.
Date issued
2020-10
URI
https://hdl.handle.net/1721.1/129808
Department
Sloan School of Management
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
ISSN
0034-6535

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