AIR POLLUTION ASSOCIATED WITH ENERGY USE IN A SMALL INDUSTRY CLUSTER: INFLUENTIAL FACTORS AND MITIGATION STRATEGIES

摘要

Small Scale Industries (SSIs) occupy a position of strategic importance in Indian economy in view of their large number and notable contribution to employment generation, industrial production, GDP and exports. At the same time, they are also one of the highly polluting and waste generating sources in the country. Most of these environmental degradations are concerned with the use of energy in one way or the other. Though energy utilized and its associated environmental implications are negligible at individual firm level, it becomes substantial when SSIs, especially energy intensive ones, cluster in a geographical location. This paper deals with energy consumption and the associated environmental pollution of one such SSI cluster in the State of Karnataka, South India. Based on the primary data pertaining to 42 iron foundry units, the "Energy Consumption Pattern" is studied and air pollution due to fuel combustion is estimated in terms of Green House Gas (GHG) and others using Intergovernmental Panel on Climate Change (IPCC) guidelines. The factors influencing variation in energy efficiency, which has a direct implication on environmental pollution, is analyzed adopting a hypothetical framework and is duly validated using empirical data from the field. It comprised a priori identification of four major factors viz., Technical (TF), Economic (EF), Human Resource (HRF) and Organizational & Behavioural (OBF). Multiple regression analysis is performed for assessing the significance and relative importance of each of these factors in explaining the variation in energy efficiency levels. Further, key variables affecting energy efficiency are identified through ANOVA analysis. The results suggest that while HRF and EF are significant at the factor level, 'labour skill' and 'capacity utilization' are crucial at the variable level for improving energy (and hence environmental) performance in this cluster. This implies the need for energy and environment development initiatives to address human resource and economic factors on priority by improving 'labour skill level' and increasing 'capacity utilization' to bring about discernible positive changes.