This paper studies the relative contributions of the scale, structural and intensity effects on the total change of electricity consumption in 18 major states in India using the Laspeyres-based Parametric Divisia Method and the Simple Average Parametric Divisia Method in period-wise decomposition analysis. It also ranks states according to the proportionate values of the three effects with respect to the total change in electricity consumption. In this context, the paper proposes relying on the Divisia index rather than simple adding up methods. This analysis is based on secondary cross section data of the sectoral electricity consumption and sectoral output share for three benchmark years, 1990-91, 1995-96 and 2000-01. In the study, large variations among the states have been found in the identified effects for the early 1990s and post 1990s.
