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Publisher: Journals Gateway
The Review of Economics and Statistics (2020) 102 (4): 779–792.
Published: 01 October 2020
AbstractView article PDF
We study the adoption of energy-efficient LED lighting in garment factories around Bangalore, India. Combining daily production line–level data with weather data, we estimate a negative, nonlinear productivity-temperature 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.
Includes: Supplementary data