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Carbon dioxide emissions from Indian manufacturing industries: role of energy and technology intensity

Author

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  • Sahu Santosh Kumar

    (Madras School of Economics)

  • Narayanan K.

    (Indian Institute of Technology)

Abstract

Industrial energy efficiency has emerged as one of the key issues in India. The increasing demand for energy that leads to growing challenge of climate change has led to major issues. This paper is an attempt to compute Carbon Dioxide (CO2) emission from fossil fuel consumption for firms in Indian manufacturing sector from 2000 to 2011 by adopting the IPCC Reference Approach. The contribution of this paper lies in estimating CO2 emission at the firm level and analyzing the factors that explain inter-firm variation in CO2 emission. The results indicate that there are differences in firm-level emission intensity and they, in turn, are systematically related toidentifiable firm specific characteristics. This study found size, age, energy intensity and technology intensity as the major determinants of CO2 emission of Indian manufacturing firms. In addition, capital and labour intensity of the firms are also related to the firms’ CO2 emission intensity. We conclude the short run policy implications should be aimed at encouraging firms to invest more in R&D and technology sourcing, and at long run firms should be able to adapt cleaner energy to reduce CO2 emission from the fuel consumption.

Suggested Citation

  • Sahu Santosh Kumar & Narayanan K., 2014. "Carbon dioxide emissions from Indian manufacturing industries: role of energy and technology intensity," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 1, pages 60-73.
    • Handle: RePEc:scn:031730:15688965
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    Cited by:

    1. Manish Gupta & Ramprasad Sengupta, 2013. "Energy Savings Potential and Policy for Energy Conservation in Selected Indian Manufacturing Industries," Review of Market Integration, India Development Foundation, vol. 5(3), pages 363-388, December.
    2. Santosh K. Sahu & Deepanjali Mehta, 2018. "Determinants Of Energy And Co2 Emission Intensities: A Study Of Manufacturing Firms In India," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 389-407, March.
    3. Bagchi, Prantik & Sahu, Santosh Kumar & Kumar, Ajay & Tan, Kim Hua, 2022. "Analysis of carbon productivity for firms in the manufacturing sector of India," Technological Forecasting and Social Change, Elsevier, vol. 178(C).

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    More about this item

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies

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