IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v69y2025i3d10.1007_s00181-025-02762-9.html
   My bibliography  Save this article

What determines green total factor productivity in the Indian manufacturing sector? A spatial–temporal analysis

Author

Listed:
  • Prerna Thapliyal

    (Indian Institute of Technology Roorkee)

  • Rachita Gulati

    (Indian Institute of Technology Roorkee
    Asian Development Bank Institute)

  • Dinesh Kumar Nauriyal

    (Indian Institute of Technology Roorkee)

Abstract

This paper examines green total factor productivity (TFP) growth in the Indian manufacturing sector using the state-level data from 2005 to 2018. We treated greenhouse gas emissions as undesirable output when estimating green TFP using the Global Malmquist Luenberger Productivity Index. Further, the panel spatial econometric model is employed to predict the spillover effects of environmental regulations and other factors on green TFP. The results reveal that technological progress enhanced green productivity by 0.3 percent on average, with significant inter-state heterogeneity. Overall, environmental regulations have a significant inverted-U-shaped and nonlinear effect on green productivity in the Indian manufacturing industry. When an inverse distance matrix is used in conjunction with the space- and time-fixed spatial Durbin model, regulations also generate spatial spillovers. Additionally, economic development, urbanization, and energy intensity have been identified as potential determinants influencing green productivity. We recommend policies to sustain growth in the sector.

Suggested Citation

  • Prerna Thapliyal & Rachita Gulati & Dinesh Kumar Nauriyal, 2025. "What determines green total factor productivity in the Indian manufacturing sector? A spatial–temporal analysis," Empirical Economics, Springer, vol. 69(3), pages 1079-1116, September.
    • Handle: RePEc:spr:empeco:v:69:y:2025:i:3:d:10.1007_s00181-025-02762-9
    DOI: 10.1007/s00181-025-02762-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00181-025-02762-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00181-025-02762-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:69:y:2025:i:3:d:10.1007_s00181-025-02762-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.