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Determinants Of Energy And Co2 Emission Intensities: A Study Of Manufacturing Firms In India

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  • SANTOSH K. SAHU

    (Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, Tamil Nadu, 600036, India)

  • DEEPANJALI MEHTA

    (#x2020;Madras School of Economics, Gandhi Mandapam Road, Kottur, Chennai, Tamil Nadu, 600025, India)

Abstract

This paper investigates determinants of energy and emission intensities of manufacturing firms in India, from 2000 to 2014. Given that Indian manufacturing sector is one of the world’s most polluting sectors in terms of CO2 emissions; we arrive at firm level determinants of energy and carbon dioxide emission intensities from consumption of three primary sources of energy, namely (1) Coal, (2) Natural Gas and (3) Petroleum. The results of the regression analysis suggest that there are inter-firm differences in energy and emission intensity. The results indicate that smaller and larger firms are both energy and emission intensive compared to medium sized firms. Similarly, firms spending more in research and development activities are found to be energy and emission efficient, compare to others. Hence, in the global competitive business environment, Government of India should carefully formulate policies suitable for the medium sized firms to make them energy and emission efficient.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:serxxx:v:63:y:2018:i:02:n:s0217590817400173
    DOI: 10.1142/S0217590817400173
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    More about this item

    Keywords

    Indian manufacturing; coal; natural gas; petroleum; IPCC reference approach;
    All these keywords.

    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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