IDEAS home Printed from https://ideas.repec.org/a/wsi/serxxx/v63y2018i02ns0217590817400173.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217590817400173
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0217590817400173?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
    2. 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.
    3. Sahu, Santosh & Narayanan, K, 2009. "Determinants of Energy Intensity: A Preliminary Investigation of Indian Manufacturing," MPRA Paper 16606, University Library of Munich, Germany.
    4. Sahu, Santosh & Narayanan, K, 2010. "Determinants of Energy Intensity in Indian Manufacturing Industries: A Firm Level Analysis," MPRA Paper 21646, University Library of Munich, Germany.
    5. Schneider, Malte & Holzer, Andreas & Hoffmann, Volker H., 2008. "Understanding the CDM's contribution to technology transfer," Energy Policy, Elsevier, vol. 36(8), pages 2920-2928, August.
    6. Sartaj Rasool Rather & S. Raja Sethu Durai & M. Ramachandran, 2015. "Price Rigidity, Inflation and the Distribution of Relative Price Changes," South Asian Journal of Macroeconomics and Public Finance, , vol. 4(2), pages 258-287, December.
    7. sowmya, 2015. "Health Shocks and Short-Term Consumption GrowthAuthor-Name: Sowmya Dhanaraj," Working Papers 2015-112, Madras School of Economics,Chennai,India.
    8. Murthy, N.S. & Panda, M. & Parikh, J., 1997. "Economic growth, energy demand and carbon dioxide emissions in India: 1990-2020," Environment and Development Economics, Cambridge University Press, vol. 2(2), pages 173-193, May.
    9. Brijesh C. Purohit, 2015. "Efficiency in Elementary Education in Urban India: An exploratory Analysis using DEA," Working Papers 2015-113, Madras School of Economics,Chennai,India.
    10. Theodore Papadogonas & John Mylonakis & Demosthenes Georgopoulos, 2007. "Energy consumption and firm characteristics in the Hellenic manufacturing sector," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 5(1), pages 89-96.
    11. Santosh K. Sahu & K. Narayanan, 2014. "CO2 Emission from Fossil Fuel Consumption and Technology Intensity," Review of Market Integration, India Development Foundation, vol. 6(3), pages 269-296, December.
    12. Sunil Paul & Sartaj Rasool Rather & M. Ramachandran, 2015. "Money and Inflation: Evidence from P-Star Model," Working Papers 2015-115, Madras School of Economics,Chennai,India.
    13. Santosh Kumar Sahu, 2014. "Energy Use Patterns and Firm Performance: Evidence from Indian Industries," Working Papers 2014-092, Madras School of Economics,Chennai,India.
    14. Santosh Kumar Sahu & K. Narayanan, 2013. "CO 2 emission and firm heterogeneity: a study of metals and metal-based industries in India," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 9(2), pages 110-127.
    15. Bishwanath Goldar, 2013. "Energy Use Efficiency of India’s Organised Manufacturing," Review of Market Integration, India Development Foundation, vol. 5(2), pages 131-154, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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).
    2. Danquah Jeff Boakye & Ishmael TIngbani & Gabriel Ahinful & Isaac Damoah & Venancio Tauringana, 2020. "Sustainable environmental practices and financial performance: Evidence from listed small and medium‐sized enterprise in the United Kingdom," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2583-2602, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bishwanath Goldar, 2010. "Energy Intensity of Indian Manufacturing Firms: Effect of Energy Prices, Technology and Firm Characteristics," Working Papers id:2483, eSocialSciences.
    2. Bishwanath Goldar & Yashobanta Parida & Deepika Sehdev, 2017. "Reduction in Carbon Emissions Intensity and Impact on Export Competitiveness: Evidence from Indian Manufacturing Firms," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 1-30, June.
    3. Herrerias, M.J. & Cuadros, A. & Luo, D., 2016. "Foreign versus indigenous innovation and energy intensity: Further research across Chinese regions," Applied Energy, Elsevier, vol. 162(C), pages 1374-1384.
    4. Santosh Kumar Sahu & Himani Sharma, 2016. "Productivity, Energy Intensity and Output: A Unit Level Analysis of the Indian Manufacturing Sector," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 283-300, December.
    5. Adom, Philip K. & Kwakwa, Paul Adjei, 2014. "Effects of changing trade structure and technical characteristics of the manufacturing sector on energy intensity in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 475-483.
    6. Herrerias, M.J. & Cuadros, A. & Orts, V., 2013. "Energy intensity and investment ownership across Chinese provinces," Energy Economics, Elsevier, vol. 36(C), pages 286-298.
    7. Sartaj Rasool Rather & S. Raja Sethu Durai & M. Ramachandran, 2015. "Price Rigidity, Inflation and the Distribution of Relative Price Changes," South Asian Journal of Macroeconomics and Public Finance, , vol. 4(2), pages 258-287, December.
    8. Yaya Keho, 2016. "Do Foreign Direct Investment and Trade lead to Lower Energy Intensity? Evidence from Selected African Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 1-5.
    9. Santosh Kumar, Sahu & K., Narayanan, 2011. "Energy Intensity and Firm Performance: Do Energy Clusters Matter?," MPRA Paper 43457, University Library of Munich, Germany.
    10. Santosh K. Sahu & K. Narayanan, 2014. "CO2 Emission from Fossil Fuel Consumption and Technology Intensity," Review of Market Integration, India Development Foundation, vol. 6(3), pages 269-296, December.
    11. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    12. Zheng, Yingmei & Qi, Jianhong & Chen, Xiaoliang, 2011. "The effect of increasing exports on industrial energy intensity in China," Energy Policy, Elsevier, vol. 39(5), pages 2688-2698, May.
    13. Liao, Hua & Wei, Yi-Ming, 2010. "China's energy consumption: A perspective from Divisia aggregation approach," Energy, Elsevier, vol. 35(1), pages 28-34.
    14. Karimu, Amin & Brännlund, Runar & Lundgren, Tommy & Söderholm, Patrik, 2017. "Energy intensity and convergence in Swedish industry: A combined econometric and decomposition analysis," Energy Economics, Elsevier, vol. 62(C), pages 347-356.
    15. Pottier, Antonin, 2022. "Expenditure elasticity and income elasticity of GHG emissions: A survey of literature on household carbon footprint," Ecological Economics, Elsevier, vol. 192(C).
    16. Adom, Philip Kofi, 2015. "Business cycle and economic-wide energy intensity: The implications for energy conservation policy in Algeria," Energy, Elsevier, vol. 88(C), pages 334-350.
    17. Hui Fang & Chunyu Jiang & Tufail Hussain & Xiaoye Zhang & Qixin Huo, 2022. "Input Digitization of the Manufacturing Industry and Carbon Emission Intensity Based on Testing the World and Developing Countries," IJERPH, MDPI, vol. 19(19), pages 1-28, October.
    18. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
    19. Alvarez-Herranz, Agustin & Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Cantos, José María, 2017. "Energy innovation and renewable energy consumption in the correction of air pollution levels," Energy Policy, Elsevier, vol. 105(C), pages 386-397.
    20. Vennemo, Haakon & Aunan, Kristin & He, Jianwu & Hu, Tao & Li, Shantong & Rypd3al, Kristin, 2008. "Environmental impacts of China's WTO-accession," Ecological Economics, Elsevier, vol. 64(4), pages 893-911, February.

    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

    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:wsi:serxxx:v:63:y:2018:i:02:n:s0217590817400173. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ser/ser.shtml .

    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.