Reduction in Carbon Emissions Intensity and Impact on Export Competitiveness: Evidence from Indian Manufacturing Firms

摘要

India's organized manufacturing sector experienced a 11% fall in its carbon di oxide (CO_2) emissions intensity during 2009-2012, while a majority of the manufacturing plants achieved over a 30% fall during the corresponding period. How did such a reduction in CO_2 emissions intensity affect the export competitiveness of Indian manufacturing firms? Using firm-level data for 2009-2013, this paper attempts to empirically answer that question. It is found that large firms and capital intensive firms have achieved a relatively faster decline in CO_2 emissions intensity and that containment of CO_2 emissions in manufacturing firms did not cause any major loss in their export competitiveness. Rather, it is found to be positively associated with increases in exports.