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Research Seminar on Carbon Emissions Trend in the Indian Manufacturing Sector: A Decomposition and Decoupling Approach
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Meeting ID: 822 1343 0695  |  Passcode: 20240726

Abstract: There is a growing emphasis on fostering green growth and lowering carbon emissions in order to achieve sustainable economic development. This study uses the Tapio decoupling model and analyses the factors influencing changes in carbon emissions from manufacturing in India utilizing the Log mean Divisia Index (LMDI) technique. Furthermore, the nexus between carbon emission intensity, information and communication technology (ICT), total factor productivity (TFP), skill, and energy intensity has been analysed using the system-GMM approach. It is based on the plant-level Annual Survey of Industries (ASI) datasets for the organized manufacturing sector of India from 2001-02 to 2019-20 for the 21 major Indian states/UT. The findings reflect the presence of weak decoupling in the manufacturing sector both at the aggregate level and in states. This indicates that both output and emissions are increasing. However, output growth surpasses emission growth, which signifies an effort to transition towards more environmentally friendly production methods and enhanced energy efficiency. The output and population effect are found to be leading factors in carbon emissions, while energy intensity is found to be reducing the effect. Further, the system-GMM estimates show that ICT and energy intensity positively affect total factor productivity, while with an increase in carbon emission intensity, productivity declines. The study confirms the existence of an inverted N-shaped Kuznets curve in the sector. The present study will contribute to formulating energy and environmental strategies to reduce emissions and promote adopting cleaner energy sources. These efforts will facilitate the attainment of carbon neutrality and enhance energy efficiency within the sector.