CO2 Emission and Firm Heterogeneity: A Study of Metals & Metal based Industries in India

Industrial energy efficiency has emerged as one of the key issues in India. The increasing demand for energy that leads to growing challenge of climate change has resulted major issues. It is obvious that high-energy intensity leads to high carbon intensity of the economy. This paper is an attempt to estimate the firm level CO2 emissions for the metals and metal based industries in Indian manufacturing. Calculation of firm level emissions is carried out following IPCC reference approach methodology of Carbon Dioxide emission from fuel combustion. We tried to find out the inter-firm differences of CO2 emission in the metals and metal based industries. In finding out the determinants of CO2 emission at firm level we have examined whether the firm heterogeneity matters for the differences in emission at firm level. Data for this study is collated from the CMIE PROWESS online database from 2000-2008, IEA energy statistics and IPCC conversion factors for each of the fuel types.