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What determines green total factor productivity in the Indian manufacturing sector? A spatial–temporal analysis.

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Názov: What determines green total factor productivity in the Indian manufacturing sector? A spatial–temporal analysis.
Autori: Thapliyal, Prerna1 (AUTHOR), Gulati, Rachita1,2 (AUTHOR) rachita.gulati@hs.iitr.ac.in, Nauriyal, Dinesh Kumar1 (AUTHOR)
Zdroj: Empirical Economics. Sep2025, Vol. 69 Issue 3, p1079-1116. 38p.
Predmety: *ENVIRONMENTAL regulations, *TECHNOLOGICAL progress, *ECONOMIC development, *MANUFACTURING industries, GREENHOUSE gases, SUSTAINABILITY
Abstrakt: This paper examines green total factor productivity (TFP) growth in the Indian manufacturing sector using the state-level data from 2005 to 2018. We treated greenhouse gas emissions as undesirable output when estimating green TFP using the Global Malmquist Luenberger Productivity Index. Further, the panel spatial econometric model is employed to predict the spillover effects of environmental regulations and other factors on green TFP. The results reveal that technological progress enhanced green productivity by 0.3 percent on average, with significant inter-state heterogeneity. Overall, environmental regulations have a significant inverted-U-shaped and nonlinear effect on green productivity in the Indian manufacturing industry. When an inverse distance matrix is used in conjunction with the space- and time-fixed spatial Durbin model, regulations also generate spatial spillovers. Additionally, economic development, urbanization, and energy intensity have been identified as potential determinants influencing green productivity. We recommend policies to sustain growth in the sector. [ABSTRACT FROM AUTHOR]
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Databáza: Business Source Index
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Abstrakt:This paper examines green total factor productivity (TFP) growth in the Indian manufacturing sector using the state-level data from 2005 to 2018. We treated greenhouse gas emissions as undesirable output when estimating green TFP using the Global Malmquist Luenberger Productivity Index. Further, the panel spatial econometric model is employed to predict the spillover effects of environmental regulations and other factors on green TFP. The results reveal that technological progress enhanced green productivity by 0.3 percent on average, with significant inter-state heterogeneity. Overall, environmental regulations have a significant inverted-U-shaped and nonlinear effect on green productivity in the Indian manufacturing industry. When an inverse distance matrix is used in conjunction with the space- and time-fixed spatial Durbin model, regulations also generate spatial spillovers. Additionally, economic development, urbanization, and energy intensity have been identified as potential determinants influencing green productivity. We recommend policies to sustain growth in the sector. [ABSTRACT FROM AUTHOR]
ISSN:03777332
DOI:10.1007/s00181-025-02762-9