The effects of carbon dioxide emission intensity of manufacturing firms in India on importing will be discussed in a La Follette School seminar Tuesday, February 3, from noon to 1:20 p.m. in Room 1199 of Nancy Nicholas Hall, 1300 Linden Drive, home of the university's School of Human Ecology.
Geoffrey Barrows, a Ph.D. candidate in agricultural and resource economics at the University of California, Berkeley, will speak.
Recent research has argued that export market access encourages firms to upgrade technology, which lowers the emission intensity of production; however, data limitations confound previous attempts to separately identify productivity impacts from simultaneous changes in prices and product-mix. Barrows' will present a model of how these alternative channels could also explain the results documented in the literature. His analysis uses a highly detailed production dataset of large Indian manufacturing firms that contains information on physical units of inputs and outputs by product. He and his co-author decomposed the overall firm impact into three components – prices, product-mix, and technology. They identify export impacts at the firm level from import demand shocks of foreign trading partners. They find that prices systematically bias down estimates of emission intensity in value, that firms adjust emission intensity in quantity through changing output shares across products, but that firms do not lower emission intensity within products over time (technology). The results imply that the productivity benefits from market integration alone are not enough to induce clean technology adoption.
The La Follette School's seminar schedule is available online.