Researchers at the Indian Institute of Technology (IIT), Madras have suggested environmental regulations to increase energy efficiency in the manufacturing sector.
The suggestion is after a research carried out in collaboration with international scientists using the data for 15 years from 2000 to 2015. The study report suggested the need for a green domestic policy along with Foreign direct investment for improving energy efficiency in the manufacturing sector.
The study emphasised the use of adopted technology, linkage between tax and energy efficiency to promote renewable energy, and tax credit or exemption for firms improving energy efficiency.
The researchers also opined that export participation and Foreign direct investment will help the energy efficiency and improve the economic conditions of the country as such.
Assistant Professor in Humanities and Social Sciences Department of IIT Madras, Santosh Kumar Sahu headed the research team from IIT Madras. Dr Ajay Kumar from Emylon Business School, France, and Kim Hua Tan from Nottingham University Business School, United Kingdom were the foreign collaborators.
The research team said that the study was primarily aimed to find out whether it was right to levy more tax on firms to reduce greenhouse emissions.