Do Energy Policies with Disclosure Requirement Improve Firms’ Energy Management? Evidence from Indian Metal Sector

Abstract

Climate change poses serious threats to mankind and biodiversity and the concerns have resulted in efforts from all nations. India alone is responsible for 6% of global CO₂ emissions with a significant contribution from energy-intensive industries. Energy policies with different compliance requirements have been introduced to lower firms’ emissions. Some policies require specific quantitative information to be disclosed, while others have more general requirements. However, the empirical evidence of the impact of different energy policies on emissions remains limited. This study, therefore, examines what role disclosure-based energy policies have on the decarbonization of firms. For this, the study builds and examines the emission profile of firms from the energy-intensive sector: metal sector. Further, using the economics of emission framework, it is argued that energy policy with disclosure requirements can reduce emissions. The study has implications for public policy and corporate managers.