Decarbonizing India's Economy: The Role of Carbon Pricing in Reducing Carbon Intensity

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides first empirical analysis of internal carbon pricing and SBTs on carbon intensity in India, contributing to environmental disclosure literature.

🏢実務担当者:Offers insights for Indian firms on the limited effectiveness of internal carbon pricing and the importance of R&D for emission reduction.

🏛政策担当者:Suggests regulators should incentivize SBTs and R&D-driven decarbonization while improving internal carbon pricing mechanisms.

This study aims to investigate the relationship between carbon pricing mechanisms and carbon intensity among India's top 100 publicly listed companies, as reported by the Carbon Disclosure Project (CDP). It specifically investigates how internal carbon pricing, science-based targets (SBTs), corporate social responsibility (CSR), and research and development (R&D) investment influence carbon disclosure practices and environmental transparency. A total of 253 firm-year observations from 2015 to 2021 were collected from CDP reports, OSIRIS financial database, annual reports, and India's National CSR Portal. The study applies multiple linear regression analysis to assess the influence of the identified variables on carbon intensity, measured as total CO₂ emissions (Scope 1, 2, and 3) per unit of sales. Content analysis was employed to validate disclosure attributes aligned with stakeholder and legitimacy theories. The regression results show a significant negative relationship between R&D and carbon intensity, highlighting the potential of innovation in reducing emissions. Science-based targets and CSR investments, however, show a significant positive association with carbon intensity, suggesting that high-emission firms are more likely to adopt visible sustainability initiatives. Internal carbon pricing was found to have no statistically significant influence on emission intensity. The findings provide actionable insights for Indian regulators and global policymakers. Emphasis should be placed on incentivizing science-based targets and R&D-driven decarbonization strategies while making internal carbon pricing mechanisms more effective. Investors can play a crucial role by demanding transparency, while firms must enhance their sustainability reporting frameworks to overcome barriers to disclosure and strengthen stakeholder trust. This study contributes to the accounting and environmental disclosure literature by being the first of its kind to empirically analyze the effect of internal carbon pricing and SBTs on carbon intensity in the Indian context. It offers timely, evidence-based insights relevant to achieving Sustainable Development Goal 13 (Climate Action) and supports global efforts in transitioning toward low-carbon economies.

• openaire https://doi.org/10.54560/jracr.v15i3.610first seen 2026-05-05 19:06:35