Abstract
The study aims to estimate the Environmental Kuznets Curve (EKC) in the Indian context for the period of 1991-2018 by considering the role of economic growth, renewable energy, foreign direct investment, stock market size, energy intensity, and private investment in the energy sector with the help of autoregressive distributed lag (ARDL) cointegration technique. The results confirm the existence of an inverted U-shaped EKC relationship between economic growth and CO2 emission level. However, the estimation of turnaround point shows that CO2 levels have kept increasing past the turnaround point, indicating that income disparity is a decisive factor in determining emissions and is a better indicator than national income. Furthermore, results confirm the negative impact of economic growth and stock market size on the environment. In contrast, renewable energy, foreign direct investment, and energy intensity positively impact the environment in the long run. However, the impact of private investment is insignificant. Though the Indian economy continued to grow during the last few decades, the minimal investment towards renewable energy may not help to reduce the environmental problems. Hence, the nation's income growth alone does not solve the ecological issues in the long run. In addition, it requires an increase in private investment towards the development of India's renewable energy sector.
Highlights
Increasing greenhouse gas levels have become one of the significant concerns in countries all over the world
Base Model This study investigates the impact of different explanatory variables on the existence of the Environmental Kuznets Curve (EKC) for India and their effect on environmental degradation
The objective of this paper is to check the existence of EKC for India under the influence of various factors such as Energy Intensity (EI), Renewable Energy (RE), stock market indicators, Private Investment (PI) into the energy sector, and Foreign Direct Investment (FDI)
Summary
Increasing greenhouse gas levels have become one of the significant concerns in countries all over the world. Being the fastest growing economy globally, the need for energy consumption has increased drastically in India, which cannot be compensated by using dirtier fuels. The shift towards renewable energy, which is economical and clean than non-renewable energy sources, is the need of the hour and the only solution for future energy problems. These renewable energy sources are managed and could improve the economy of the country. The Ministry of New and Renewable Energy (MNRE) in India set a target in 2015 to achieve 175GW of grid-interactive renewable power by 2022
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