Abstract
The study examined the dynamics and quantitative relationship between carbon emission, energy consumption, and economic growth in India using annual data from 1990 to 2019. First, to determine the extent and magnitude of the relationship between variables, this study used unit root tests (ADF & KPSS) where all variables were integrated of order one. Cointegration was confirmed through Johansen & Julesius test for Co-integration and Bounds test, and then Vector Error-Correction modelling was done. The finding of causality demonstrated that carbon emissions were related to economic growth in both the short and long run. Since the growth hypothesis, that is, Environmental Kuznet Curve (EKC), was correct, it can be suggested that India can certainly reduce pollution by accelerating its growth trajectory. This growth pattern should include energy-efficient techniques; hence, more investments in research and innovations are required to take benefit of the inverted U relation of growth with pollution.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.