Energy Imperatives for India vis-à-vis China and Brazil

This paper examines the long-run equilibrium and the existence of the causal relationship between financial development, energy consumption, economic growth and FDI in India for the period 1978–2014. The Johansen-Juselius maximum likelihood procedure in the multivariate framework and Granger causality in the vector error correction framework (VECM) is employed to examine the co-integration and causal association between the considered variables. The results of Johansen-Juselius co-integration test shows that there is long-run equilibrium relationship among variables. We also find that there is no long-run causality between the variables, but there exists bi-directional short-run causality between financial development and energy consumption in India. Based on these results, suitable growth policies are also discussed for India.

This study attempts to explore the dynamic causal and inter-relationships among tourism, economic growth and energy consumption in India. This study covers the annual data from 1971 to 2012. This study applies the cointegration and generalised variance decomposition methods to verify the relationship. The bounds testing approach to cointegration and the Gregory–Hansen test for cointegration with structural break consistently reveal that energy consumption, tourism and economic growth in India are cointegrated. We find that tourism and economic growth strongly affects energy consumption in the long-run. Additionally, we also find that tourism and economic growth in India are inter-related, but the causal effect of tourism on economic growth is stronger than the other way around in both the short- and long-run. Therefore, this study concludes that the tourism-led growth hypothesis is valid but the energy-led growth hypothesis is invalid in India. With such findings, we can confirm that tourism is an important catalyst of growth to the Indian economy. Therefore, policy-makers should promote and expand tourism industry in order to sustain the process of economic growth and development in India.

This paper scrutinizes the asymmetric impact of education and education expenditure on clean energy consumption and CO2 emissions in the BRICS economies using annual data for the period 1991-2019. The analysis employs a nonlinear autoregressive distributed lag (ARDL) framework. Findings unfold that a positive change in education contributes to increasing clean energy consumption in Brazil, Russia, India, and China. This finding implies that a negative change in education contributes to reducing clean energy consumption in Brazil, Russia, and India in the long run. Nonetheless, a positive change in education expenditure increased the clean energy consumption in Brazil, Russia, and India, while it has decreased in South Africa. On the dark side, a negative change in education expenditure degrades clean energy consumption in India, China, and South Africa in the long run. The asymmetric empirical results of CO2 emissions are mixed, economy-specific, and vary across group countries in the long run. We find that the education and education expenditure has long-run asymmetric effects in BRICS industries. Thus empirical findings give us robust policy implications for BRICS economies.

India’s energy sector has undergone significant transformation in recent decades, including governance reforms and attempts to modernise the sector principally by introducing market building initiatives. These reforms come on the back of an essentially poor performing sector that has typically been identified as responsible for holding back India’s economic development due to underinvestment and capacity underutilisation. Indeed, India’s electricity sector in terms of both “equity” and “quantity” is still far from being satisfactory. Though more than 80 per cent of Indian villages are electrified, electricity access for rural households is below 60 per cent compared with 90 per cent in urban areas. Indeed the issue of equity in the Indian energy sector is highlighted by the fact that in rural areas the main fuel source for cooking continues to be wood or cow dung, underscoring low rates of electricity utilisation due to both equity of access issues and affordability for the rural poor. More generally, per capita energy consumption in India is far less than the global average, indicative of an economy that remains underdeveloped (Balachandra et al. 2010). Yet, despite lower per capita rates of energy consumption in India (USD1,045 in 2009), energy costs account for a large proportion of household budgets — due in part to distorted tariff regimes and high transmission and production costs. Importantly for India, energy costs are only likely to worsen in the years ahead, driven by increasing energy demand as the economy continues to grow and by the lack of domestic energy supplies, heightening reliance on foreign energy sources.KeywordsEnergy SectorElectricity SectorPower SectorTariff StructurePrivate Sector ParticipationThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Stochastic conditional convergence in per capita energy consumption in India

This study aims to empirically test the relationship between agriculture economic growth and energy consumption in India covering the annual time series data for the period 1985 to 2017 on four economic indicators namely agricultural value added (constant 2010 US$) as an alternate favoring fiscal development of agriculture, energy spending represented by agricultural electricity consumption (GWh), agricultural gas consumption (mmcft) and agricultural oil consumption (tons) in India. The study variables are assessed for stationary using the ADF tests and after confirming the same order of integration, the Johansen's Co-integration Test is exercised to find the extended association amid agriculture growth and energy consumption. Both the Trace and Lmax tests found that there exists one co-integrating equation in the system. The co-integration test confirms the long run equilibrium relation between energy consumption and agricultural economic growth in India. The short run relationships are tested by using the VECM methodology and finally the impulse responses are studied for the forecast horizon of ten years period to assess the performance of agricultural growth Vis a Vis energy consumption by imposing one standard deviation shock to the independent variables.Keywords: Co-integration, Agricultural Growth, Energy Use & Time Series AnalysisJEL Classifications: C32, O13, Q40DOI: https://doi.org/10.32479/ijeep.9711

This article examines the relationship between energy consumption, industrialization, urbanization, economic growth, and financial development in India from 1980 to 2017. The ARDL bound testing; Johansen & Juselius cointegration approach and Gregory & Hansen structural break cointegration technique confirm the long‐run relationship exists among variables. The result of long‐run analysis indicates that the industrialization, urbanization and economic growth play a vital role in increasing energy consumption in India. However, financial development indicates negative relation to energy consumption. The coefficient of error correction term is negative and statistically significant at 1% confidence level, it means last‐period's deviation from a long‐run equilibrium. It is clear from the results of Toda‐Yamamoto Causality, there is a unidirectional causality running from industrialization to energy consumption. However, there is bidirectional causality showing between energy consumption and urbanization, economic growth and energy consumption, and urbanization and Economic growth. Urbanization facilitates fuel switching, as decentralized rural energy sources like traditional wood‐burning are replaced by centralized energy sources. From the above findings, we argue that proper awareness should be made at the urban center regarding use of energy saving equipments and public infrastructure should be improved to harness the effect of urban agglomeration. As rapid development of energy intensive‐industries and economic activity in Indian economy, there is need of energy efficient technology in industry in order to reduce energy consumption.

The present paper tries to see the causal relationship among emission of carbon dioxide (Co2), GDP (Economic Growth) and energy consumption (Oil) in India. The secondary data has been collected from various issues of Economic survey of India, GoI, various issues of Energy statistics, GoI, and data published by the World Bank on India. The VAR (Vector Auto Regression Model) has been applied due to absence of long-run relationship among variables. The study also found that there is no causality among the variables. The Government of India should take necessary steps to attain efficiency in energy use while preserving it and steps to be taken for lesser use of fossil fuels.

To assess whether disparities in energy consumption and insufficient energy intake in India have changed over time across socio-economic status (SES). This cross-sectional, population-based survey study examines the relationship between several SES indicators (i.e. wealth, education, caste, occupation) and energy consumption in India at two time points almost 20 years apart. Household food intake in the last 30 d was assessed in 1993-94 and in 2011-12. Average dietary energy intake per person in the household (e.g. kilocalories) and whether the household consumed less than 80 % of the recommended energy intake (i.e. insufficient energy intake) were calculated. Linear and relative risk regression models were used to estimate the relationship between SES and average energy consumed per day per person and the relative risk of consuming an insufficient amount of energy. Rural and urban areas across India. A nationally representative sample of households. Among rural households, there was a positive association between SES and energy intake across all four SES indicators during both survey years. Similar results were seen for energy insufficiency vis-à-vis recommended energy intake levels. Among urban households, wealth was associated with energy intake and insufficiency at both time points, but there was no educational patterning of energy insufficiency in 2011-12. Results suggest little overall change in the SES patterning of energy consumption and percentage of households with insufficient energy intake from 1993-94 to 2011-12 in India. Policies in India need to improve energy intake among low-SES households, particularly in rural areas.

Energy has become one of the key elements in the era of globalization driven economic growth. On one hand, growth of an economy, with its global competitiveness, hinges on the availability of cost-effective and environmentally benign energy sources, and on the other hand, the level of economic development has been observed to be reliant on the energy demand. Therefore, this paper explores the sources of energy production in India and analyses the growth and trend in energy production and consumption. Nonparametric techniques like Mann-Kendal and Sen’s slope technique has been used to analyse the trends. The study observes that though there is a sharp increasing trend of energy consumption in India, the production trend has been very dubious. Keywords: Energy Production, Trends, Growth Rate DOI : 10.7176/JETP/10-1-01 Publication date: January 31 st 2020

The impact of financial development and economic growth on renewable energy consumption: Empirical analysis of India

The main objective of this study is to investigate the impact of research and development (R&D) intensity on renewable energy consumption in selected Asian economies. We have relied on the autoregressive distributive lag (ARDL) method to get empirical estimates. The short- and long-run results show that a rise in R&D intensity increases renewable energy consumption in China and Japan. In the long run, energy intensity and financial development increase renewable energy consumption in China and India only. Among other control variables, a rise in CO2 emissions causes renewable energy consumption to rise in all three economies in the long run. The trade increases renewable energy consumption in India and Japan in the long run. This study shows the important policy implications of promoting R&D and renewable energy consumption in the selected Asian economies.

This study attempt to fill the research gap by figuring out the dynamic effects of foreign capital inflows effect on renewable energy and non-renewable consumption by using the time series non-linear ARDL approach for BRICS from 1991 to 2019. Non-linear ARDL estimates show that positive change in foreign capital inflows has a positive effect on renewable consumption in Brazil, India, and South Africa in long run. Also, the negative change in foreign capital inflows exhibits negatively liked with renewable energy consumption in BRICS economies, except Russia in long run. We find that positive shock in foreign capital inflows tends to increase non-renewable energy consumption in BRICS except India in the long run. Finding suggests that negative change in foreign capital inflows has negative impacts on non-renewable energy consumption in India and Brazil, while the positive effect in only China in the long run.

PurposeThis paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption.Design/methodology/approachTo attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares.FindingsThe results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques.Practical implicationsBecause G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation.Originality/valueTo the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

Environmental feasibility of a gradual shift from fossil fuels to renewable energy in India: Evidence from multiple structural breaks cointegration