Impact of industrialization, urbanization, and financial development on energy consumption: Empirical evidence from India

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 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

The demand for energy consumption requires efficient financial development in terms of bank credit. Therefore, this study examines the nexus between Financial Development, Economic Growth, Energy Prices and Energy Consumption in India, utilizing Vector Error Correction Model (VECM) technique to determine the nature of short and long term relationships from 2010 to 2019. The estimation of results indicates that a one percent increase in bank credits to private sector results in 0.10 percent increase in energy consumption and 0.28 percent increase in energy consumption responses to 1 percent increase in economic growth. It is also observed that the impact of energy price proxied by consumer price index is statistically significant with a negative sign indicating the consistency with the theory.

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

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.

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.

Energy Consumption and Transportation in Developing Countries: Need for Local Scenario-Based Energy Efficiency Plans

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

Macroeconomic determinants of non-renewable and renewable energy consumption in India: The roles of international trade, innovative technologies, financial globalization, carbon emissions, financial development, and urbanization

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.

The role of financial development, R&D expenditure, globalization and institutional quality in energy consumption in India: New evidence from the QARDL approach

ABSTRACTThe present study investigates the long-run impact of financial development, energy consumption and economic growth on greenhouse gas emissions for India, in the presence of endogenous structural breaks, over the period 1971–2013. The autoregressive distributed lag bounds testing procedure (ARDL) and Hatemi-J threshold cointegration technique were used to test the variables for cointegration. ARDL bounds test did not confirm any cointegrating relationship between the variables. The threshold cointegration test establishes the presence of long-run impact of financial development, energy use and economic growth on greenhouse gas emissions in India. The results reveal that the long-run relationship between the variables has witnessed two regime shifts, in 1978 and 2002. The empirical evidence shows that financial sector development and energy consumption in India degrade the environment. Unlike previous studies, this paper finds no statistical evidence of a long-run relationship between economic growth and environmental deterioration. The study also challenges the existence of an environmental Kuznets curve in India.

The flow of remittances is decisive in shaping India's economic and societal welfare. India is also one of the fastest-growing economies, and its energy demand has a determining impact on global energy consumption. Remittances are often seen as a crucial source of external finance for India and can play a decisive role in financing renewable energy generation projects. However, minimal exploration has been conducted on the issue of interrelationship between remittances and renewable energy consumption in India. The present study attempts to empirically test the impact of remittances on the level of consumption of renewable energy in India over the period 1990–2020, which, to the best of our knowledge, none of the previous studies has dealt with yet. The results of the nonlinear autoregressive distributed lag (NARDL) model show that a lagged negative shock of remittances positively and significantly impacts renewable energy consumption in India. The long-term result confirms that a negative shock of remittances significantly reduces renewable energy use. The reduction of remittances has a more significant impact than the increase of the same, implying the existence of an asymmetric impact of remittances over renewable energy consumption. One of the critical policy implications of these findings is that the government should promote policies that enhance the inflow of remittances as it would facilitate the use of renewable energy in India.