Abstract
Accomplishing environmental sustainability has become a global initiative whilst addressing climate change and its effects. Thus, there is a necessity for innovation on part of economies as they seek energy for sustainable development. Thus, we explore the case of India a highly industrialized and heavy emitter of carbon emission. To this end, this study explores the effect of renewable energy, non-renewable, economic growth, and investment in the energy sector on CO2 emission in the Indian economy. Canonical Cointegration Regression (CCR), Fully Modified Least Squares (FMOLS) and Dynamic Least Squares (DOLS) were used to access the long-run elasticity of the variables as well as Granger Causality analysis to detect the direction of causality relationship among the highlighted variables. Empirical regression shows a negative relation between CO2 emission and renewable energy. Thus, suggesting that renewable energy serves as a panacea for sustainable development in the face of economic growth trajectory. However, there was a positive relationship between CO2 emission and both non-renewable and real GDP growth. On the Granger analysis, we observe a one-way causality among renewable energy consumption and CO2 emission, economic development, and energy investment. These outcomes have far-reaching policy direction of environmental sustainability target in Indian economy.
Highlights
Accomplishing environmental sustainability has become a global initiative whilst addressing climate change and its effects
The purpose of this study is to examine how the Indian economy emission is affected by renewable energy consumption, nonrenewable energy consumption alongside economic growth and investment in the energy sector between 1990 and 2016
India is among the emerging 7 nations (E7) which means the nation’s attention is shifting to industrialization with a lot of human activities which will result in producing more emission which stems from anthropogenic activities which in turn affect the environment in the long run
Summary
Accomplishing environmental sustainability has become a global initiative whilst addressing climate change and its effects. The reduction of fossil-fuel sources and the problem of anthropogenic climate change has a wide emphasis on sustainable energy development. Clean energy solutions remain relatively underdeveloped in both developing and advanced markets, they are increasingly call for a worldwide change to sustainable and low-carbon energy sources. This disposition is being resonated by the Intergovernmental Panel on Climate Change (IPCC) on topical studies on the climate-led urban development debate was how the transition from a nonrenewable source in the form of fossil fuel energy sources to sustainable energy (renewables) in the form of wind, photovoltaic and hydro energy would foster economic growth in emerging markets (Solarin et al, 2021). The analysis of the impact of sustainable and non-renewable energy sources on economic growth renders insights on sustainable energy and inclusive growth strategies as posited by Apergis and Payne (2012)
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