The impacts of globalization, renewable energy, and agriculture on CO2 emissions in India: Contextual evidence using a novel composite carbon emission-related atmospheric quality index

Abstract

At the 26th Conference of Parties in Glasgow, India declared the environmental agendas of turning carbon neutral by 2070 and substantially lowering its carbon intensity level. Thus, it can be assumed that India is committed to improving its atmospheric health over the next couple of decades. Thus, strategizing plans for limiting carbon emission-related environmental pollution has gone on to become a critically important objective of the Indian government. Against this backdrop, this current study aims to examine the factors influencing atmospheric quality in India. As opposed to the previously adopted approaches in the existing studies, a composite atmospheric quality index is estimated using data concerning different carbon dioxide emission-related atmospheric quality indicators (total carbon dioxide emissions, carbon footprints, and carbon intensity levels). Furthermore, the analysis of the possible non-linear association between renewable energy use and atmospheric pollution makes an additional contribution to the environmental literature. Using quarterly frequency data from 1990q1 to 2018q4 and employing advanced econometric techniques suitable for handling structural break issues, the empirical results reveal that globalization through economic and social channels, agricultural output expansion, and greater population density trigger atmospheric pollution in the long run. Besides, the relationship between renewable energy consumption and atmospheric quality is found to exhibit an inverted U-shape. In this regard, the threshold share of renewable energy in the total final energy consumption level of India is predicted at around 45.75% which is comparatively higher than India’s current renewable energy consumption share. Furthermore, urbanization is evidenced to stimulate the deterioration of India's atmospheric quality, both in the short- and long-run. In line with these major findings, some policy-oriented recommendations are made.