Abstract

AbstractThis study empirically examines the cointegrating relationship among variables,viz. carbon emission, economic growth, square of economic growth, primary energy supply, financial development and trade openness in India, with a view to validate the Environmental Kuznets Curve (EKC) hypothesis. The results based onARDLbounds testing approach to cointegration find no credence toEKChypothesis, for the period 1971–2016. This indicates that the relationships between carbon emission and economic growth are not significant, and therefore, theEKChypothesis does not hold in the case of India. Furthermore, the study establishes a significant positive relationship between energy supply and carbon emission. A proportionate increase in energy supply causes more than proportionate increase in carbon emission. In order to cope up with the positive impact of energy on carbon emission, the study suggests that the country needs to expedite the process of enhancing the capacity of renewable and clean energy generation.

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