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Energy consumption, carbon emissions and economic growth in India

Harishankar Vidyarthi (Department of Management Studies, National Institute of Financial Management, Faridabad, India)

World Journal of Science, Technology and Sustainable Development

ISSN: 2042-5945

Article publication date: 4 October 2013

761

Abstract

Purpose

The purpose of this paper is to empirically examine the long run and causal relationship between energy consumption, carbon emissions and economic growth in India over the period 1971-2009 within multivariate framework.

Design/methodology/approach

The study uses the Johansen cointegration test to examine the possible long-run equilibrium relationship followed by Granger causality test based on vector error correction model to explore short- and long-run causality between energy consumption, carbon emissions and economic growth in India.

Findings

Cointegration result indicates the long-run equilibrium relationship between economic growth, energy consumption and carbon emissions. Further causality results suggest unidirectional causality running from energy consumption and carbon emissions to economic growth in long run, energy consumption to carbon emissions, carbon emissions to economic growth and economic growth to energy consumption in short run.

Practical implications

There is urgent need of policy development toward boosting energy efficiency, developing alternative carbon-free energy sources like nuclear, renewables and expansion of affordable energy for faster, sustainable and more inclusive growth for India in upcoming years.

Originality/value

India, an energy-dependent economy needs to effectively implement energy efficiency measures, super critical technologies in power plants, and investment in renewable energy resources in order to minimize the dependence on fossil fuels and carbon emissions for faster, more inclusive and sustainable growth.

Keywords

Citation

Vidyarthi, H. (2013), "Energy consumption, carbon emissions and economic growth in India", World Journal of Science, Technology and Sustainable Development, Vol. 10 No. 4, pp. 278-287. https://doi.org/10.1108/WJSTSD-07-2013-0024

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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