Causal Analysis of India’s Energy-led Growth and CO2 Emission (1960-2010)

Sinha, Avik and Mehta, Atul (2014): Causal Analysis of India’s Energy-led Growth and CO2 Emission (1960-2010). Published in: Indian Journal of Economics and Business , Vol. 13, No. 1 (2014): pp. 81-89.

Abstract

For any developing nation, GDP growth and CO2 emission goes hand-in-hand. GDP growth affects the CO2 emission level and vice versa. EKC hypothesis ensures the interaction between income level and environmental degradation. Based on this foundation, bi-directional causal relationship between these two factors for India has been obtained in this paper. For empirical analysis, data for GDP growth of and CO2 emission over the period 1960-2010 has been considered. Vector Error Correction model using lag-augmented VAR model has been employed for the analysis. The result obtained is new in the considering the existing body of literature.

• Item Type: MPRA Paper
• Language: English
• Keywords: CO2 emission; Economic growth; Environmental Kuznets curve, India; Vector error correction
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling

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