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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.

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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.

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