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Environmental Kuznet’s curve for India: Evidence from tests for cointegration with unknown structuralbreaks

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  • Kanjilal, Kakali
  • Ghosh, Sajal
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    Abstract

    This study revisits the cointegrating relationship between carbon emission, energy use, economic activity and trade openness for India using threshold cointegration tests with a view to testing the environmental Kuznet’s curve hypothesis in the presence of possible regime shift in long run relationship of the variables for the period 1971 to 2008. The article confirms the existence of ‘regime-shift’ or ‘threshold’ cointegration among the variables and environmental Kuznet’s curve for India. It challenges previous empirical works for India which fail to establish cointegrating relationship among these variables and explains its logical and econometric reasons. The study finds that the carbon emission is highly elastic with respect to real per capita income and energy use in India. This finding is critical and warns successful design and execution of energy and environmental policy framework which would pave the low carbon sustainable growth path inIndia.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 56 (2013)
    Issue (Month): C ()
    Pages: 509-515

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    Handle: RePEc:eee:enepol:v:56:y:2013:i:c:p:509-515

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Structural change; Threshold cointegration; Environmental Kuznet’s curve;

    References

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    Cited by:
    1. Sahbi Farhani & Muhammad Shahbaz & Ilhan Ozturk, 2014. "Coal Consumption, Industrial Production and CO2 Emissions in China and India," Working Papers 2014-225, Department of Research, Ipag Business School.
    2. Parlow, Anton, 2014. "Environmental Pressure and Armed Conflict - Is there an empirical Kuznets Curve for Myanmar?," MPRA Paper 55828, University Library of Munich, Germany.

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