IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i11p9025-d1162970.html
   My bibliography  Save this article

Impact of Economic Growth, Trade Openness, Urbanization and Energy Consumption on Carbon Emissions: A Study of India

Author

Listed:
  • Arvind Goswami

    (Department of Economic Studies, Central University of Punjab, Ghudda, Bathinda 151401, India)

  • Harmanpreet Singh Kapoor

    (Department of Mathematics and Statistics, Central University of Punjab, Ghudda, Bathinda 151401, India)

  • Rajesh Kumar Jangir

    (Department of Economic Studies, Central University of Punjab, Ghudda, Bathinda 151401, India)

  • Caspar Njoroge Ngigi

    (Department of Economic Studies, Central University of Punjab, Ghudda, Bathinda 151401, India)

  • Behdin Nowrouzi-Kia

    (Department of Occupational Science and Occupational Therapy, Temerty Faculty of Medicine, University of Toronto, Toronto, ON M5G 1V7, Canada)

  • Vijay Kumar Chattu

    (Department of Occupational Science and Occupational Therapy, Temerty Faculty of Medicine, University of Toronto, Toronto, ON M5G 1V7, Canada
    Center for Transdisciplinary Research, Saveetha Dental College, Saveetha Institute of Medical and Technical Sciences, Saveetha University, Chennai 600077, India
    Department of Community Medicine, Faculty of Medicine, Datta Meghe Institute of Medical Sciences (DMIMS), Wardha 442107, India)

Abstract

(1) Background: Global warming is one of the most severe environmental problems humans are facing now. This study aims to assess the impacts of economic growth, trade openness, urbanization, and energy consumption on carbon emissions in India; (2) Methodology: In this longitudinal study, data have been collected from World Development Indicators and Our World in Data from 1980 to 2021. Two models have been used in this study, which are ARDL and the random forest model, which is a machine learning algorithm that uses the aggregated prediction for final prediction; (3) Results: The ARDL model revealed that the variables were cointegrated. In the short run, CO 2 emissions at previous lag, economic growth, and trade openness negatively correlated with CO 2 emissions, while energy consumption and urbanization exhibited a positive correlation. In the long run, energy consumption, urbanization, and trade openness positively correlated with CO 2 emissions, while economic growth and CO 2 emissions at previous lag demonstrated a negative correlation. The high value of the R 2 and low values of RMSE and M.A.E. in the Random Forest model shows the model’s fitness; (4) Conclusions: The study’s findings have been briefly discussed, and a few suggestions have been provided based on the results.

Suggested Citation

  • Arvind Goswami & Harmanpreet Singh Kapoor & Rajesh Kumar Jangir & Caspar Njoroge Ngigi & Behdin Nowrouzi-Kia & Vijay Kumar Chattu, 2023. "Impact of Economic Growth, Trade Openness, Urbanization and Energy Consumption on Carbon Emissions: A Study of India," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:9025-:d:1162970
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/11/9025/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/11/9025/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    2. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    3. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    4. Frick, Susanne A. & Rodríguez-Pose, Andrés, 2018. "Change in urban concentration and economic growth," World Development, Elsevier, vol. 105(C), pages 156-170.
    5. Sarkodie, Samuel Asumadu & Ozturk, Ilhan, 2020. "Investigating the Environmental Kuznets Curve hypothesis in Kenya: A multivariate analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    6. Acaravci, Ali & Ozturk, Ilhan, 2010. "On the relationship between energy consumption, CO2 emissions and economic growth in Europe," Energy, Elsevier, vol. 35(12), pages 5412-5420.
    7. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
    8. Mu Li & Li Li & Wadim Strielkowski, 2019. "The Impact of Urbanization and Industrialization on Energy Security: A Case Study of China," Energies, MDPI, vol. 12(11), pages 1-22, June.
    9. Xu, Bin & Lin, Boqiang, 2015. "How industrialization and urbanization process impacts on CO2 emissions in China: Evidence from nonparametric additive regression models," Energy Economics, Elsevier, vol. 48(C), pages 188-202.
    10. Oluyomi A. Osobajo & Afolabi Otitoju & Martha Ajibola Otitoju & Adekunle Oke, 2020. "The Impact of Energy Consumption and Economic Growth on Carbon Dioxide Emissions," Sustainability, MDPI, vol. 12(19), pages 1-16, September.
    11. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2012. "Energy consumption, economic growth and CO2 emissions in Middle East and North African countries," Energy Policy, Elsevier, vol. 45(C), pages 342-349.
    12. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    13. Fakher, Hossein Ali & Ahmed, Zahoor & Acheampong, Alex O. & Nathaniel, Solomon Prince, 2023. "Renewable energy, nonrenewable energy, and environmental quality nexus: An investigation of the N-shaped Environmental Kuznets Curve based on six environmental indicators," Energy, Elsevier, vol. 263(PA).
    14. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    15. Ghosh, Sajal & Kanjilal, Kakali, 2014. "Long-term equilibrium relationship between urbanization, energy consumption and economic activity: Empirical evidence from India," Energy, Elsevier, vol. 66(C), pages 324-331.
    16. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 401-416, November.
    17. repec:ipg:wpaper:2014-582 is not listed on IDEAS
    18. Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Maham Furqan, 2020. "Oil sector and CO2 emissions in Saudi Arabia: asymmetry analysis," Palgrave Communications, Palgrave Macmillan, vol. 6(1), pages 1-10, December.
    19. Xueling Guan & Min Zhou & Ming Zhang, 2015. "Using the ARDL-ECM Approach to Explore the Nexus Among Urbanization, Energy Consumption, and Economic Growth in Jiangsu Province, China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(2), pages 391-399, March.
    20. Mingxing Chen & Hua Zhang & Weidong Liu & Wenzhong Zhang, 2014. "The Global Pattern of Urbanization and Economic Growth: Evidence from the Last Three Decades," PLOS ONE, Public Library of Science, vol. 9(8), pages 1-15, August.
    21. Sharif, Arshian & Raza, Syed Ali & Ozturk, Ilhan & Afshan, Sahar, 2019. "The dynamic relationship of renewable and nonrenewable energy consumption with carbon emission: A global study with the application of heterogeneous panel estimations," Renewable Energy, Elsevier, vol. 133(C), pages 685-691.
    22. Su, Min & Wang, Qiang & Li, Rongrong & Wang, Lili, 2022. "Per capita renewable energy consumption in 116 countries: The effects of urbanization, industrialization, GDP, aging, and trade openness," Energy, Elsevier, vol. 254(PB).
    23. Asim Anwar & Mustafa Younis & Inayat Ullah, 2020. "Impact of Urbanization and Economic Growth on CO 2 Emission: A Case of Far East Asian Countries," IJERPH, MDPI, vol. 17(7), pages 1-8, April.
    24. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    25. Liu, Xuemei, 2005. "Explaining the relationship between CO2 emissions and national income--The role of energy consumption," Economics Letters, Elsevier, vol. 87(3), pages 325-328, June.
    26. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qin Meng & Jing-Wen Zhang & Yunxu Wang & Hsu-Ling Chang & Chi-Wei Su, 2023. "Green Household Technology and Its Impacts on Environmental Sustainability in China," Sustainability, MDPI, vol. 15(17), pages 1-13, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies: a literature survey," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 585-631, October.
    2. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    3. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2017. "Carbon Dioxide Emissions and Economic Growth: An Assessment Based on Production and Consumption Emission Inventories," Ecological Economics, Elsevier, vol. 135(C), pages 269-279.
    4. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    5. Mehmet Demiral & Emrah Eray Akça & Ipek Tekin, 2021. "Predictors of global carbon dioxide emissions: Do stringent environmental policies matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18337-18361, December.
    6. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    7. Le Hoang Phong, 2019. "Globalization, Financial Development, and Environmental Degradation in the Presence of Environmental Kuznets Curve: Evidence from ASEAN-5 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 40-50.
    8. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    9. Pascalau, Razvan & Qirjo, Dhimitri, 2017. "TTIP and the Environmental Kuznets Curve," MPRA Paper 80192, University Library of Munich, Germany.
    10. Seker, Fahri & Ertugrul, Hasan Murat & Cetin, Murat, 2015. "The impact of foreign direct investment on environmental quality: A bounds testing and causality analysis for Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 347-356.
    11. Bölük, Gülden & Mert, Mehmet, 2014. "Fossil & renewable energy consumption, GHGs (greenhouse gases) and economic growth: Evidence from a panel of EU (European Union) countries," Energy, Elsevier, vol. 74(C), pages 439-446.
    12. Feng Mao & Joshua D. Miller & Sera L. Young & Stefan Krause & David M. Hannah, 2022. "Inequality of household water security follows a Development Kuznets Curve," Nature Communications, Nature, vol. 13(1), pages 1-10, December.
    13. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    14. Muhammad Bilal Khan & Hummera Saleem & Malik Shahzad Shabbir & Xie Huobao, 2022. "The effects of globalization, energy consumption and economic growth on carbon dioxide emissions in South Asian countries," Energy & Environment, , vol. 33(1), pages 107-134, February.
    15. Nyakundi M. Michieka & John Deal & Kyle Lahman, 2022. "Air pollution and income inequality: a spatial econometric approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 1-31, August.
    16. Misbah Sadiq & Desti Kannaiah & Ghulam Yahya Khan & Malik Shahzad Shabbir & Kanwal Bilal & Aysha Zamir, 2023. "Does sustainable environmental agenda matter? The role of globalization toward energy consumption, economic growth, and carbon dioxide emissions in South Asian countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 76-95, January.
    17. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    18. Zhang, Qianxue & Liao, Hua & Hao, Yu, 2018. "Does one path fit all? An empirical study on the relationship between energy consumption and economic development for individual Chinese provinces," Energy, Elsevier, vol. 150(C), pages 527-543.
    19. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
    20. Bölük, Gülden & Mert, Mehmet, 2015. "The renewable energy, growth and environmental Kuznets curve in Turkey: An ARDL approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 587-595.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:9025-:d:1162970. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.