Investigating the Environmental Kuznets Curve for India

In recent years various empirical studies have investigated and quantified the causal relationship between economic growth and environmental degradation through an empirical model so-called Environmental Kuznets Curve (EKC), currently applied to a range of pollutants. The inverted U-shaped Environmental Kuznets curve (EKC) demonstrates that initially the pollution and environmental degradation surpass the level of income per capita; however this trend reverses since at the higher income levels, economic growth initiates environmental upgrading. It’s distinguishing aspect in the initial stage of development exhibits negative relationship between the environmental quality and per capita income increased and positive relationship between improving environmental condition at the higher level of development. The developing countries find Kuznets verdict indubitably tedious between economic growth and environmental development. Unresponsive regarding environmental protection and endeavor to speed up economic growth had not only kept environmental considerations as secondary objectives in policy making in these countries but also threatened their sustainable future. The paper overviews the EKC literature, background history, policy conceptual insights, and the conceptual and methodological critique. It also underlines other econometric problems with estimates of the EKC. Based on secondary data with reference to India for EKC, this paper analyzes the relationship between Carbon Emission CO2 (per capita metric tons) and GDP (real net per capita in Rs). Using Kuznets original model we conclude that in India after 1990 CO2 emission growth rate is lower than GDP (real net per capita in Rs) growth rate (Implying India follows EKC).