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Is India Financing Its Emissions Through External Debt?

Author

Listed:
  • Emrah Be e

    (Texas A and M University - RELLIS, Corpus Christi, Texas, USA,)

  • Haven Swint Friday

    (Texas A and M University - RELLIS, Corpus Christi, Texas, USA,)

  • Cihan zden

    (Near East University, Mersin, Turkey.)

Abstract

The main aim of this study is to analyze the effect of external debt on different types of emissions in India as carbon dioxide emissions, methane emissions, emissions from liquid fuel consumption, emissions from solid fuel consumption, and emissions from gaseous fuel consumption. India has a fast growing in external debt especially after 2008 world financial crisis. India has a similar situation to China and Turkey which also started to increase external debt significantly after 2008 world crisis. The effect of external debt on emissions only analyzed by Katircioglu and Celebi (2018), Be e, Friday, and Ozden (2021) and Be e, Friday and Spencer (2021) for Turkey, China and Brazil respectively. This study aims to fill the gap in the literature by analyzing the effect of external debt on emissions. This study is the first study in the literature for India. The second aim of the study is to investigate whether inverted U relationship exists between economic development, and carbon oxide emissions, methane emissions, methane emissions, emissions from liquid fuel consumption, emissions from solid fuel consumption, and emissions from gaseous fuel consumption. This study confirmed inverted-U relationship between methane gas emissions and economic development, and emissions from gaseous fuel consumption and economic development. The positive and significant effect of external debt on carbon dioxide emissions, methane emissions, emissions from gaseous fuel consumption and emissions from solid fuel consumption is confirmed by this study. The analysis is important since after 2008 crisis many countries such as China and Turkey besides India started to borrow external debt heavily to create government investments to boost employment market which collapsed due to global economic crisis. This study carries importance since global greenhouse gas emissions may be financed through external debt in India. Since sustainability is the main issue in current world and reduction of emissions is one of the highest priorities of humanity, necessary measures should be taken into account to reduce financing of emissions through external debt in India.

Suggested Citation

  • Emrah Be e & Haven Swint Friday & Cihan zden, 2021. "Is India Financing Its Emissions Through External Debt?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 170-179.
    • Handle: RePEc:eco:journ2:2021-06-20
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    References listed on IDEAS

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    1. Emrah Bese & Haven Swint Friday & Cihan zden, 2021. "The Effect of External Debt on Emissions: Evidence from China," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 440-447.
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    5. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies : a literature survey," Post-Print hal-03182332, HAL.
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    7. 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.
    8. 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.
    9. Smita Nath, 2020. "An Analysis of the Relationship among Economic Growth, External Debt and Exports in India (1970-2018)," Economy, Asian Online Journal Publishing Group, vol. 7(1), pages 59-68.
    10. Qiao, Hui & Chen, Siyu & Dong, Xiucheng & Dong, Kangyin, 2019. "Has China's coal consumption actually reached its peak? National and regional analysis considering cross-sectional dependence and heterogeneity," Energy Economics, Elsevier, vol. 84(C).
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    Cited by:

    1. Uju Regina Ezenekwe & Eze A. Eze & Geraldine Ejiaka Nzeribe & Maria Chinecherem Uzonwanne, 2023. "Winning the Environmental Sustainability Crusade: Do Agricultural Development and Public Debt Mitigate Environmental Pollution in Nigeria?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1481-1497, September.
    2. Jorge Carrera & Pablo de la Vega, 2022. "The Effect of External Debt on Greenhouse Gas Emissions," Papers 2206.01840, arXiv.org, revised Apr 2024.
    3. Jorge Carrera & Pablo de la Vega, 2024. "The effect of external debt on greenhouse gas emissions," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 48(3), pages 754-776, September.
    4. Hikma Bachegour & Ahlam Qafas, 2023. "Does External Debt Worsen Environmental Pollution? Evidence from Morocco," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 68-76, March.

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    More about this item

    Keywords

    external debt; India; ARDL model; emissions; economic growth;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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