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Carbon emissions, energy use, real GDP per capita and trade matrix in the Indian economy-an ARDL approach

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  • Akalpler, Ergin
  • Hove, Simbarashe

Abstract

The study analyzes the effects of carbon dioxide emissions, energy use, gross fixed capital formation, real GDP per capita, exports and imports on Indian economic growth. The study seeks an answer to the following question: When examining the relationships that exist between these parameters, what are the driving forces behind the growth trajectory of the Indian economy? An ARDL model was applied to the analysis of annual data so as to determine co-integration on variables and the nature of the relationship for the period 1971–2014. Empirically, it was found that in the short-term, Real Gross Domestic Product per Capita (LGDPP) for the Indian economy is affected by its past value, Gross Fixed Capital Formation (LGCAPP), Energy Consumption (LENERP) Carbon Emissions (LCO2P) and Imports (LIMPP); however, in the long-term, Gross Fixed Capital Formation (LGCAPP) and Exports (LEXPOP) played a significant role. The error correction model revealed the existence of some co-integration relationship for the entirety of the variables in the study for the short-term and long-term. It is concluded that policies should have clear alternative renewable energy consumption targets in order to achieve energy efficiency and achieve sustainable growth of the economy, while reducing carbon dioxide emissions.

Suggested Citation

  • Akalpler, Ergin & Hove, Simbarashe, 2019. "Carbon emissions, energy use, real GDP per capita and trade matrix in the Indian economy-an ARDL approach," Energy, Elsevier, vol. 168(C), pages 1081-1093.
  • Handle: RePEc:eee:energy:v:168:y:2019:i:c:p:1081-1093
    DOI: 10.1016/j.energy.2018.12.012
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    References listed on IDEAS

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    Cited by:

    1. Khoshnava, Seyed Meysam & Rostami, Raheleh & Zin, Rosli Mohamad & Kamyab, Hesam & Abd Majid, Muhd Zaimi & Yousefpour, Alireza & Mardani, Abbas, 2020. "Green efforts to link the economy and infrastructure strategies in the context of sustainable development," Energy, Elsevier, vol. 193(C).
    2. Solarin, Sakiru Adebola & Bello, Mufutau Opeyemi, 2020. "The impact of shale gas development on the U.S economy: Evidence from a quantile autoregressive distributed lag model," Energy, Elsevier, vol. 205(C).
    3. Vishal, Devesh & Dubey, Shivesh & Goyal, Rahul & Dwivedi, Gaurav & Baredar, Prashant & Chhabra, Mayank, 2020. "Optimization of alkali-catalyzed transesterification of rubber oil for biodiesel production & its impact on engine performance," Renewable Energy, Elsevier, vol. 158(C), pages 167-180.
    4. Jun Bai & Shixiang Li & Nan Wang & Jianru Shi & Xianmin Li, 2020. "Spatial Spillover Effect of New Energy Development on Economic Growth in Developing Areas of China—An Empirical Test Based on the Spatial Dubin Model," Sustainability, MDPI, Open Access Journal, vol. 12(8), pages 1-1, April.

    More about this item

    Keywords

    Real gross domestic product per capita; Gross fixed capital formation; Energy use; Carbon emissions; ARDL;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East

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