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Sustainable Strategies for the Indian Coal Sector: An Econometric Analysis Approach

Author

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  • Animesh Mishra

    (Department of Management Studies & Industrial Engineering, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India)

  • Niladri Das

    (Department of Management Studies & Industrial Engineering, Indian Institute of Technology (Indian School of Mines), Dhanbad 826004, India)

  • Prem Chhetri

    (College of Business and Law, School of Accounting, Information Systems and Supply Chain, RMIT University, Melbourne 3001, Australia)

Abstract

Thermal power generation based on coal has been identified as the second largest polluting industry due to the greenhouse gas emissions caused by coal combustion. The pollution caused by this industry is not limited to power generation, but it also manifests itself throughout the use of products. Although a huge emphasis has been placed on replacing coal-based power generation with renewable resources, we showed that Indian power generation will depend on coal for more than fifty percent of its demand in the near future. In our study, we utilized a combination of linear cointegration, non-linear cointegration, ARIMA, and the VECM to forecast the use of coal based on the Indian industrial index and the amount of electricity generated through coal combustion required to meet the demand. Given that pollution and carbon emissions are inherent in the coal usage cycle, we drafted policy implications and recommendations to mitigate the consequences, green the coal usage cycle, and improve the coal supply chain.

Suggested Citation

  • Animesh Mishra & Niladri Das & Prem Chhetri, 2023. "Sustainable Strategies for the Indian Coal Sector: An Econometric Analysis Approach," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:11129-:d:1195892
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