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Relationship between Energy Consumption, CO2 Emissions, Economic Growth and Trade in India

Author

Listed:
  • Srinivasan Palamalai

    (Xavier Institute of Management & Entrepreneurship, Karnataka, India.)

  • Inder Siddanth Ravindra

    (Department of Economics, Christ University, Karnataka, India.)

  • Karthigai Prakasam

    (Department of Economics, Christ University, Karnataka, India.)

Abstract

The purpose of the study is to examine the causal nexus between various sources of energy consumption, viz. Coal, Crude Oil, Electricity and Natural Gas, CO2 emissions, economic growth and trade in India using the Perron unit root test, Gregory and Hansen cointegration test and Vector Error Correction Model. The study exhibits a long-run relationship between various sources of energy consumption, economic growth, CO2 emissions and trade in India. By and large, the empirical results confirm that economic growth fuels rate of various sources of energy consumption i.e. coal, crude petroleum, electricity and natural gas. The findings reveal that increase in CO2 emissions leads to achieve high level of economic activity in India. In addition, the study finds that foreign trade influences the various sources of non-renewable energy consumption in the long-term. However, the energy consumption do not significantly contributes towards promoting foreign trade, except crude petroleum, in the short-run.

Suggested Citation

  • Srinivasan Palamalai & Inder Siddanth Ravindra & Karthigai Prakasam, 2015. "Relationship between Energy Consumption, CO2 Emissions, Economic Growth and Trade in India," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 3(2), pages 1-17, April.
    • Handle: RePEc:lrc:lareco:v:3:y:2015:i:2:p:1-17
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    Citations

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    Cited by:

    1. Munir Ahmad & Gul Jabeen & Muhammad Irfan & Marie Claire Mukeshimana & Naseer Ahmed & Maria Jabeen, 2020. "Modeling Causal Interactions Between Energy Investment, Pollutant Emissions, and Economic Growth: China Study," Biophysical Economics and Resource Quality, Springer, vol. 5(1), pages 1-12, March.
    2. Chenyu Lu & Wei Liu & Ping Huang & Yueju Wang & Xianglong Tang, 2023. "Effect of Energy Utilization and Economic Growth on the Ecological Environment in the Yellow River Basin," IJERPH, MDPI, vol. 20(3), pages 1-18, January.
    3. Eren Cifci & Matthew E. Oliver, 2018. "Reassessing the Links between GHG Emissions, Economic Growth, and the UNFCCC: A Difference-in-Differences Approach," Sustainability, MDPI, vol. 10(2), pages 1-22, January.
    4. Bismark Ameyaw & Li Yao, 2018. "Analyzing the Impact of GDP on CO 2 Emissions and Forecasting Africa’s Total CO 2 Emissions with Non-Assumption Driven Bidirectional Long Short-Term Memory," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    5. MUTASCU Mihai & PEREAU Jean-Christophe & URSU Eugen, 2016. "A Wavelet Analysis of the Environmental Kuznets Curve in France," Cahiers du GREThA (2007-2019) 2016-10, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Qusai Mohammad Qasim Alabed & Fathin Faizah Said & Zulkefly Abdul Karim & Mohd Azlan Shah Zaidi & Mohammed Daher Alshammary, 2021. "Energy–Growth Nexus in the MENA Region: A Dynamic Panel Threshold Estimation," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    7. Yu Hao & Shang Gao & Yunxia Guo & Zhiqiang Gai & Haitao Wu, 2021. "Measuring the nexus between economic development and environmental quality based on environmental Kuznets curve: a comparative study between China and Germany for the period of 2000–2017," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16848-16873, November.
    8. Imtiaz Arif; Syeda Wajiha Kazmi; Lubna Khan, 2017. "Relationship between Trade Openness and Energy Consumption in Oil Importing Asian Countries," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 30-39, March.
    9. Wenjing Zhang & Hengzhou Xu, 2017. "Exploring the causal relationship between carbon emissions and land urbanization quality in China using a panel data analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(4), pages 1445-1462, August.
    10. Nhung Thi Kim NGUYEN & Minh Binh LE, 2018. "Co2 Emissions and Economic Growth in Vietnam: An ARDL Bound Testing Approach," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(1), pages 47-55, March.
    11. Adekunle, Wasiu & Omo-Ikirodah, Beatrice & Collins, Olutosin & Adeniyi, Andrew & Bagudo, Abubakar & Mosobalaje, Risikat & Oladepo, Safiyyah, 2021. "Analysis of Environmental Degradation and its Determinants in Nigeria: New Evidence from ARDL and Causality Approaches," MPRA Paper 111069, University Library of Munich, Germany, revised 14 Dec 2021.

    More about this item

    Keywords

    CO2 emissions; Cointegration; Energy consumption; Economic growth.;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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

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