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Carbon Dioxide Emissions, Energy Consumption in Agriculture: A Causality Analysis for India

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  • Sudeshna Ghosh

Abstract

This article utilises the vector error correction model (VECM) and Granger causality tests to explore short-run and long-run relationships, in India, across carbon dioxide (CO 2 ) emissions, energy consumption, agriculture value added (AV), trade liberalisation and financial development over the time period 1971–2013. The study adopts the autoregressive distributed lag (ARDL)-bound testing approach and Johansen–Juselius maximum likelihood procedure to find out the cointegrating relation among the variables. Both ARDL approach and Johansen–Juselius cointegration approach show that the concerned variables under study are cointegrated. Short-run Granger causality results indicate the existence of bidirectional causality between AV and CO 2 emissions, and energy used and CO 2 emissions. In the long-run trade, financial development, energy consumption and AV affect CO 2 emissions. The results put thrust on the need to utilise energy-efficient technologies in agriculture to save the damage of the environment. JEL: C32, O53, Q43

Suggested Citation

  • Sudeshna Ghosh, 2018. "Carbon Dioxide Emissions, Energy Consumption in Agriculture: A Causality Analysis for India," Arthaniti: Journal of Economic Theory and Practice, , vol. 17(2), pages 183-207, December.
  • Handle: RePEc:sae:artjou:v:17:y:2018:i:2:p:183-207
    DOI: 10.1177/0976747918792640
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    More about this item

    Keywords

    India; carbon dioxide; agriculture; ARDL; Granger causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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