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Causal Analysis of India’s Energy-led Growth and CO2 Emission (1960-2010)

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  • Sinha, Avik
  • Mehta, Atul

Abstract

For any developing nation, GDP growth and CO2 emission goes hand-in-hand. GDP growth affects the CO2 emission level and vice versa. EKC hypothesis ensures the interaction between income level and environmental degradation. Based on this foundation, bi-directional causal relationship between these two factors for India has been obtained in this paper. For empirical analysis, data for GDP growth of and CO2 emission over the period 1960-2010 has been considered. Vector Error Correction model using lag-augmented VAR model has been employed for the analysis. The result obtained is new in the considering the existing body of literature.

Suggested Citation

  • Sinha, Avik & Mehta, Atul, 2014. "Causal Analysis of India’s Energy-led Growth and CO2 Emission (1960-2010)," MPRA Paper 102261, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:102261
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    CO2 emission; Economic growth; Environmental Kuznets curve; India; Vector error correction;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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