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The relationship between economic growth and carbon emissions in India

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  • Kaumudi Misra

    (Institute for Social and Economic Change)

Abstract

This paper attempts to analyse the relationship between economic growth and carbon emissions in India. The parameters selected for understanding this relationship are GDP (as a proxy of economic growth) and CO2 emissions for the period 1970-2012. The study includes other important parameters such as energy consumption (oil) and urbanisation. Granger causality is used to check the existence of unidirectional and bi-directional causalities between the variables. The results reveal that there exists a unidirectional causality from energy consumption and GDP to carbon emissions. The ARDL model is used to understand the long run and short run relationship between the variables. The study finds that there exists a long run relationship between the variables whereas in the short run, there is no relationship between the variables. The findings imply that any attempt at reducing carbon emissions without bringing in energy efficiency will adversely affect the economic growth of the country.

Suggested Citation

  • Kaumudi Misra, 2019. "The relationship between economic growth and carbon emissions in India," Working Papers 447, Institute for Social and Economic Change, Bangalore.
  • Handle: RePEc:sch:wpaper:447
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    References listed on IDEAS

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    3. Benjamin S. Cheng, 1999. "Causality Between Energy Consumption and Economic Growth in India: An Application of Cointegration and Error-Correction Modeling," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 34(1), pages 39-49, January.
    4. Stern, David I., 1993. "Energy and economic growth in the USA : A multivariate approach," Energy Economics, Elsevier, vol. 15(2), pages 137-150, April.
    5. Kais Saidi & Sami Hammami, 2015. "The Effect of Energy Consumption and Economic Growth on Co2 Emissions:Evidence from 58 Countries," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 91-104, September.
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