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Modeling Energy Efficiency and Economic Growth: Evidences from India

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  • Avik Sinha

    (Indian Institute of Management Indore FPM 105, Indian Institute of Management Indore, Prabandh Shikhar, Rau-Pithampur Road, Indore 453556, Madhya Pradesh, India.)

Abstract

India s fossil fuel based energy-led economic growth has changed its pattern over a time and it is mainly driven by energy efficiency. In this paper, we have considered reduction in energy waste as a proxy of energy efficiency and analyzed its interplay with economic growth for 1971-2010. We have used Vector Error Correction model, and it has been seen that unidirectional causality exists from economic growth to energy waste, and this causal association is both short run and long run in nature. Moreover, energy waste is following a negatively elastic relationship with the economic growth along the energy efficiency frontier.

Suggested Citation

  • Avik Sinha, 2015. "Modeling Energy Efficiency and Economic Growth: Evidences from India," International Journal of Energy Economics and Policy, Econjournals, vol. 5(1), pages 96-104.
    • Handle: RePEc:eco:journ2:2015-01-08
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    Cited by:

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    2. Sinha, Avik, 2018. "Impact of ICT exports and internet usage on carbon emissions: A case of OECD countries," MPRA Paper 103716, University Library of Munich, Germany, revised 2018.
    3. Taner Güney, 2024. "Renewable Energy Consumption and Sustainable Development: A Panel Cointegration Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1286-1301, March.
    4. Sinha, Avik & Shahbaz, Muhammad, 2018. "Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India," Renewable Energy, Elsevier, vol. 119(C), pages 703-711.
    5. Wang, Haotian & Hao, Liang & Wang, Weizheng & Chen, Xingyu, 2023. "Natural resources lineage, high technology exports and economic performance: RCEP economies perspective of human capital and energy resources efficiency," Resources Policy, Elsevier, vol. 87(PA).
    6. Chinnasamy Palanichamy & Palanichamy Naveen & Wong Kiing Ing & Michael Kobina Danquah & Jayaraman Indumath, 2015. "Energy Efficiency Enhancement of Fossil-Fuelled Power Systems," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 765-771.
    7. Cheng, Ya & Sinha, Avik & Ghosh, Vinit & Sengupta, Tuhin & Luo, Huawei, 2021. "Carbon Tax and Energy Innovation at Crossroads of Carbon Neutrality: Designing a Sustainable Decarbonization Policy," MPRA Paper 108185, University Library of Munich, Germany, revised 2021.
    8. Li, Tianyu & Yue, Xiao-Guang & Waheed, Humayun & Yıldırım, Bilal, 2023. "Can energy efficiency and natural resources foster economic growth? Evidence from BRICS countries," Resources Policy, Elsevier, vol. 83(C).
    9. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    10. Ofori, Isaac K & Gbolonyo, Emmanuel Y. & Ojong, Nathanael, 2022. "Foreign Direct Investment and Inclusive Green Growth in Africa: Energy Efficiency Contingencies and Thresholds," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1-58.
    11. Andrew Adewale Alola & Tomiwa Sunday Adebayo & Ifedolapo Olabisi Olanipekun, 2023. "Examining the Energy Efficiency and Economic Growth Potential in the World Energy Trilemma Countries," Energies, MDPI, vol. 16(4), pages 1-21, February.
    12. Sinha, Avik & Rastogi, Siddhartha K., 2017. "Collaboration between Central and State Government and Environmental Quality: Evidences from Indian Cities," MPRA Paper 100012, University Library of Munich, Germany.
    13. Sinha, Avik & Shahbaz, Muhammad & Balsalobre, Daniel, 2017. "Exploring the Relationship between Energy Usage Segregation and Environmental Degradation in N-11 Countries," MPRA Paper 81212, University Library of Munich, Germany, revised 07 Sep 2017.
    14. Yilmaz Bayar & Marius Dan Gavriletea, 2019. "Energy efficiency, renewable energy, economic growth: evidence from emerging market economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(4), pages 2221-2234, July.
    15. Mohd Irfan & Muhammad Shahbaz, 2022. "Low-carbon energy strategies and financial development in developing economies: investigating long-run influence of credit and equity market development," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(4), pages 1-26, April.
    16. Sinha, Avik, 2017. "Examination of oil import-exchange nexus for India after currency crisis," MPRA Paper 100359, University Library of Munich, Germany, revised 2017.
    17. Sinha, Avik & Shahbaz, Muhammad & Balsalobre, Daniel, 2018. "N-shaped Environmental Kuznets Curve: A Note on Validation and Falsification," MPRA Paper 99313, University Library of Munich, Germany, revised 16 Mar 2020.
    18. Sinha, Avik & Sen, Sudipta, 2016. "Atmospheric consequences of trade and human development: A case of BRIC countries," MPRA Paper 100011, University Library of Munich, Germany.
    19. Smita Nath, 2020. "Relationship between Economic Growth and Electricity Consumption in India: A Re-Investigation," Energy Economics Letters, Asian Economic and Social Society, vol. 7(1), pages 23-35, June.
    20. John A. Jinapor & Shafic Suleman & Richard Stephens Cromwell, 2023. "Energy Consumption and Environmental Quality in Africa: Does Energy Efficiency Make Any Difference?," Sustainability, MDPI, vol. 15(3), pages 1-26, January.
    21. Sinha, Avik, 2016. "Trilateral association between SO2 / NO2 emission, inequality in energy intensity, and economic growth: A case of Indian cities," MPRA Paper 100010, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economic Growth; Energy Waste; India; Vector error correction;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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