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Mitigating Emissions in India: Accounting for the Role of Real Income, Renewable Energy Consumption and Investment in Energy

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  • Festus Victor Bekun

    (Faculty of Economics Administrative and Social sciences, Istanbul Gelisim University, Istanbul, Turkey.)

Abstract

Accomplishing environmental sustainability has become a global initiative whilst addressing climate change and its effects. Thus, there is a necessity for innovation on part of economies as they seek energy for sustainable development. Thus, we explore the case of India a highly industrialized and heavy emitter of carbon emission. To this end, this study explores the effect of renewable energy, non-renewable, economic growth, and investment in the energy sector on CO2 emission in the Indian economy. Canonical cointegration regression (CCR), fully modified least squares (FMOLS) and dynamic least squares (DOLS) were used to access the long-run elasticity of the variables as well as Granger causality analysis to detect the direction of causality relationship among the highlighted variables. Empirical regression shows a negative relation between CO2 emission and renewable energy. Thus, suggesting that renewable energy serves as a panacea for sustainable development in the face ofeconomic growth trajectory. However, there was a positive relationship between CO2 emission and both non-renewable and real GDP growth. On the Granger analysis, we observe a one-way causality among renewable energy consumption and CO2 emission, economic development, and energy investment. These outcomes have far-reaching policy direction of environmental sustainability target in Indian economy.

Suggested Citation

  • Festus Victor Bekun, 2022. "Mitigating Emissions in India: Accounting for the Role of Real Income, Renewable Energy Consumption and Investment in Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 188-192.
    • Handle: RePEc:eco:journ2:2022-01-23
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Sustainability; Carbon Reduction; Renewable Energy; Fossil-fuel Energy;
    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
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics

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