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Investigating the Nature of Growth-Environment Relationship for India

Author

Listed:
  • Mohammad Imdadul Haque

    (Department of Economics, Aligarh Muslim University, India)

  • Mohammad Asif

    (College of Administrative and Financial Sciences, Saudi Electronic University, Saudi Arabia)

  • Mohammad Rumzi Tausif

    (College of Business Administration, Prince Sattam Bin Abdulaziz University, Saudi Arabia)

  • Mohd Naved Khan

    (College of Administrative and Financial Sciences, Saudi Electronic University, Saudi Arabia)

Abstract

Environmental concerns need to be addressed to make economic growth sustainable. Theories in the literature attempt to establish the relationship between economic growth and environmental degradation. These theories are not deterministic, as concepts like the inverted U-shaped or N-shaped Environmental Kuznets Curve (EKC) have yielded different results for different economies. This study attempts to validate the shape of the EKC and simultaneously test for an asymmetric relationship between economic growth and carbon dioxide emissions. To achieve this, the study uses the simple and non-linear Autoregressive Distributed Lag (ARDL) method on data from 1965 to 2021. The study finds evidence of an inverted U-shaped EKC but finds no evidence of an N-shaped EKC for India. Additionally, the study reports an asymmetric relationship between economic growth, energy consumption, and carbon dioxide emissions. Based on these findings, the study provides suitable policy recommendations.

Suggested Citation

  • Mohammad Imdadul Haque & Mohammad Asif & Mohammad Rumzi Tausif & Mohd Naved Khan, 2024. "Investigating the Nature of Growth-Environment Relationship for India," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 519-525, July.
  • Handle: RePEc:eco:journ2:2024-04-47
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    More about this item

    Keywords

    Economic Growth; Environmental Degradation; Threshold; EKC; NARDL;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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