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The environmental Kuznets curve for carbon dioxide in India and China: Growth and pollution at crossroad

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  • Pal, Debdatta
  • Mitra, Subrata Kumar

Abstract

This study probes cointegration among carbon dioxide (CO2) emissions, economic activity, energy use, and trade, and examines the environmental Kuznets curve (EKC) hypothesis. We undertake a comparative analysis between India and China over the period 1971–2012 by using the autoregressive distributed lag model of Pesaran et al. (2001). This study establishes a long-run effect of economic activity and trade openness and a short-run effect of energy use on CO2 emissions. It shows the N-shaped relationship between CO2 emissions and economic activity, a departure from the EKC hypothesis. The study ends with policy advisory for balancing between growth and environment.

Suggested Citation

  • Pal, Debdatta & Mitra, Subrata Kumar, 2017. "The environmental Kuznets curve for carbon dioxide in India and China: Growth and pollution at crossroad," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 371-385.
    • Handle: RePEc:eee:jpolmo:v:39:y:2017:i:2:p:371-385
    DOI: 10.1016/j.jpolmod.2017.03.005
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    More about this item

    Keywords

    Carbon emission; EKC; Economic activity; Energy use;
    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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