IDEAS home Printed from https://ideas.repec.org/a/ibn/jsd123/v8y2015i8p201.html
   My bibliography  Save this article

Testing Environmental Kuznets Curve Hypothesis at Firm Level in India

Author

Listed:
  • Vinayagamoorthi Vasanth
  • Murugesan Selvam
  • Kasilingam Lingaraja
  • Isaiah Onsarigo Miencha
  • Mariappan Raja

Abstract

All over the world, deterioration of environmental quality has been considered as a hot issue. The growing number of industries is one of the major reasons for the enhanced level of pollution and fast degradation of environmental resources. This situation urges the corporates to involve themselves in socially responsible activities and to periodically assess the ecofriendly technologies. This paper proposes to investigate the Environmental Kuznets Curve Hypothesis, with reference to sample companies listed in BSE S&P – 500, over the period 1st April 2005 to 31st March 2014. In order to determine the existence of EKC relationship, the sign and magnitude of regression coefficients were analyzed. The results exhibited U shaped relationship for ROE, ROCE, and ROS. At the same time, EKC relationship, by way of inverted U shaped curve, was found for ROA. Based on the empirical findings of this study, some suggestions have been put forward to the corporates and policy makers, to control the level of energy intensity, by implementing eco-friendly technologies.

Suggested Citation

  • Vinayagamoorthi Vasanth & Murugesan Selvam & Kasilingam Lingaraja & Isaiah Onsarigo Miencha & Mariappan Raja, 2015. "Testing Environmental Kuznets Curve Hypothesis at Firm Level in India," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 8(8), pages 201-201, August.
    • Handle: RePEc:ibn:jsd123:v:8:y:2015:i:8:p:201
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/jsd/article/download/51856/28608
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/jsd/article/view/51856
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Komen, Marinus H.C. & Gerking, Shelby & Folmer, Henk, 1997. "Income and environmental R&D: empirical evidence from OECD countries," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 505-515, November.
    2. Coondoo, Dipankor & Dinda, Soumyananda, 2002. "Causality between income and emission: a country group-specific econometric analysis," Ecological Economics, Elsevier, vol. 40(3), pages 351-367, March.
    3. Iwata, Hiroki & Okada, Keisuke, 2011. "How does environmental performance affect financial performance? Evidence from Japanese manufacturing firms," Ecological Economics, Elsevier, vol. 70(9), pages 1691-1700, July.
    4. Kanjilal, Kakali & Ghosh, Sajal, 2013. "Environmental Kuznet’s curve for India: Evidence from tests for cointegration with unknown structuralbreaks," Energy Policy, Elsevier, vol. 56(C), pages 509-515.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soumyananda Dinda, 2018. "Production technology and carbon emission: long-run relation with short-run dynamics," Journal of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 106-121, January.
    2. Shahbaz, Muhammad & Sharma, Rajesh & Sinha, Avik & Jiao, Zhilun, 2021. "Analyzing nonlinear impact of economic growth drivers on CO2 emissions: Designing an SDG framework for India," Energy Policy, Elsevier, vol. 148(PB).
    3. Priscilla Massa-Sánchez & Luis Quintana-Romero & Ronny Correa-Quezada & María de la Cruz del Río-Rama, 2020. "Empirical Evidence in Ecuador between Economic Growth and Environmental Deterioration," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    4. Shahbaz, Muhammad & Mahalik, Mantu Kumar & Shah, Syed Hasanat & Sato, João Ricardo, 2016. "Time-varying analysis of CO2 emissions, energy consumption, and economic growth nexus: Statistical experience in next 11 countries," Energy Policy, Elsevier, vol. 98(C), pages 33-48.
    5. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    6. Sudeshna Ghosh, 2019. "Environmental Pollution, Income Inequality, and Household Energy Consumption: Evidence from the United Kingdom," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 1-31, June.
    7. Sweety Pandey & Mrutyunjaya Mishra, 2021. "Investigating Environmental Kuznets Curve: A Panel Data Analysis for India," Review of Development and Change, , vol. 26(2), pages 137-152, December.
    8. Ranganathan, Shyam & Bali Swain, Ranjula, 2014. "Analysing Mechanisms for Meeting Global Emissions Target - A Dynamical Systems Approach," Working Paper Series 2014:10, Uppsala University, Department of Economics.
    9. Parlow, Anton, 2014. "Environmental Pressure and Armed Conflict - Is there an empirical Kuznets Curve for Myanmar?," MPRA Paper 55828, University Library of Munich, Germany.
    10. Alam, Md. Mahmudul & Murad, Wahid & Noman, Abu Hanifa Md. & Ozturk, Ilhan, 2019. "economic growth; CO2 emissions; population growth; energy consumption; Environmental Kuznets Curve, Brazil, China, India, Indonesia," SocArXiv 8hq6z, Center for Open Science.
    11. Chiu, Chien-Liang & Chang, Ting-Huan, 2009. "What proportion of renewable energy supplies is needed to initially mitigate CO2 emissions in OECD member countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1669-1674, August.
    12. Claudia García-García & Catalina B. García-García & Román Salmerón, 2021. "Confronting collinearity in environmental regression models: evidence from world data," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 30(3), pages 895-926, September.
    13. Muhammad Shahbaz & Vassilios G. Papavassiliou & Amine Lahiani & David Roubaud, 2023. "Are we moving towards decarbonisation of the global economy? Lessons from the distant past to the present," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2620-2634, July.
    14. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    15. Awaworyi Churchill, Sefa & Inekwe, John & Smyth, Russell & Zhang, Xibin, 2019. "R&D intensity and carbon emissions in the G7: 1870–2014," Energy Economics, Elsevier, vol. 80(C), pages 30-37.
    16. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
    17. Sebri, Maamar, 2009. "La Zone Méditerranéenne Face à la Pollution de L’air : Une Investigation Econométrique [The Mediterranean Zone in front of Air pollution: an Econometric Investigation]," MPRA Paper 32382, University Library of Munich, Germany.
    18. Saidi Kais & Ben Mbarek Mounir, 2017. "Causal interactions between environmental degradation, renewable energy, nuclear energy and real GDP: a dynamic panel data approach," Environment Systems and Decisions, Springer, vol. 37(1), pages 51-67, March.
    19. Stefan Lewandowski, 2017. "Corporate Carbon and Financial Performance: The Role of Emission Reductions," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1196-1211, December.
    20. Muhammad Uzair Ali & Zhimin Gong & Muhammad Ubaid Ali & Fahad Asmi & Rizwanullah Muhammad, 2022. "CO2 emission, economic development, fossil fuel consumption and population density in India, Pakistan and Bangladesh: A panel investigation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 18-31, January.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:jsd123:v:8:y:2015:i:8:p:201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.