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Causality Among Energy Consumption, Co2 Emission, Economic Growth And Trade: A Case Of India

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  • SRINIVASAN P

Abstract

This paper investigates the causal nexus between energy consumption,CO2 emissions, economic growth and trade in India using the Perron (1989) unit root test, Gregory and Hansen (1996) cointegration test and Vector Error Correction Model. The study results exhibit a long-run relationship between energy consumption, CO2 emissions, economic growth and trade in India. The empirical results confirm that energy consumption influences the economic activity in the short-run, implying that higher rate of economic growth is driven by consumption demand for energy in the economy. This is also well in consistent with the findings of Paul and Bhattacharya (2004) in the Indian context. Further, the study detects one way causation exist from energy use to CO2 emission and trade, and CO2 emissions to economic growth in the short-run.

Suggested Citation

  • Srinivasan P, 2014. "Causality Among Energy Consumption, Co2 Emission, Economic Growth And Trade: A Case Of India," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 6(3 (Novemb), pages 315-335.
    • Handle: RePEc:shc:jaresh:v:6:y:2014:i:3:p:305-335
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    Cited by:

    1. Filip Kokotovic & Petar Kurecic & Trina Mjeda, 2019. "Accomplishing the Sustainable Development Goal 13 - Climate Action and the Role of the European Union," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(1-B), pages 132-145.
    2. Filip Kokotovic & Petar Kurecic & Domagoj Cingula, 2016. "The Greenhouse Gas Emission in the EU: Var Analysis of the Relevant Variables," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 2(9), pages 37-46, August.
    3. Filip Kokotovic & Petar Kurecic & Domagoj Cingula, 2016. "The Greenhouse Gas Emission in the EU: Var Analysis of the Relevant Variables," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 2(9), pages 37-46, August.

    More about this item

    Keywords

    Energy Consumption; Economic Growth; CO2 Emissions; Trade; Cointegration.;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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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