Analysis of the Existence of Environmental Kuznets Curve: Evidence from India

Gopal Gopakumar, Ritika Jaiswal and Mayank Parashar
Additional contact information
Gopal Gopakumar: Alumni, BITS Pilani, K K Birla Goa Campus, Goa, India,
Ritika Jaiswal: Department of Economics & Finance, BITS Pilani, K K Birla Goa Campus, Goa, India.
Mayank Parashar: Department of Economics & Finance, BITS Pilani, K K Birla Goa Campus, Goa, India.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 1, 177-187

Abstract: The study aims to estimate the Environmental Kuznets Curve (EKC) in the Indian context for the period of 1991-2018 by considering the role of economic growth, renewable energy, foreign direct investment, stock market size, energy intensity, and private investment in the energy sector with the help of autoregressive distributed lag (ARDL) cointegration technique. The results confirm the existence of an inverted U-shaped EKC relationship between economic growth and CO2 emission level. However, the estimation of turnaround point shows that CO2 levels have kept increasing past the turnaround point, indicating that income disparity is a decisive factor in determining emissions and is a better indicator than national income. Furthermore, results confirm the negative impact of economic growth and stock market size on the environment. In contrast, renewable energy, foreign direct investment, and energy intensity positively impact the environment in the long run. However, the impact of private investment is insignificant. Though the Indian economy continued to grow during the last few decades, the minimal investment towards renewable energy may not help to reduce the environmental problems. Hence, the nation s income growth alone does not solve the ecological issues in the long run. In addition, it requires an increase in private investment towards the development of India s renewable energy sector.

Keywords: EKC Hypothesis; Renewable Energy; Carbon Emission; Environmental Degradation; Turnaround Point (search for similar items in EconPapers)
JEL-codes: K3 M41 M48 Q56 Q58 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.econjournals.com/index.php/ijeep/article/download/11964/6208/29512 (application/pdf)
http://www.econjournals.com/index.php/ijeep/article/view/11964/6208 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2022-01-22

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().