Evolving a policy framework discovering the dynamic association between determinants of oil consumption in India

Aaliyah Siddiqui, Pradeep Kautish, Rajesh Sharma, Avik Sinha and Mujahid Siddiqui

Energy Policy, 2022, vol. 169, issue C

Abstract: By addressing the sustainable development goal (SDG) of cleaner and affordable energy, developing countries like India can navigate the growing environmental pollution. However, viewing the dominating share of oil in the country's energy basket, it will be challenging for policymakers to reduce its consumption in the coming years. In this vein, this study aims to identify the determinants of oil consumption in India to develop a future strategy to reduce oil dependency. In furtherance of this goal, we included four determinants of oil, i.e., remittances, exchange rates, government consumption, and technological innovation. The results obtained using the nonlinear autoregressive distributed lag method revealed that the increased remittances inflows had increased oil consumption during the study period (1980–2017). The impact of increased and decreased government consumption on oil demand is found positive and negative, respectively. Further, it is expected that we can reduce oil usage by introducing advanced technology across sectors. But the computed results revealed that the increased technological innovation led to an increase in oil demand, whereas downside variation in technology had reduced its consumption in the long run. In the end, the study proposes a policy framework that supports SDG7, SDG 9, SDG 12, and SDG 13.

Keywords: Remittances; Oil consumption; Innovation; Government consumption; NARDL (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421522004001
Full text for ScienceDirect subscribers only

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:eee:enepol:v:169:y:2022:i:c:s0301421522004001

DOI: 10.1016/j.enpol.2022.113179

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().