The causal relationship between Indian energy consumption and the GDP: A shift from conservation to feedback hypothesis post economic liberalisation

Saakshi Chauhan, Rajnish Pande and Subrat Sharma
Additional contact information
Saakshi Chauhan: National Mission on Himalayan Studies and Kumaun University, Uttarakhand, India
Rajnish Pande: Kumaun University, Uttarakhand, India
Subrat Sharma: Centre for Environmental Assessment and Climate Change, Uttarakhand, India

Theoretical and Applied Economics, 2020, vol. XXVII, issue 3(624), Autumn, 203-212

Abstract: Fossil fuels are the main source of energy generation, which on one hand induces development and on the other hand increases emissions. This creates a dissonance between energy consumption and economic growth. In the recent years, liberalisation and policy transformations took place in India rapidly particularly after the 1990s. Therefore we developed relationship between per capita energy consumption and economic growth (Gross Domestic Product as an indicator) for this era (1991-2014). Toda-Yamamoto causality test framework of vector autoregressive model was used to test the relationship between the two. In contrast to earlier studies, our results present a bidirectional causality which shows that economic growth demands energy vis-a-vis energy consumption induces economic growth. Harmonized implications of these results are crucial input to policy purposes for inclusive development.

Keywords: energy consumption; economic growth; Toda-Yamamoto causality test; VAR model. (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://store.ectap.ro/articole/1483.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1483&rid=140 (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:agr:journl:v:3(624):y:2020:i:3(624):p:203-212

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().