Economics at your fingertips  

The dynamic relationships among CO2 emissions, renewable and non-renewable energy sources, and economic growth in India: Evidence from time-varying Bayesian VAR model

Sang Hoon Kang, Faridul Islam and Aviral Tiwari ()

Structural Change and Economic Dynamics, 2019, vol. 50, issue C, 90-101

Abstract: We apply a three-variable VAR model with probabilistic variability using a time-varying parametric approach to determine the dynamic interactions among GDP growth, energy use by renewable energy sources (RES, wind, solar, or hydro) and non-renewable energy sources (NRES, hydroelectric or coal) and CO2 emission. Further, we characterize and quantify the impact of the nexus on the CO2 emissions, energy sources (RES and NRES) vis-à-vis India's economic growth and fluctuations during 1965Q1-2015Q4. We contribute to the literature by finding that stochastic volatility for RES and NRES appear to be U-shaped besides using TVP-VAR model to the Indian context. This U-shaped pattern seems to be related to economic growth. We also observe the time-varying patterns of the impact transmission mechanisms among energy sources, CO2 emissions, and GDP. In addition, the impulse response of GDP from a positive shock to CO2 varies with the type of energy use in different time horizons.

Keywords: Renewable and non-renewable energy; CO2 emission; Economic growth; TVP-VAR model; Stochastic volatility; India (search for similar items in EconPapers)
JEL-codes: O4 Q2 Q3 Q4 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
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:

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-12-07
Handle: RePEc:eee:streco:v:50:y:2019:i:c:p:90-101