Causal Analysis of India’s Energy-led Growth and CO2 Emission (1960-2010)

Avik Sinha and Atul Mehta

MPRA Paper from University Library of Munich, Germany

Abstract: For any developing nation, GDP growth and CO2 emission goes hand-in-hand. GDP growth affects the CO2 emission level and vice versa. EKC hypothesis ensures the interaction between income level and environmental degradation. Based on this foundation, bi-directional causal relationship between these two factors for India has been obtained in this paper. For empirical analysis, data for GDP growth of and CO2 emission over the period 1960-2010 has been considered. Vector Error Correction model using lag-augmented VAR model has been employed for the analysis. The result obtained is new in the considering the existing body of literature.

Keywords: CO2 emission; Economic growth; Environmental Kuznets curve, India; Vector error correction (search for similar items in EconPapers)
JEL-codes: Q5 Q53 (search for similar items in EconPapers)
Date: 2014, Revised 2014
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Citations: View citations in EconPapers (4)

Published in Indian Journal of Economics and Business 1.13(2014): pp. 81-89

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:102261

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