Title: Causality between economic growth, carbon dioxide emissions, oil and coal consumption: empirical evidence from India

Authors: Ritu Rani; Naresh Kumar

Addresses: Government College for Women, Sampla, Rohtak, Haryana, India ' Institute of Management Studies and Research, Maharshi Dayanand University, Rohtak, Haryana, India

Abstract: Energy policy makers in India are interested in the causal relationship among economic growth, carbon dioxide emissions, coal, and oil consumption. This paper is an attempt to analyse the short-run and long-run relationship among economic growth, carbon dioxide emissions, oil, and coal consumption in India using annual data covering the period 1965-2015. Autoregressive distributed lag model and vector error correction model is used to analyse the data. The study found that coal consumption is the key determinant of carbon dioxide emissions and 1% increase in coal consumption will deteriorate the environment by emitting 0.68% carbon dioxide gases in India. The study found bidirectional causality running from coal consumption to carbon dioxide emissions in long run. The study suggests that the government should focus on renewable energy sources like wind and solar energy to reduce carbon dioxide emissions and to achieve high economic growth rate.

Keywords: economic growth; carbon dioxide emissions; causality; GDP per capita.

DOI: 10.1504/IJGEI.2018.097195

International Journal of Global Energy Issues, 2018 Vol.41 No.5/6, pp.308 - 322

Accepted: 29 Oct 2018
Published online: 02 Jan 2019 *

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