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Validating the environmental Kuznets curve in India: ARDL bounds testing framework
Author(s) -
Alam Riyaz,
Adil Masudul Hasan
Publication year - 2019
Publication title -
opec energy review
Language(s) - English
Resource type - Journals
eISSN - 1753-0237
pISSN - 1753-0229
DOI - 10.1111/opec.12156
Subject(s) - kuznets curve , openness to experience , economics , cointegration , econometrics , distributed lag , credence , greenhouse gas , renewable energy , macroeconomics , mathematics , statistics , ecology , biology , psychology , social psychology
This study empirically examines the cointegrating relationship among variables, viz . carbon emission, economic growth, square of economic growth, primary energy supply, financial development and trade openness in India, with a view to validate the Environmental Kuznets Curve ( EKC ) hypothesis. The results based on ARDL bounds testing approach to cointegration find no credence to EKC hypothesis, for the period 1971–2016. This indicates that the relationships between carbon emission and economic growth are not significant, and therefore, the EKC hypothesis does not hold in the case of India. Furthermore, the study establishes a significant positive relationship between energy supply and carbon emission. A proportionate increase in energy supply causes more than proportionate increase in carbon emission. In order to cope up with the positive impact of energy on carbon emission, the study suggests that the country needs to expedite the process of enhancing the capacity of renewable and clean energy generation.