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Causality among carbon emissions, energy consumption and growth in India
Faculty of Economics and Administrative Sciences, Çağ University, Mersin, Turkey.
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2012 (English)In: Ekonomska Istrazivanja, ISSN 1331-677X, Vol. 25, no 3, 752-775 p.Article in journal (Other academic) Published
Abstract [en]

This study attempts to investigate the long-run Granger causality relationship between energy consumption, carbon dioxide emission and economic growth in India over the period 1971-2007. The augmented Dickey-Fuller test (ADF), Phillips-Perron test (PP) and KPSS test are used to test for Granger causality in cointegration models which take account of the stochastic properties of the variables. The most important result is that there is feedback causal relationship between energy consumption and economic growth in India which implies that the level of economic activity and energy consumption mutually influence each other; a high level of economic growth leads to a high level of energy consumption and vice versa. The value of the error correction term confirms the expected convergence process in the long-run for carbon emissions and growth in India which implies that emission reduction policies will hurt economic growth in India if there are no supplementary policies which seek to modify this causal relationship.

Place, publisher, year, edition, pages
Pula, Croatia: Juraj Dobrila University of Pula, Department of Economics and Tourism 'Dr. Mijo Mirkovic' , 2012. Vol. 25, no 3, 752-775 p.
Keyword [en]
Carbon emissions, Energy consumption, Growth, India
National Category
Medical and Health Sciences
URN: urn:nbn:se:liu:diva-86137ISI: 000310712700011OAI: diva2:574936
Available from: 2012-12-07 Created: 2012-12-07 Last updated: 2014-03-07Bibliographically approved

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