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

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-a-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. (C) 2019 Elsevier B.V. All rights reserved.