Effect of energy consumption & economic growth on environmental degradation in India: A time series modelling

This study empirically investigates the impact of energy consumption (electricity consumption) and economic growth (in terms of real Gross Domestic Product) on the environmental degradation in form of CO2 emissions. The study aims to identify the interrelationship among the three variables viz. real GDP, electricity consumption & CO2 emissions. The analysis is based on the time series annual data for the period of 1971-2017. We tested the stationarity for the variables by applying Dicky Fuller test and examined the short run & long run causal relationships among electricity consumption, real GDP and CO2 emissions using Johansen Cointegration & Granger Causality approach. The Johansen cointegration test ascertains that some combinations of the two variables are cointegrated which concludes the long-term relationship among the defined variables. The results also indicate for a short run causality from electricity consumption to economic growth and to the CO2 emissions. The results conclude that India should take stringent measures to curb the surging emissions of greenhouse gases in which CO2 has a major portion. (C) 2019 The Authors. Published by Elsevier Ltd.