Do Better Institutional Arrangements Lead to Environmental Sustainability: Evidence from India

The efficient planning, execution, and management of institutional frameworks for climate change adaptation are essential to sustainable development. India, in particular, is known to be disproportionately vulnerable to the consequences of climate change. This study examines the effects of environmental taxes, corruption, urbanization, economic growth, ecological risks, and renewable energy sources on CO2 emissions in India from 1978 to 2018. Therefore, the ARDL model is used to draw inferences, and Pairwise Granger causality is also applied to demonstrate a cause-and-effect relationship. The empirical results show that corruption, environmental dangers, GDP, and urbanization positively influence India's carbon emissions. However, the results of short-run elasticities show that carbon emissions reduce ecological sustainability. Environmental hazards and costs, like other countries, impact India's carbon emissions. Therefore, decision-makers in India should set up strict environmental regulations and anti-corruption measures to combat unfair practice that distorts competition laws and policies. In addition, the government concentrates more on energy efficiency policies that diminish carbon emissions without hampering economic growth in the country.

Automated summary

Efficient institutional frameworks for climate change adaptation are crucial for sustainable development, especially in vulnerable countries like India. This study examines the impact of environmental taxes, corruption, urbanization, economic growth, ecological risks, and renewable energy sources on India's CO2 emissions. The results show that corruption, environmental dangers, GDP, and urbanization contribute positively to India's carbon emissions. However, short-term elasticity analysis reveals that carbon emissions are detrimental to ecological sustainability. It is important for decision-makers in India to implement strict environmental regulations and anti-corruption measures to combat unfair competition practices. Additionally, focusing on energy efficiency policies can help reduce carbon emissions without hindering economic growth.