Relationship between Energy Consumption, CO2 Emissions, Economic Growth and Trade in India

Srinivasan P, Inder S. R. and Karthigai P. (2015), Relationship between Energy Consumption, CO2 Emissions, Economic Growth and Trade in India, International Journal of Economics, 2(1), 1-17.

17 Pages Posted: 28 Jan 2015

See all articles by Srinivasan Palamalai

Srinivasan Palamalai

Presidency University; Presidency University

Inder Ravindra

CHRIST (Deemed to be University)

Karthigai Prakasam

CHRIST (Deemed to be University)

Date Written: January 28, 2015

Abstract

The purpose of the study is to examine the causal nexus between various sources of energy consumption, viz. Coal, Crude Oil, Electricity and Natural Gas, CO2 emissions, economic growth and trade in India using the Perron unit root test, Gregory and Hansen cointegration test and Vector Error Correction Model. The study exhibits a long-run relationship between various sources of energy consumption, economic growth, CO2 emissions and trade in India. By and large, the empirical results confirm that economic growth fuels rate of various sources of energy consumption i.e. coal, crude petroleum, electricity and natural gas. The findings reveal that increase in CO2 emissions leads to achieve high level of economic activity in India. In addition, the study finds that foreign trade influences the various sources of non-renewable energy consumption in the long-term. However, the energy consumption do not significantly contributes towards promoting foreign trade, except crude petroleum, in the short-run.

Keywords: CO2 emissions; Cointegration; Energy consumption; Economic growth

JEL Classification: Q43, Q53, Q56

Suggested Citation

Palamalai, Srinivasan and Palamalai, Srinivasan and Ravindra, Inder and Prakasam, Karthigai, Relationship between Energy Consumption, CO2 Emissions, Economic Growth and Trade in India (January 28, 2015). Srinivasan P, Inder S. R. and Karthigai P. (2015), Relationship between Energy Consumption, CO2 Emissions, Economic Growth and Trade in India, International Journal of Economics, 2(1), 1-17., Available at SSRN: https://ssrn.com/abstract=2556686

Srinivasan Palamalai (Contact Author)

Presidency University ( email )

Bangalore, KS 560089
India

Presidency University ( email )

Bangalore, Karnataka, KS 560064
India
9611273853 (Phone)

HOME PAGE: http://https://presidencyuniversity.in/school-of-management-2/dr-p-srinivasan/

Inder Ravindra

CHRIST (Deemed to be University) ( email )

Hosur Road
Dharmaram PO
Bengaluru, IN Karnataka 560029
India

Karthigai Prakasam

CHRIST (Deemed to be University)

Hosur Road
Dharmaram PO
Bengaluru, IN Karnataka 560029
India

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