A Study on the Effect of Economic Growth and Energy Consumption on Carbon Dioxide Emissions in India from 1970 to 2021

A Study on the Effect of Economic Growth and Energy Consumption on Carbon Dioxide Emissions in India from 1970 to 2021

The paper re-examines the relationship between economic growth, energy consumption and carbon dioxide emissions (CO2) for India over the period of 1970-2021. The study began with the main concern of whether there are any changes of empirical results compared to the previous studies on India. To achieve this objective, this study investigates the effect of the economic growth, energy consumption, population and trade openness on CO2 emissions. The paper also applies the conventional unit root test to build an appropriate model and deduce reliable results for this study. The empirical results indicate that there are strong and significant effects of economic growth and energy consumption on CO2 emissions, which are similar to the conclusions of previous studies on India. These outcomes imply that economic growth has increased CO2 emissions and that an increase in energy consumption plays a crucial role in increasing CO2 emissions as well. Therefore, the study results suggest that policymakers need to improve environmental quality and increase the efficiency of energy usage through the development of eco-friendly technologies to achieve sustainable economic growth while reducing CO2 emissions in India.