The environmental Kuzents Curve and the role of coal consumption in India: cointegration and causality analysis in an open economy

By Aviral Kumar Tiwari, Shahbaz Muhammad. 2012

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This study investigates the dynamic relationship between coal consumption, economic growth, trade openness and CO2 emissions for Indian economy. In doing so, Narayan and Pop structural break unit test is applied to test the order of integration of the variables. Long run relationship between the variables is tested by applying ARDL bounds testing approach to cointegration developed by Pesaran et al. (2001). The results confirm the existence of cointegration for long run between coal consumption, economic growth, trade openness and CO2 emissions. Our empirical exercise indicates the presence of Environmental Kuznets Curve (EKC) long run as well as short run. Coal consumption as well as trade openness contributes to CO2 emissions. The causality results report the feedback hypothesis between economic growth and CO2 emissions and same inference is drawn between coal consumption and CO2 emissions. Moreover, trade openness Granger causes economic growth, coal consumption and CO2 emissions.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/4ea6554d297d932f5c12aaf789bb2caad23046a2

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Citations in the corpus

Financial development and environmental quality: The way forward (2016, background): “For instance, Akbostanci et al. (2009), Iwata et al. (2010), Shahbaz et al. (2012), Tiwari et al. (2013), Lau et al. (2014) and Ozturk and Al-Mulali (2015) have validated the EKC for Turkey, France, Pakistan, India, Malaysia and Cambodia, respectively.”
Time-Varying Analysis of CO2 Emissions, Energy Consumption, and Economic Growth Nexus: Statistical Experience in Next 11 Countries (2016, background): “Tiwari et al. (2013) CO2-Energy-GDP India Bounds testing cointegration 1966–2009 EKC exists.”
Is Globalization Detrimental to CO2 Emissions in Japan? New Threshold Analysis (2017, background): “[37] also validated the EKC hypothesis for the Indian economy.”
Does the quality of institutions modify the economic growth-carbon dioxide emissions nexus? Evidence from a group of emerging and developing countries (2020, result): “Wang et al. (2018). These ambiguous results call for further empirical”