Sustainable Strategies for Indian coal sector: An Econometric Analysis Approach

Abstract

AbstractThe thermal power generation based on coal has been identified as the second-largest polluting industry, owing to greenhouse gas emissions caused by coal combustion. The pollution caused by the industry is not limited to generation but is manifested all through product usage. Though the colossal emphasis is being given to replacing coal-based power generation with renewable resources, we proved that Indian power generation would depend on coal for more than fifty percent of its demand in the near future. We employed a mix of linear cointegration, non-linear cointegration, and ARIMA followed by the VECM model to forecast the use of coal based on the Indian industrial index and the extent of electricity generated through coal combustion required to fulfill the demand. As pollution and carbon emissions manifest the coal usage cycle, policy implications and recommendations are drafted to mitigate the consequences, greening the coal usage cycle and coal supply chain.