Energy Consumption, CO2 Emissions and Economic Growth: Evidence from India

Abstract

The study examined causality using static and dynamic frameworks, by considering energy consumption, C02 emissions and economic growth for India. It used the Granger approach (VECM framework) along with the Dolado and L체tkepohl approach. It found that CO2 Granger-causes GDP while energy consumption does not Granger-cause GDP, GDP does not Granger-cause CO2 while energy consumption Granger-causes CO2 emissions, and CO2 emissions Granger-causes energy consumption but GDP does not Granger-causes CO2 emissions. This implies that India should opt for policies that stress on energy conservation and efficient utilization of energy.