Causality among Energy Consumption, CO2 Emission, Economic Growth and Trade: A Case of India

Title

Causality among Energy Consumption, CO2 Emission, Economic Growth and Trade: A Case of India

Creator

Srinivasan P.; Ravindra I.S.

Description

The present study attempts to examine the causal nexus between energy consumption, CO2 emissions, economic growth and trade in India using the Perron (1989) unit root test, Gregory and Hansen (1996) cointegration test and vector error-correction model (VECM). The study results exhibit a long-run relationship between energy consumption, CO2 emissions, economic growth and trade in India. The empirical results confirm that energy consumption influences the economic activity in the short run, implying that higher rate of economic growth is driven by consumption demand for energy in the economy. This is also well in consistence with the findings of Paul and Bhattacharya (2004) in the Indian context. Further, the study detects one-way causation that exists from energy use to CO2 emission and trade, and CO2 emissions to economic growth in the short run. 2015 Indian Institute of Foreign Trade.

Source

Foreign Trade Review, Vol-50, No. 3, pp. 168-189.

Date

2015-01-01

Publisher

Sage Publications India Pvt. Ltd

Subject

causality; CO₂ emissions; cointegration; economic growth; Energy consumption; Q43; Q53; Q56; trade

Coverage

Srinivasan P., Xavier Institute of Management Entrepreneurship, Electronics City, Phase II, Hosur Road, Bangalore, Karnataka, India; Ravindra I.S., Research Scholar, Department of Economics, Christ University, Bangalore, Karnataka, India

Rights

Restricted Access

Relation

ISSN: 157325

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1177/0015732515589441

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