Can increase in the share of renewable energy in economic growth shift turning point of ekc? Evidence from time-series analysis in India

Abstract

Global warming has a massive bearing on living being and the country. The primary perpetrator of global warming is Carbon dioxide emission. This pa-per tried to find out the interrelationship between GDP growth and carbon dioxide emissions and the potential of renewable energy use to reduce car-bon dioxide emission on industrial activities in the short and long-run. The interrelationship between GDP growth and CO2 emission has depicted in this paper. Auto-Regressive Distributive Lag of cointegration model was used to show the casual relationship among growth variables and CO2 emis-sion. The long-run and short-run relationship of variables have been ana-lyzed by using time series data from 1971 to 2016. This study basically fo-cuses on the existence of EKC in India. The objectives of this paper are to find out the existence of renewable energy to reduce CO2 emission in India. Positive coefficient of renewable energy in the findings could be due to the lack of data and also due to the limited renewable resources in India during that period and It has been noticed that energy consumption and urban pop-ulation negatively impact air pollution parameters, thus directing towards higher emission standards and emphasizing the need for transforming fossil fuel-based energy profile towards renewable energy. The results on trade openness and renewable energy suggest that India should moderate its levels of energy-intensive trade and focus on a trade involving clean energy tech-nologies, which can be sustained only by increasing endogenous renewable energy capacity. © 2020 L&H Scientific Publishing, LLC.