An Autoregressive Distributed Lag and Environmental Kuznets Curve Approach: Linking CO2 Emissions and Electricity Access in India

Abstract

This study evaluates the impact of foreign direct investment (FDI), per capita GDP, renewable energy consumption, and urbanization on India’s CO2 emissions over the period 1990–2023. In the context of rapid economic growth and urbanization, India faces major challenges related to environmental sustainability. Using the ARDL (Autoregressive Distributed Lag) model and the Environmental Kuznets Curve (EKC), this research analyzes the complex relationships between these factors and CO2 emissions. The results highlight the existence of an N-shaped EKC curve with two inflection points at GDP values. This study highlights the essential role of renewable energy consumption in reducing emissions and improving access to electricity in promoting sustainable development. The findings provide valuable insights into economic and energy policies, highlighting the need to balance economic growth with environmental protection.