An Indian story on carbon emission, energy consumption, trade openness, and financial development

Abstract

This paper empirically studies the impact of energy consumption, financial development, and trade openness on India's carbon emission for 1971 to 2014 and validates the environmental Kuznets curve hypothesis for India. The Autoregressive Distributed‐lagged model (ARDL) bound test is used to test the existence of cointegration among the key variables. The results exhibit a U‐shaped relationship between carbon emission and energy consumption in the long run. Through this study, we find out the maximum threshold value of energy consumption per capita to 757 kg of oil equivalent, which is above the current consumptions levels—indicating a rise in carbon emission shortly. Further, the long‐run results show that a 1% increase in trade openness will decrease carbon emission by 0.11%, which is a display of technological effect over scale effect and composition effect. Financial development does not exhibit a significant relation to carbon emission. The results are in line with the literature on climate change in emerging countries. This empirical work gives some insight into policy issues that have to be looked into further.

The shadow economy and sustainable development: The role of financial development

“…Financial development is obviously an important indication of economic development in each country (Aizenman, Jinjarak, & Park, ; Calderón & Liu, ; Christopoulos & Tsionas, ; Menon, ). However, the shadow economy is a major obstacle for economic growth especially for developing countries (Akadiri, Gungor, Akadiri, & Bamidele‐Sadiq, ; Gharleghi, Jahanshahi, & Thoene, ; Menon, ).…”

“…These figures are 15 and 33.6% for the countries considered in this study. The causes and effects of the shadow economy have been a topic of extensive research which is documented in the literature (e.g., Bose, Capasso, & Wurm, ; Capasso & Jappelli, ; Menon, , ; Schneider & Enste, ).…”

Multi-Energy Concern as an Example of the Implementation of Agenda 2030: Poland as a Case Study

“…The global coronavirus pandemic that prevails to this day has caused a disorder of the economic order, for example, by slowing down the economy, causing stagnation in money markets, or, finally, limiting the wealth of investment portfolios of many international companies, which results in a limited capital (resulting from greater investment risk and the need to accumulate capital in a period of uncertainty) economic) with the need to carry out mergers and acquisitions. This is especially visible in the catering, hotel, tourism, and automotive industries [1][2][3]23]. On the other hand, there is no similar tendency in the energy sector, which prompts the assessment of this phenomenon in this study.…”

“…The purpose of the agreement is to reduce the negative impact of greenhouse gas emissions on the natural environment by implementing specific solutions on a national (national action plans) and international scale (e.g., providing support to countries in reducing the effects of climate change). During the COP26 (Conference of the Parties) climate summit held in November 2021 in Glasgow, Poland committed to a gradual shift away from coal by the 40s of the 21st century, using, inter alia, the resignation from investments in coal, a just transformation of coal sector employees (on 28 May 2021, a social agreement was signed with miners assuming a schedule for the gradual closure of mines), or an increase in spending on the development of clean technologies [1][2][3].…”

Does financial inclusion spur carbon emissions in India: an ARDL approach

“…, 2020). Third, the previous study conducted on Indian economy considered the private sector credit as proxy for financial inclusion (Menon, 2019); hence, this parameter does not provide the comprehensive picture of the financial inclusion in the economy. Against this backdrop, the present study attempts for a more comprehensive analysis by creating financial inclusion index which is developed by using parameters of access, penetration and usage (World Bank, 2020).…”