• RELATIONSHIP BETWEEN THE ECONOMIC GROWTH AND CARBON EMISSIONS LEVEL IN JHARKHAND, INDIA: AN EKC APPROACH

AMIT BARA*, ANAMOL KUMAR LAL, UMASHANKAR SINGH

Abstract


The aim of this paper is to investigate the long run causal relationship between the economic development, carbon emissions level and energy consumption and examine the existence of EKC hypothesis in Jharkhand, India. The time series analysis is done for the period 2000-2020, covering a time span of, 21 years and the variables selected for analysis are 〖CO〗_2 emissions level, real Gross State Domestic Product, and energy consumption of Jharkhand, India. The time series data was collected from different sources. To investigate the short and long run relationship among these variables, the Johanson system co-integration test was performed and to test the causal relationship between the variables, VEC Granger Causality/Block Exogeneity Wald test was applied. Finally, to test the EKC hypothesis, OLS (Ordinary Least Square) regression was performed. The results of Johanson system co-integration test implies that there is a long run relationship or co-integration among the variables 〖CO〗_2 emissions, real GSDP, and energy consumption. The VEC Granger Causality/Block Exogeneity Wald test results implies that there is unidirectional relationship between real GSDP and both Carbon emissions and energy consumption. The results of quadratic form of EKC model indicates that there is an inverted U-shaped curve and the results of cubic form of EKC model shows that the inverted U-shaped curve does not exist between 〖CO〗_2 emissions and real GSDP, it would be N-shaped curve in Jharkhand, India.

Keywords


〖CO〗_2 emissions, EKC hypothesis, Energy consumption, Granger Causality, GSDP and VECM.

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