Exploring the effects of economic growth, population density and international trade on energy consumption and environmental quality in India

Rahman, Mohammad Mafizur (2020) Exploring the effects of economic growth, population density and international trade on energy consumption and environmental quality in India. International Journal of Energy Sector Management, 14 (6). pp. 1177-1203. ISSN 1750-6220


Abstract

Purpose – This paper aims to investigate the effects of economic growth, population density and international trade on energy consumption and environmental quality in India.

Design/methodology/approach – Taking annual data of 1971-2011, autoregressive distributed lag bounds testing technique is applied to explore the long run link between the series. The Granger causality test is used to determine the direction of causality between the variables.

Findings – The obtained results confirm the cointegration of variables, and economic growth and population density are found to have significant positive effects on energy consumption in both the short and long runs. CO2 emissions are also positively and significantly affected by population density and energy consumption, and negatively affected by economic growth.

Originality/value – The paper is original and valuable in the sense that it has considered two relevant additional explanatory variables, namely, population density and trade openness, which got little attention in the past. This research is an improvement over the previous studies because it has looked at the separate effects of explanatory variables on energy consumption, in addition to the effects on carbon emissions. Therefore, the findings of this research are more reliable because this adopted methodology is better and extensive, and the author has properly addressed the issue of omitted variable bias.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 29 Jun 2020 01:52
Last Modified: 22 Apr 2021 01:20
Uncontrolled Keywords: CO2 emissions; energy sector; international trade; energy consumption; population density; economic growth; India
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objectives (2008): D Environment > 96 Environment > 9601 Air Quality > 960199 Air Quality not elsewhere classified
B Economic Development > 85 Energy > 8501 Energy Exploration > 850199 Energy Exploration not elsewhere classified
B Economic Development > 85 Energy > 8598 Environmentally Sustainable Energy Activities > 859899 Environmentally Sustainable Energy Activities not elsewhere classified
Identification Number or DOI: https://doi.org/10.1108/IJESM-11-2019-0014
URI: http://eprints.usq.edu.au/id/eprint/38649

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