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<p>This study examines the dynamic relationship between environmental degradation, energy composition, and economic growth. Utilizing annual data spanning from 1985 to 2022, our findings reveal a long-term equilibrium between the total energy consumption, CO₂ emissions, and electricity generation from fossil fuels, renewables, and nuclear sources, alongside economic growth in India. Granger causality tests show that fossil fuel and nuclear energy use significantly predict CO₂ emissions and growth, with limited reverse effects. Variance decomposition indicates that renewable energy helps reduce emissions, while fossil fuel-based energy consumption increases them. The policy implications underscore the necessity for enhanced investment in renewable energy, improved energy efficiency, and a diversified energy portfolio for India.</p>

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India’s green growth puzzle: decoding the interplay between carbon dioxide emissions, energy mix, and GDP

  • 期刊论文

  • 发表日期：

    2025年9月1日

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  • Rohan Kunwar,
  • Krish Vora,
  • Kashika Sharma,
  • Rohit Raj,
  • Debi Prasad Bal

摘要

This study examines the dynamic relationship between environmental degradation, energy composition, and economic growth. Utilizing annual data spanning from 1985 to 2022, our findings reveal a long-term equilibrium between the total energy consumption, CO₂ emissions, and electricity generation from fossil fuels, renewables, and nuclear sources, alongside economic growth in India. Granger causality tests show that fossil fuel and nuclear energy use significantly predict CO₂ emissions and growth, with limited reverse effects. Variance decomposition indicates that renewable energy helps reduce emissions, while fossil fuel-based energy consumption increases them. The policy implications underscore the necessity for enhanced investment in renewable energy, improved energy efficiency, and a diversified energy portfolio for India.