• ISSN: 2301-3567 (Print)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly (2013-2014); Monthly (2015-2017); Quarterly (Since 2018)
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Mia Hu
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    • E-mail: joebm@ejournal.net
JOEBM 2020 Vol.8(3): 241-245 ISSN: 2301-3567
DOI: 10.18178/joebm.2020.8.3.644

Impact of Globalization, Financial Development, Energy Consumption, and Economic Growth on CO2 Emissions in India: Evidence from ARDL Approach

Naresh Chandra Sahu and Pushp Kumar
Abstract—This paper examines the impact of globalization and financial development on CO2 emission by incorporating energy consumption in the framework of the Environment Kuznets Curve (EKC) hypothesis in India during 1971–2014. To achieve this objective, autoregressive distributed model (ARDL) model is used. Overall globalization, economic globalization, political globalization, and social globalization are used as proxies for globalization. Domestic credit to financial sector as a percentage of GDP is used as a proxy for financial development. ARDL bounds test confirms the existence of cointegration among the variables. The results show that financial development has no significant effect on carbon emission. The study also finds the support for the EKC hypothesis. In addition, the findings show that overall globalization, social globalization, and political globalization affect CO2 emissions negatively, while economic globalization affects positively but not significantly. The study reveals that economic growth and energy consumption are found to have negative and significant effect on environment quality in India. The findings of the study would help policymakers to understand the role and impact of economic growth and energy consumption on environmental degradation and would guide them to implement policies and programmers to reduce the impact for achieving the global mandate for the reduction of CO2 emission.

Index Terms—Globalization, ARDL model, EKC hypothesis, financial development, CO2 emissions.

Naresh Chandra Sahu and Pushp Kumar are with School of Humanities, Social Sciences, and Management, Indian Institute of Technology Bhubaneswar, Odisha, India (email: naresh@iitbbs.ac.in, pk27@iitbbs.ac.in).

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Cite:Naresh Chandra Sahu and Pushp Kumar, "Impact of Globalization, Financial Development, Energy Consumption, and Economic Growth on CO2 Emissions in India: Evidence from ARDL Approach," Journal of Economics, Business and Management vol. 8, no. 3, pp. 241-245, 2020.

Copyright © 2020 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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