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Validation of the environmental Kuznets curve and role of economic globalization: an aggregate and sectoral analysis of an Indian economy

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Abstract

This research investigates the validation of the environment Kuznets curve (EKC) at aggregate and sectoral levels for the Indian economy both. The study covers the period 1970–2020. The stationarity of the variables was also confirmed by some traditional unit root tests, and structural breaks were also determined by the Zivot-Andrews test. The autoregression distributive lag model (ARDL) bound test is deployed to observe the cointegration between variables with different structural breaks. Additionally, we investigate short-run, long-run, and combined causal relations among the variables by employing the vector error correction model (VECM) test. The results validate the presence of EKC not only at the aggregate level but also at the sectoral level. Moreover, energy consumption increases CO2 emissions, while economic globalization reduces CO2 emissions. The findings reveal that economic globalization is beneficial to environmental quality, while energy consumption hampers it in India. As a result of these findings, policymakers in India should include economic globalization as an essential element in the carbon emissions function while designing an enhanced economic policy framework that leads to low carbon-driven, sustainable, and inclusive economic growth at the aggregate and disaggregated levels.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author upon reasonable request.

Notes

  1. Few of studies considered the important variable, globalization, in the emissions function, but the picture is not clear.

  2. http://wdi.worldbank.org/table

  3. http://www.teriin.org/projects/teddy/pdf/Chap-1-2015.pdf

  4. A similar outcome on EKC is noted by Kanjilal and Ghosh (2013) for India.

  5. http://globalization.kof.ethz.ch/

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Authors and Affiliations

  1. Department of Economics, GC Women University Sialkot, Kutchehry Road, Sialkot, Punjab, 51310, Pakistan

    Ashfaq Ahmad & Muhammad Ilyas

  2. Department of Business Administration, GC Women University Sialkot, Kutchehry Road, Sialkot, Punjab, 51310, Pakistan

    Muhammad Mobeen Shafqat

  3. Department of Sociology, GC Women University Sialkot, Kutchehry Road, Sialkot, Punjab, 51310, Pakistan

    Muhammad Umair Ashraf

  4. Department of Environment Sciences, GC Women University Sialkot, Kutchehry Road, Sialkot, Punjab, 51310, Pakistan

    Afshan Urooj

  5. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China

    Zhao Yu huan

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Conceptualization, writing-original draft: Dr. Ashfaq Ahmad, Supervision: Dr. Zhao Yuhuan, Data collection: Dr. Muhammad Mobeen Shafqat, and Analysis done by Dr. Muhammad Ilyas. All authors read and approved the final manuscript.

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Ahmad, A., Shafqat, M.M., Ilyas, M. et al. Validation of the environmental Kuznets curve and role of economic globalization: an aggregate and sectoral analysis of an Indian economy. Air Qual Atmos Health 16, 2035–2051 (2023). https://doi.org/10.1007/s11869-023-01390-5

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  • DOI: https://doi.org/10.1007/s11869-023-01390-5

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