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Asymmetric nexus among financial globalization, non-renewable energy, renewable energy use, economic growth, and carbon emissions: impact on environmental sustainability targets in India

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Abstract

Financial globalization has been argued to contribute to the increase/decrease in greenhouse gases and hence global temperature. India, according to International Energy Agency (IEA), is the third largest emitter of greenhouse gases globally, where the consumption of the few rich produces about seven times carbon emissions when compared with the poorest households. This current research explores the asymmetric effect of financial globalization on carbon emissions, while controlling for non-renewable energy utilization, renewable energy consumption, and economic expansion. The study uses yearly data stretching from 1970 to 2018 and batteries of econometric approaches in order to investigate these associations. The outcomes of the NARDL unveiled that (i) a positive (negative) shock in non-renewable energy utilization increases (decrease) carbon emissions; (ii) favorable (unfavorable) variations in renewable energy consumption decrease carbon emissions; (iii) a favorable shock in financial development contributes to carbon emissions; and (iv) a positive shock in growth impacts carbon emissions positively. Based on the empirical outcomes, we are of the opinion that policymakers should intensify efforts in putting in place appropriate environmental policy (green economy) that emphasizes the importance of renewable driven economy via energy-saving and energy-efficient technologies. Else, increased consumption on non-renewable energy sources among the few rich in India and any other countries struggling with implementing green economy would be devastating to both the immediate and future generations.

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Data availability

We sourced all data from World Bank Development Database.

Authors mentioned in the manuscript have agreed for authorship, read and approved the manuscript, and given consent for submission and subsequent publication of the manuscript.

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Authors and Affiliations

  1. Research Department, Central Bank of Nigeria, Abuja, Nigeria

    Seyi Saint Akadiri

  2. Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, 99040, Nicosia, Mersin-10, Turkey

    Tomiwa Sunday Adebayo

  3. Department of Finance & Accounting, Akfa University, 1st Deadlock, 10th Kukcha Darvoza Street, Tashkent, Uzbekistan

    Tomiwa Sunday Adebayo

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  1. Seyi Saint Akadiri
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  2. Tomiwa Sunday Adebayo
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Seyi Saint Akadiri is responsible for the study development. Tomiwa Sunday Adebayo sourced for data, methodology, and estimations.

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Correspondence to Seyi Saint Akadiri.

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Akadiri, S.S., Adebayo, T.S. Asymmetric nexus among financial globalization, non-renewable energy, renewable energy use, economic growth, and carbon emissions: impact on environmental sustainability targets in India. Environ Sci Pollut Res 29, 16311–16323 (2022). https://doi.org/10.1007/s11356-021-16849-0

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