INDIA'S ECONOMIC RISE: EXPLORING THE LINK BETWEEN ECONOMIC GROWTH AND CARBON EMISSIONS

This paper examines the relationship between economic growth and carbon emissions in India. The variables selected for understanding the relationship are GDP and CO2 emissions. GDP, representing economic growth, and CO2 emissions are analyzed for the period from 1977 to 2022. The study employs Granger causality to determine the presence of unidirectional or bidirectional causal relationships between these variables. The findings indicate a unidirectional causality from carbon emissions to GDP. The VAR model is used to understand the relationship between the variables. The results revealed that past CO2 emissions positively impact current GDP, suggesting a linkage between economic growth and CO2 emissions. The findings suggest that efforts to reduce carbon emissions without incorporating energy efficiency measures could negatively impact the country's economic growth. These implications are significant for policymakers and researchers in the field of environmental sustainability and economic development.