The results show that positive shocks to economic growth have detrimental long- and short-term effects on environmental quality, whereas negative shocks have no effect.
Authors
Arunava Bandyopadhyay, Lecturer, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India; Vinod Gupta School of Management, Indian Institute of Technology Kharagpur, West Bengal, Kharagpur, India.
Soumen Rej, Vinod Gupta School of Management, Indian Institute of Technology Kharagpur, West Bengal, Kharagpur, India; School of Business, University of Petroleum & Energy Studies, Dehradun, India.
Narasingha Das, Economists for Peace and Security—Australia Chapter, Sydney, Australia.
Md. Emran Hossain, Department of Agricultural Finance and Banking, Bangladesh Agricultural University, Mymensingh, 2202, Bangladesh.
Md. Sayemul Islam, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, Bangladesh.
Pinki Bera, Department of Economics, Vidyasagar University, Midnapore, India.
Thorani Yeediballi, GITAM School of Business, GITAM, Visakhapatnam, India.
Summary
This study aims to provide a new perspective on environmental studies by examining the influence of environmental-related technological innovation, foreign direct investment, renewable energy consumption, and economic growth on the climate change index (CCI), a novel proxy for environmental quality indicators.
From the econometric standpoint, this study employs the “non-linear autoregressive distributed lag” model and spectral causality over the period of 1999–2018 for India. The results show that positive shocks to economic growth have detrimental long- and short-term effects on environmental quality, whereas negative shocks have no effect.
While a positive shock has an insignificant impact, a negative shock to environmental technology innovation has a long-term negative impact on environmental quality. This study provides evidence for the pollution halo hypothesis in India. Besides, a long-term negative shock to the usage of renewable energy fosters environmental degradation.
Furthermore, in short-, medium-, and long-term frequency, spectral causality demonstrates unidirectional causation from CCI to environmental-related technological innovation. Bidirectional causation is demonstrated between the CCI and renewable energy consumption in the short and medium term.
In addition, environmental-related technological innovation and foreign direct investment are demonstrating a bidirectional relationship in the short term. This study has advocated the Sustainable Development Goals (SDGs)–centric policy paradigm, which can assist the Indian government in achieving SDG-13 (mitigating climate change) and SDG-7 (clean energy consumption).
Published in: Environmental Science and Pollution Research
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