Chapter 16: Economic Growth at the Cost of Carbon Emission: Empirical Evidence from India

It is a well-known fact that economic development and rise in the volume of trade due to globalization have led to more production which has further led to the increase in the emission of carbon dioxide in the environment. Under the backdrop, the aim of this chapter is to examine the relationships among per capita CO₂ emissions as the proxy for exploitation of the environment with international trade and per capita GDP in India. It analyzed cointegration and short-run causal relationships between the variables based on a time series data set for the period of 1979–2018. The data found to be stationary at first integration; hence the researchers ran cointegration. The study found that the carbon emissions are an outcome of economic growth and more and more trade with the foreign countries.