Empirical study of Carbon emission and economic development of Indian economy

Abstract

Economic growth and a sustainable environment are critical for any economy. However, for a government, there are conflicting objectives. An increase in economic growth often leads to environmental degradation. Thus, maintaining a balance between the two objectives is essential. The balance between the variables requires monitoring and the reduction of carbon emissions across various socio-economic sectors. Carbon accounting encompasses a wide range of activities related to the calculation, measurement, verification, and reporting of greenhouse gases. This paper explains the relationship between Carbon Emission Accounting and Gross Value Added for selected Indian sectors. The study uses secondary data sourced from the IEA and RBI websites. Multiple regression is used in the study to explore the relationship between carbon emissions and gross value added across different sectors. The results show that during a low-growth regime, there is an inverse relationship between economic growth and carbon emissions. However,  periods of accelerated economic growth depict a positive correlation between the variables. The research findings emphasizes the need for low-carbon technologies,  aimed at reducing emissions and promoting sustainable economic growth. This includes energy-efficient technology and replacing non-renewable energy with renewable energy.