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Emission-decoupling accounting framework of the Environmental Kuznets Curve (EKC) for India with structurally decomposed production and consumption based drivers

Suvajit Banerjee (Department of Economics and Politics, Visva-Bharati University, Santiniketan, India)

Management of Environmental Quality

ISSN: 1477-7835

Article publication date: 20 June 2022

Issue publication date: 6 July 2022

151

Abstract

Purpose

The study attempts to capture the comprehensive accounting framework of the inverted U-shaped Environmental Kuznets Curve (EKC) hypothesis relevant for an emerging economy based on an emission-growth decoupling approach. The paper intends to re-examine and analyze the roles of influential production- and consumption-based drivers for the prominently observable increasing pattern of the energy-related carbon dioxide (CO2) emissions from the Indian Territory.

Design/methodology/approach

The study adopted an annual time series structural decomposition analysis (SDA) based on a single-country input-output framework for the period 2000–2014 to identify and elaborate the contribution of the responsible drivers to the production-based carbon emission of India. The study further proceeded to analyze a decoupling index to explore the features of economic growth and carbon emissions comovement over time.

Findings

The results from the empirical exercise reflect a pattern of consistently developing relative decoupling character for most of the production-based drivers. The paper produces insightful results on the pattern of energy-related CO2 emissions from the perspective of the EKC hypothesis and highlights the importance of consumption-based drivers as substantial contributors to the economy-wide CO2 emissions to be controlled for effective decoupling of the aggregate production-based CO2 from the volume of aggregate production to enhance the opportunities for sustainable economic development.

Originality/value

The study uniquely correlates the declining trend of the emission intensity of India's gross domestic product (GDP) and the inclining trend of the overall emissions due to ever-increasing gross output in the form of a comprehensive accounting relationship.

Keywords

Acknowledgements

Neither the manuscript nor any parts of its content are currently under consideration or published in another journal. There is no funding associated with this research and publication.

Conflict of interest: The author hereby declare that there is no conflict of interest associated with this publication, and there has been no significant financial support for this work that could have influenced its outcome.

Citation

Banerjee, S. (2022), "Emission-decoupling accounting framework of the Environmental Kuznets Curve (EKC) for India with structurally decomposed production and consumption based drivers", Management of Environmental Quality, Vol. 33 No. 5, pp. 1305-1325. https://doi.org/10.1108/MEQ-03-2022-0050

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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