Energy efficiency and carbon neutrality target in India: a wavelet quantile correlation perspective

Abstract

The overwhelming effects of climate change on the living environments has prompted several countries, including India into rolling out different carbon neutrality agenda. On this background, this study activated policy framework towards the attainment of India’s 2070 net-zero emission target via energy efficiency. The roles of green-technology, affluence and population were also rectified. With quarterly series spanning 1997Q1–2021Q4 and estimates of the novel wavelet quantile correlation technique, the following insights sufficed. Energy-intensity generated significant carbon de-escalation effects mainly in the medium and long term. There were evidence of long-term asymmetric effects between them. Carbon intensity as well as green technology aggravated carbon emissions in both short and medium term, however, over the long term, they generated carbon neutrality effects. The empirical estimates also validated the environmental Kuznets curve (EKC) ideology given the long-term environmental quality enhancing attributes of GDP. India’s population represents a major challenge for the net-zero emission target. But this can be curtailed through adequate orientations as prescribed in the LiFE progrmme. Among other considerations, India’s net-zero target is realisable if the country extends its low-carbon energy profiles and deploy more green technologies.

Keywords

• carbon neutrality
• energy efficiency
• energy intensity
• carbon intensity
• kaya identity
• wavelet quantile correlation