The asymmetry effect of industrialization, financial development and globalization on CO2 emissions in India

Abstract

This study investigates the effects of India's economic growth, industrial development, fossil fuel energy output, financial development and globalisation on CO2 emissions. Using annual time series data from 1971 to 2019, the study used Non-Linear autoregressive distributive lag (NARDL) to examine the relationship. The findings show a long-term association between CO2 emissions and other factors. While industrialization and economic expansion have a large and long-term positive impact on CO2, globalisation considerably cuts CO2 emissions. The study's findings add to the pool of knowledge by presenting fresh data on the connection between environmental factors and developmental measures. These findings are crucial for policymakers and governmental agencies to focus on economic development without endangering environmental damage. India has to enact laws that support cleaner production practises and the growth of non-polluting sectors in order to uphold its commitment to sustainability. It must also discourage CO2 emitting industries concurrently.

Keywords

• NARDL
• Financial development
• Economic growth
• Industrial growth
• Globalisation
• Carbon emissions