Examining the Environmental Kuznets Curve for India Considering Electricity Consumption, Emission, Economic Growth, Inward FDI, Openness to Trade and Urban Agglomeration

Growing concern for ensuring sustainability amidst increasing energy demand is the motivating factor for this study. This study revisits the environmental Kuznets curve for India, considering unique variables like carbon dioxide emission, electricity consumption, inward foreign direct investment, economic growth, trade openness and urban agglomeration from 1990 to 2022. Greenhouse gas emissions for India are forecasted to be 2.1 to 2.4 times higher in 2050 than the current levels that demand stringent action on the business and environment front. ARDL model with error correction cointegration was suitable for this study. Results of the ARDL model indicate that there is a strong cointegrating relationship among the study variables. All the independent variables are instrumental in increasing CO2 emission. Results of the study indicate that, except for inward FDI, all the other variables have long-term cointegrating relations, which indicates that inward FDI is becoming more environment conscious and policies oriented towards inward FDI are more focused towards sustainable development.