Modeling the stimulating factors of CO2 emissions in India

Aim: This study was attempted to explore the impact of population, affluence (per capita consumption or production) and technology on emissions using STIRPAT model over the period 1971-2017 in India. Methodology: The time series Vector Error Correction Model (VECM) approach was adopted to conduct stationarity test, cointegration analysis, stability test and Granger causality test. Results: Empirical results indicate a positive and significant impact of population between ages 15-64 towards emissions in long term. One percent change in population of this age group leads to 13.3 percent increment in emissions while growth in GDP is not a reason for emissions. Interpretation: Findings support the perspective of Malthusian that population growth increases environmental impacts. Therefore, while constructing the long-term strategies for emissions abatement, policymakers should concern these matters fully.