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Sustainable Synergy: Exploring the Environmental Landscape of Energy Transition and Economic Growth for India
Abstract
Understanding the interrelationships between economic growth, environmental quality, and sustainable development is pertinent for India. This connection is marked by reciprocal causation and feedback mechanisms-energy consumption stimulates economic growth by providing the necessary fuel for production and consumption. However, economic expansion influences energy consumption patterns by altering the industrial structure, adopting new technologies, and changing income levels. This study investigates the relationship between economic growth, energy transition, and sustainable development in India from 1990 to 2020. It also estimates the impact of industrialisation and trade openness on economic growth using an Auto Regressive Distributed Lag (ARDL) approach. The results show a positive and significant relationship between environmental degradation (CO2) and economic growth. Policymakers and stakeholders must develop efficient energy policies and effective, sustainable development strategies. The policies should facilitate economic expansion and safeguard energy stability, ecological endurance, and social well-being.
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