The study aims to estimate the Environmental Kuznets Curve (EKC) in the Indian context for the period of 1991-2018 by considering the role of economic growth, renewable energy, foreign direct investment, stock market size, energy intensity, and private investment in the energy sector with the help of autoregressive distributed lag (ARDL) cointegration technique. The results confirm the existence of an inverted U-shaped EKC relationship between economic growth and CO2 emission level. However, the estimation of turnaround point shows that CO2 levels have kept increasing past the turnaround point, indicating that income disparity is a decisive factor in determining emissions and is a better indicator than national income. Furthermore, results confirm the negative impact of economic growth and stock market size on the environment. In contrast, renewable energy, foreign direct investment, and energy intensity positively impact the environment in the long run. However, the impact of private investment is insignificant. Though the Indian economy continued to grow during the last few decades, the minimal investment towards renewable energy may not help to reduce the environmental problems. Hence, the nation's income growth alone does not solve the ecological issues in the long run. In addition, it requires an increase in private investment towards the development of India's renewable energy sector.
This study investigates the hedge and safe haven properties of individual commodity futures against stock market movements using a nonlinear regime-switching framework. Based on the results of Brock, Dechert and Scheinkman (BDS) test and information selection criterion, Markov-switching vector auto-regression (MS-VAR) model is applied with three regimes for gold and silver futures and with two regimes for crude oil, copper and zinc futures. The results demonstrate strong hedge and weak safe haven property of gold and silver futures, while it shows a weak hedge and weak safe haven potential of copper and zinc futures. Conversely, crude oil futures cannot be used as a safe haven against extreme stock market movements. In addition, portfolio analysis confirms that these findings provide significant information to investors for the construction of better risk-adjusted return portfolio.
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