Long-term equilibrium relationship between urbanization, energy consumption and economic activity: Empirical evidence from India

Ghosh, Sajal; Kanjilal, Kakali

doi:10.1016/j.energy.2013.12.052

Cited by 142 publications

(59 citation statements)

References 37 publications

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“…This migration has made major contributions to the nation's economic growth, however, it can also impose tremendous pressure on existing physical and social space and increase energy consumption. So, the sustained economic growth and related environmental degradation (CO 2 emissions) should be an integral part of long-term energy and emission scenario planning (Ghosh and Kanjilal, 2014).…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

“…The first category of studies found evidences supporting unidirectional or bidirectional causality. Taking India as an example, Ghosh and Kanjilal (2014) demonstrated a unidirectional causality running from energy consumption to economic activity. Al-mulali et al (2013) found that while 60% of Latin American and Caribbean countries maintained a positive bidirectional long-run relationship between energy consumption, CO 2 emissions, and economic growth, the remaining 40% yield mixed results.…”

Section: Introductionmentioning

confidence: 99%

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The relationship between economic growth, energy consumption, and CO2 emissions: Empirical evidence from China

Wang

Fang

et al. 2016

Science of The Total Environment

484

150

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Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The relationship between economic growth, energy consumption, and CO2 emissions: Empirical evidence from China

Wang

Fang

et al. 2016

Science of The Total Environment

484

150

View full text Add to dashboard Cite

“…Neutrality hypothesis (Growth >< Energy) - Masih and Masih (1996) (1955-1990 -Asaf-Adjaye (2000) (1973) -Fatai et al (2004) (1960-1999) -Gupta and Sahu (2009) (1960) -Mallick (2009) (1970-2005, for coal) - Ghosh and Kanjilal (2014) (1971) -Yang and Zhao (2014) (1970 - Cheng (1999) (1952) -Ghosh (2002) (1950-1997) -Mallick (2009) (1970-2005, for oil and electricity) - Shahbaz et al (2016Shahbaz et al ( ) (1971Shahbaz et al ( -2012 - Paul and Bhattacharya (2004) (1950-1996 - Abbas and Choudhury (2013) (1972, agricultural sector) - Ahmad et al (2016Ahmad et al ( ) (1971Ahmad et al ( -2014 - Asghar (2008Asghar ( ) (1971Asghar ( -2003 - Alam et al (2011) (1971-2006) (1971 These different results may be explained by the methods used (e.g., autoregressive distributed lag (ARDL) ...…”

Section: Feedback Hypothesis (Growth ↔ Energy)mentioning

confidence: 99%

“…Abbas and Choudhury (2013) validated the feedback effect (or bidirectional causality) between electricity consumption and GDP in India's agricultural sector over the 1972-2008 period. Ghosh and Kanjilal (2014) exposed the unidirectional causality running from energy consumption to economic activity. Yang and Zhao (2014) found that energy consumption causes economic growth.…”

Section: Introductionmentioning

confidence: 99%

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

et al. 2017

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This paper investigates the asymmetric relationship between energy consumption and economic growth by incorporating financial development, capital and labour into a production function covering the Indian economy from 1960Q 1 -2015Q 4 . The nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables. An asymmetric causality test is also employed to examine the causal association between the considered variables. The results indicate cointegration between the variables in the presence of asymmetries. The asymmetric causality results show that only negative shocks in energy consumption have impacts on economic growth. In the same vein, only negative shocks in financial development have impacts on economic growth. By contrast, symmetrically, capital formation causes economic growth. Finally, over the study period, a neutral effect exists between the labour force and economic growth in India. The implications of these results for growth policies in India are also discussed.Keywords: Financial Development, Energy, Growth, India, Asymmetries JEL classification: O13 Acknowledgements: We would like to thank the editor, Professor Richard Tol (University of Sussex, Brighton, UK), as well as the three anonymous reviewers, for their valuable comments and suggestions that helped us improve our paper significantly. We also thank the participants at the 7 th International Research Meeting in Business and Management (IPAG, Nice, France, 11-12 July 2016). We are also grateful to Jawad Kazmi for his technical assistance. The authors' are responsible for any remaining errors or shortcomings. IntroductionThis study uses quarterly data to investigate the relationship between energy consumption and economic growth in India over the 1960-2015 period. Financial development (measured by domestic credit to the private sector), 1 capital formation and labour force 2 are also included in the Cobb-Douglas production function. This study's main contribution to the existing literature on the energy-growth nexus concerns its examination of the potential asymmetric relationship between the variables. Taking this asymmetry into account is important because a positive or negative variation on one variable does not have the same impact on the other variable. The existence of an asymmetric relationship between two variables can be caused by numerous factors, one of which concerns the complexity of economic systems and the mechanisms that generate the variables under study. This complexity may induce various channels through which one variable affects another. In our case, the relationship between energy consumption and economic growth has been found to be very complex because previous studies have shown four possible impact channels: the growth, conservative, feedback and neutrality hypotheses. 3 On the one hand, the relationship between energy consumption and financial development can also be very complex because numerous impact channels can exist between them...

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“…In the absence of significant policies which would improve the living conditions in these areas, people will continue to live at risk of poor health, violence, and poverty (Nakamura, 2014). In particular, improving access to energy and electricity is critical for development (Ghosh and Kanjilal, 2014;Parikh, 2012). This article sheds some light on the challenges faced by policymakers in the electrification of slums by contrasting their plight with the situation in rural and planned urban areas.…”

Section: Introductionmentioning

confidence: 99%

Quantifying slum electrification in India and explaining local variation

Aklin

Bayer

Harish

et al. 2015

Energy

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Unreliable electricity supply is a major obstacle to economic development in countries such as India. While electricity problems in the rural areas are widely recognized, scholars have yet to analyze the situation in urban slums. Drawing on 2004-2005 survey data from the India Human Development Survey, we document the electricity situation in slums. We find that while households located in slums are less likely to have access to the electricity grid than other urban households, the situation is significantly better than in rural areas. Based on simulations, we find that a median household in a slum has 70% chance of having electricity. This number decreases to 50% for a household in a rural area and increases to 80% for households in urban areas. As to daily hours of electricity available for connected households, urban slums also fall between other urban and rural areas. Finally, we show that these conditions vary considerably by state. Slums located in states with low corruption and leftist governments have better electricity access on average than those in states suffering from corruption or that are ruled by rightist parties.

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Long-term equilibrium relationship between urbanization, energy consumption and economic activity: Empirical evidence from India

Cited by 142 publications

References 37 publications

The relationship between economic growth, energy consumption, and CO2 emissions: Empirical evidence from China

The relationship between economic growth, energy consumption, and CO2 emissions: Empirical evidence from China

Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis

Quantifying slum electrification in India and explaining local variation

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