AN EMPIRICAL ANALYSIS ON ECONOMIC DEVELOPMENT AND CO2 EMISSION IN INDIA BY USING ENVIRONMENTAL KUZNETS CURVE

Abstract

India is the second largest population country in the world, and it has endowed with various natural resources, but in the last few decades, the environmental resources are continuously deteriorated due to economic development and human activities. The air pollution due to  CO₂ emissions is one of the biggest challenges for India as well as at the global level. Therefore, this paper analyze the empirical relationship between Economic development as GDP per capita and per capita CO2 emissions as Environmental pollution by using Environmental Kuznets Curve. This research paper is based on secondary data and collected from the International Energy Agency (IEA), the World Bank, and various reports. For data analysis, the correlation and linear regression was used. The linear regression result shows that the R² value is 0.958 and indicated that 95 percent of (dependent variable) per capita CO2 emissions was influenced by the GDP per capita of India. The study found that the relationship between the GDP per capita of India and per capita CO2 emissions have an upward sloping curve and India’s Environmental Kuznets Curve is not U shape. This paper recommended the need of environmental policies to reduce CO2 emissions and its was helps to reduce the other various environmental issues such as global warming and climate change, etc.