Energy expansion and Economic development as Determinants of Environmental Degradation in India: An Empirical Assessment
1Sanjiv Sarkar* and 2B. Mathavan**
1*,2**Department of Economics, Faculty of Arts, Annamalai University, Annamalai Nagar, Chidambaram – 608002 (India) Address for Correspondence : Sanjiv Sarkar Ph.D Research Scholar, Department of Economics, Faculty of Arts, Annamalai Nagar, Chidambaram, Annamalai University, Tamil Nadu – 608002 (India) Email: sanjivsarkar885@gmail.com Contact Details of Authors: 1*Sanjiv Sarkar – 9476056690 ORCID ID: https://orcid.org/0009-0002-5733-4426 2**B. Mathavan – 9042218660 ORCID ID: https://orcid.org/0000-0001-9908-8994
ABSTRACT
This study investigates the impact of energy expansion and economic development on environmental degradation in India using annual data from 1990 to 2022. Employing the ARDL bounds-testing approach and an extended STIRPAT framework, the analysis examines both short-run and long-run relationships between CO2 emissions, energy consumption, fossil fuel dependency, renewable energy adoption, and economic growth. The results indicate that total energy consumption and fossil fuel share significantly and positively influence CO2 emissions, while renewable energy usage demonstrates a negative and mitigating effect. Economic development is also found to contribute to rising emissions, reflecting India’s rapidly industrializing economy. The ARDL model confirms a stable long-run equilibrium among the key variables, and the ECM reveals a moderate adjustment speed toward long-run balance.