Revisiting Environmental Kuznets Curve (EKC) and Renewable Energy Consumption in India

Abstract

The relationship between renewable energy consumption, economic growth, and environmental sustainability has been extensively studied, particularly in the context of the Environmental Kuznets Curve (EKC) hypothesis. The EKC posits an inverted U-shaped relationship between economic growth and environmental degradation, where pollution initially rises with income levels and subsequently declines after reaching a certain income threshold. One of the most important issues in a current era is striking a balance between environmental sustainability and economic prosperity. Considering the said background, this study aims to find out the growth rate of renewable energy consumption per-capita, Gross domestic product per-capita and CO2 emission per-capita. Side by side, it is also trying to revisit the existence of Environmental Kuznets Curve in India and how renewable energy consumption per-capita is affected by Gross domestic product per-capita and CO2 emission per-capita. All the data has been collected from World Development Indicator (WDI), World Bank for the period 1990-2020 using a multiple regression analysis. The result suggests that the growth rate of renewable energy consumption per-capita, Gross domestic product per-capita and CO2 emission per-capita is fluctuating in nature. In case of India, Environmental Kuznets Curve (EKC) still exists and Gross domestic product per-capita is affecting renewable energy consumption positively and CO2 emission per-capita negatively.