Abstract :
Environmental pollution is an important issue in the process of economic growth. The deterioration of environment begins to have direct impact on the quality of human life or even a threat to the survival of human being. This paper investigates the relationship between per capita gross domestic product (GDP) and per capita CO2 emissions as hypothesized by Environmental Kuznets Curve (EKC) holds in the long-run or not. Co-integration regression methodology is employed for examining the long run relationship between the variables. For this purpose time series data on GDP and CO2 emission along with foreign direct investment (FDI) and population density (PD) are been taken from year 1991 to 2015. The results revealed that there is no inverted ‘U’ shaped relationship between per capita GDP and per capita CO2 emissions i.e., EKC hypothesis has failed at Indian condition to explain the inverted relationship between GDP and CO2 emission . It indicates that increase in per capita GDP strongly leads to economic growth and welfare of the people while it doesn’t cause CO2 emissions in India.
Keyword :
EKC, Environmental, Degradation, Co-integration