Navigating the path to carbon efficiency: an integrated analysis of institutional quality, fossil fuel efficiency, structural changes and renewable energy in India's sustainability journey
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 15 April 2024
Abstract
Purpose
The purpose of this study is to assess the influence of institutional quality (IQ), fossil fuel efficiency, structural change and renewable energy (RE) consumption on carbon efficiency.
Design/methodology/approach
This research uses an econometric approach, more specifically the Autoregressive Distributed Lag model, to examine the relationship between structural change, RE consumption, IQ, fossil fuel efficiency and carbon efficiency in India from 1996 to 2019.
Findings
This study finds the positive contributions of variables like fossil fuel efficiency, technological advancement, structural transformation, IQ and increased RE consumption in fostering environmental development through enhanced carbon efficiency. Conversely, this study emphasises the negative contribution of trade openness on carbon efficiency. These findings provide concise insights into the dynamics of factors impacting carbon efficiency in India.
Research limitations/implications
This study's exclusive focus on India limits the generalizability of findings. Future studies should include a broader range of variables impacting various nations' carbon efficiency. Furthermore, it is worth noting that this study examines renewable and fossil fuel efficiency aggregated. Future research endeavours could yield more specific policy insights by conducting analyses at a disaggregated level, considering individual energy sources such as wind, solar, coal and oil. Understanding how the efficiency of each energy source influences carbon efficiency could lead to more targeted and practical policy recommendations.
Originality/value
To the best of the authors’ knowledge, this study addresses a significant gap in the existing literature by being the first empirical investigation into the effects of IQ, fossil fuel efficiency, structural change and RE consumption on carbon efficiency. Unlike prior research, the authors consider a comprehensive IQ index, providing a more holistic perspective. The use of a comprehensive composite index for IQ, coupled with the focus on fossil fuel efficiency and structural change, distinguishes this study from previous research, contributing valuable insights into the intricate dynamics shaping India's path towards enhanced carbon efficiency, an area relatively underexplored in the existing literature.
Keywords
Acknowledgements
Anam Ul Haq Ganie is a recipient of Indian Council of Social Science Research (ICSSR) Doctoral Fellowship. His article is largely an outcome of his doctoral work sponsored by ICSSR. However, the responsibility for the facts stated, opinions expressed and the conclusions drawn is entirely that of the author.
Citation
Ganie, A.U.H. and Ahmad, M. (2024), "Navigating the path to carbon efficiency: an integrated analysis of institutional quality, fossil fuel efficiency, structural changes and renewable energy in India's sustainability journey", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-12-2023-0021
Publisher
:Emerald Publishing Limited
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