India's green growth puzzle: decoding the interplay between carbon dioxide emissions, energy mix, and GDP.

This study examines the dynamic relationship between environmental degradation, energy composition, and economic growth. Utilizing annual data spanning from 1985 to 2022, our findings reveal a long-term equilibrium between the total energy consumption, CO₂ emissions, and electricity generation from fossil fuels, renewables, and nuclear sources, alongside economic growth in India. Granger causality tests show that fossil fuel and nuclear energy use significantly predict CO₂ emissions and growth, with limited reverse effects. Variance decomposition indicates that renewable energy helps reduce emissions, while fossil fuel-based energy consumption increases them. The policy implications underscore the necessity for enhanced investment in renewable energy, improved energy efficiency, and a diversified energy portfolio for India.