Driving energy transition in India: The role of economic growth, environmental governance, FDI and green innovation

Hemant Kumar Sah; Sunil Kumar; Gyanendra Singh Sisodia; Hajer Kratou

doi:10.1177/01445987251396263

Driving energy transition in India: The role of economic growth, environmental governance, FDI and green innovation

Hemant Kumar Sah
, Sunil Kumar
, Gyanendra Singh Sisodia
, Hajer Kratou

Alliance University

Research output: Contribution to journal › Article › peer-review

Abstract

This study empirically examines the effect of economic growth, environmental governance (EVG), foreign direct investment (FDI) and green innovation on energy transition in India during 1990 to 2022. Auto Regressive Distributed Lag (ARDL) model is applied to find out the cointegration among the variables. Finding from the bound test confirms the cointegration among our variables and the short run influence of economic growth, EVG, FDI and green innovation on energy transition is observed. Additionally, the long run impact of economic growth and FDI on energy transition is noted. Granger causality result confirms unidirectional causality from EVG to economic growth, FDI and energy transition. Similarly, economic growth causes FDI and energy transition in unidirectional ways. Moreover, unidirectional causality from energy transition to FDI is observed through the causality test. Based on our findings, the study recommends policy towards energy transition having a long-term impact on environmental pollution mitigation and economic growth to support Sustainable Development Goals in the targeted period.

Original language	English
Pages (from-to)	1265-1292
Number of pages	28
Journal	Energy Exploration and Exploitation
Volume	44
Issue number	3
DOIs	https://doi.org/10.1177/01445987251396263
State	Published - May 2026

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 17 Partnerships for the Goals

Keywords

ARDL
Energy transition
GDP
SDGs
environmental governance
innovation

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10.1177/01445987251396263

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title = "Driving energy transition in India: The role of economic growth, environmental governance, FDI and green innovation",

abstract = "This study empirically examines the effect of economic growth, environmental governance (EVG), foreign direct investment (FDI) and green innovation on energy transition in India during 1990 to 2022. Auto Regressive Distributed Lag (ARDL) model is applied to find out the cointegration among the variables. Finding from the bound test confirms the cointegration among our variables and the short run influence of economic growth, EVG, FDI and green innovation on energy transition is observed. Additionally, the long run impact of economic growth and FDI on energy transition is noted. Granger causality result confirms unidirectional causality from EVG to economic growth, FDI and energy transition. Similarly, economic growth causes FDI and energy transition in unidirectional ways. Moreover, unidirectional causality from energy transition to FDI is observed through the causality test. Based on our findings, the study recommends policy towards energy transition having a long-term impact on environmental pollution mitigation and economic growth to support Sustainable Development Goals in the targeted period.",

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year = "2026",

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AU - Sah, Hemant Kumar

AU - Kumar, Sunil

AU - Sisodia, Gyanendra Singh

AU - Kratou, Hajer

N1 - Publisher Copyright: © The Author(s) 2025. This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage).

PY - 2026/5

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N2 - This study empirically examines the effect of economic growth, environmental governance (EVG), foreign direct investment (FDI) and green innovation on energy transition in India during 1990 to 2022. Auto Regressive Distributed Lag (ARDL) model is applied to find out the cointegration among the variables. Finding from the bound test confirms the cointegration among our variables and the short run influence of economic growth, EVG, FDI and green innovation on energy transition is observed. Additionally, the long run impact of economic growth and FDI on energy transition is noted. Granger causality result confirms unidirectional causality from EVG to economic growth, FDI and energy transition. Similarly, economic growth causes FDI and energy transition in unidirectional ways. Moreover, unidirectional causality from energy transition to FDI is observed through the causality test. Based on our findings, the study recommends policy towards energy transition having a long-term impact on environmental pollution mitigation and economic growth to support Sustainable Development Goals in the targeted period.

AB - This study empirically examines the effect of economic growth, environmental governance (EVG), foreign direct investment (FDI) and green innovation on energy transition in India during 1990 to 2022. Auto Regressive Distributed Lag (ARDL) model is applied to find out the cointegration among the variables. Finding from the bound test confirms the cointegration among our variables and the short run influence of economic growth, EVG, FDI and green innovation on energy transition is observed. Additionally, the long run impact of economic growth and FDI on energy transition is noted. Granger causality result confirms unidirectional causality from EVG to economic growth, FDI and energy transition. Similarly, economic growth causes FDI and energy transition in unidirectional ways. Moreover, unidirectional causality from energy transition to FDI is observed through the causality test. Based on our findings, the study recommends policy towards energy transition having a long-term impact on environmental pollution mitigation and economic growth to support Sustainable Development Goals in the targeted period.

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Driving energy transition in India: The role of economic growth, environmental governance, FDI and green innovation

Abstract

UN SDGs

Keywords

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