Exploring the Causality Relationship between Manufactures Exports and CO2 Emissions: An Evidence from India Empirical Estimates

This paper empirically examines the relation between manufactures exports and CO2 Emissions in a historical perspective for the case of India. Manufacturing exports constitute the lions share of merchandise exports of countries. It shows higher investment in the manufacturing sector were associated with faster, increasing CO2 Emissions in context of India. The govt. of India has provided subsidies to their resource-intensive to manufacturing sectors that subsidies with potentially harmful environmental impacts are not declining in the recent period, despite the ongoing negotiations through the WTO framework and the UN forums. The study is conducted within the framework of causality using annual data for the period 1971-2011. There is unidirectional causality from manufactures exports and CO2 Emissions at the aggregate level. Explore that is feedback causality between manufactures exports and CO2 emission at the aggregate level in the long-run as well short-run. Unidirectional causality is indicated between manufacturing export and CO2 emissions. The Implication of the study will be that India should take a consistent policy adopted for sustainable, inclusive, faster and a high growth rate and at the same time to control emissions of CO2. The objective of this paper is to explore the JEL Classification Q56, C22, H23, F18