Purpose

The purpose of this paper is to examine whether remittance inflow stimulate electricity consumption in India with other macroeconomic variables such as FDI, trade openness and urbanization in energy demand function from 1975–2017.

Design/methodology/approach

We have applied structural break and co-integration tests for stationarity and long-run relationship between the variables. The Toda–Yamamatoo causality is employed for investigation of causal relationship between the variables, and robustness of causality linkages is also tested by applying innovative accounting approach (IAA).

Findings

Our empirical analysis shows there is presence of long-run relationship among the variables. We find that remittance inflows stimulate electricity consumption in India. Industrialization is positively linked with electricity demand. However, trade openness declines the electricity consumption, but urbanization increases it. Furthermore, remittances inflows cause electricity consumption.

Originality/value

On the basis of findings, we conclude that due to positive impacts of remittances inflows, trade openness and urbanization, policymakers in the Indian economy need to be careful while designing sustainable environment policy. Otherwise, any sustainable environment policy in the name of protecting green environment will hamper the growth of remittance inflows, urbanization and FDI. If this exists, it may be argued that sustainable growth in India will not be possible in the face of sustainable environment policy.

中文翻译：

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汇款流入会刺激印度的电力消费吗？经验见解

目的

本文的目的是检验 1975 年至 2017 年期间，汇款流入是否与其他宏观经济变量（如外国直接投资、贸易开放和城市化）在能源需求函数中的关系刺激了印度的电力消费。

设计/方法/方法

我们对变量之间的平稳性和长期关系应用了结构断裂和协整检验。Toda-Yamamatoo因果关系用于研究变量之间的因果关系，并且还通过应用创新会计方法（IAA）测试了因果关系的稳健性。

发现

我们的实证分析表明，变量之间存在长期关系。我们发现汇款流入刺激了印度的电力消费。工业化与电力需求呈正相关。然而，贸易开放降低了电力消耗，而城市化增加了电力消耗。此外，汇款流入会导致电力消耗。

原创性/价值

根据调查结果，我们得出结论，由于汇款流入、贸易开放和城市化的积极影响，印度经济的决策者在设计可持续环境政策时需要谨慎。否则，任何以保护绿色环境为名的可持续环境政策都会阻碍汇款流入、城市化和外国直接投资的增长。如果这种情况存在，人们可能会争辩说，面对可持续的环境政策，印度的可持续增长将是不可能的。