LAUSR

Abstract Causal relationship among economic growth, urbanization, energy consumption, renewable energy share, trade openness and carbon emissions in the context of a large developing economy of India over the period 1990–2015 is examined in this study. The results support the existence of co-integration among the major variables. Ridge regression is done to model the impact of these variables on carbon emission. Estimated coefficients of economic growth and energy consumption are positive and significant. The major contribution to carbon emission in India comes from total energy consumption (34.12%) and economic growth (12.49%), while renewable energy consumption shows negative impact (− 29.76%). Results support feedback hypothesis among trade and carbon emission. This is revealed that the increase in GDP and trade openness facilitates adoption of renewable and energy-efficient technologies to reduce emission. In view of continued heavy dependence on indigenous fossil fuel coal as the major energy provider, concern should be adoption of ultra-low-emission technology in coal-fired power plants for immediate relief. Development of renewable energy sources coupled with switching to electric mass transport systems and large-scale adoption of energy-efficient green technologies appear as the other most practical and sustainable policy suggestions for a vast economy like India. Graphic abstract