Role of Education and Economic Benefits of Energy Conservation in India

Abstract

The oil price shock of the 1970s and its disruptive impact on the economic activities all over the world prompts researchers to study the nexus between energy and economic growth. The role of energy in the modern economic scenario has occupied a central space to give fillip to economic growth. However, no conclusive result could be derived about the kind of relationship that exists between the two. The present study is an attempt to understand this relationship in the context of India. The paper has used the data from 1971 to 2020 and has concluded that this relationship between energy use and real output is stable. The study also reveals that in the short run, there is unidirectional relationship between the two more consumption of energy stimulates economic activities in India. In the long run, we find that bidirectional relationship exists between energy and economic prosperity of India. Strengthening of energy sector is of paramount importance in India to achieve phenomenal economic growth.