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

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.