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Abstract: The paper investigates the causality relationships among energy consumption, carbon dioxide (CO2) emissions and income in India using a dynamic modeling approach. The paper also utilises an innovation accounting method to investigate profiles of the macroeconomic variables persisting from an unanticipated shock in innovation. Our results provide evidence of the existence of bi-directional Granger causality between energy consumption and CO2 emissions in the long-run but neither CO2 emissions nor energy consumption causes movements in real income. There is no causality relationship between energy consumption and income in any direction in the long-run implying that India could follow energy conservation and efficiency improvement policies without impeding economic growth. This will allow India to reduce CO2 emissions without affecting its economic growth and contribute significantly towards combating global warming as well. [Copyright &y& Elsevier]

As the world's fastest growing major economy and home to nearly one-fifth of the worlds population, India a vibrant democracy is in the midst of a profound transformation and rapid urbanization. Urbanization improves the quality of life of people while promoting economic growth; however it also increases energy consumption and is capable of generating an energy crisis. Urbanization has a significant impact on Carbon Dioxide (CO 2 ) emissions as well. This paper empirically investigates the temporal, dynamic and causal relationships between urbanization, energy consumption and emissions. The study also aims to understand the urbanization process in India, in terms of the level and tempo of urbanization and the urban growth morphology, by utilizing the census data of 1901–2011. The rise in energy consumption and resulting emissions in the context of rapid urbanization is also reviewed. To address these problems the study recommends a series of measures and a set of strategies that include energy intensity and emission intensity reduction measures through continuous monitoring, information feedback systems, introduction of industrial energy quota management, incentives for energy efficient facilities, shutting down of inefficient facilities, and setting up of smart residential buildings. Reduction of distribution and transmission losses by investing in smart grids is also highly recommended. [ABSTRACT FROM AUTHOR]