Impact of Climate Change On Inflation: An Empirical Evidence from India Based On Vector Error Correction Model

Authors

  • Egurla Kishan

DOI:

https://doi.org/10.33516/rb.v49i2%20-%203.85-98p

Keywords:

Climate Change, Inflation, VECM, CO<sub>2</sub> emissions.

Abstract

Climate change is a major issue not only in terms of environmental dimension but it is worsening the social and economic developments at all the levels in the world. The world economic growth is hardly hitting by the multifaced climate events, climate shocks and leads to climatic economic crisis. The present study is an attempt to examines the impacts of climate change indicators i.e., temperature, precipitation, carbon dioxide emissions, carbon intensity on the India’s consumer prices from 1990-2020 by applying vector error correction model. The study outcome has proved that there is a statistically significant positive longrun association between the temperature, precipitation, CO2 emissions and the consumer price index in India and it also confirms that insignificant short-run association between the climate change variables and the Inflation during the study period. These results will provide an important contribution to the macro-economic climate change and climate monetary policies.

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Published

2024-03-21

How to Cite

Kishan, E. (2024). Impact of Climate Change On Inflation: An Empirical Evidence from India Based On Vector Error Correction Model. Research Bulletin, 49(2 &amp; 3), 85–98. https://doi.org/10.33516/rb.v49i2 - 3.85-98p

Issue

Volume 49, Issue 2 & 3, July-October 2023

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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