Evaluating the Impact of Government Expenditure, Renewable Energy Consumption, and CO2 Emissions on Indian Economic Sustainability: Insights from the ARDL Model

Abstract

Recent research into environmental and economic issues has increasingly focused on how renewable energy consumption and effective government spending contribute to sustainable economic growth, particularly within the context of global climate change. Empirical studies have produced varied results regarding the relationship between these variables, often framed within the Keynesian economic growth model. This framework emphasizes the importance of government expenditure in stimulating economic growth. However, the inconsistent findings across studies indicate that the interactions between renewable energy consumption, government spending, and economic sustainability may differ based on regional and contextual factors. This variability underscores the complexity of balancing environmental concerns with economic development goals amid climate change challenges.