Transport CO 2 emissions, drivers, and mitigation: an empirical investigation in India

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Transport CO2 emissions, drivers, and mitigation: an empirical investigation in India Zahoor Ahmed 1 & Sajid Ali 2 & Shah Saud 1 & Syed Jawad Hussain Shahzad 3,4 Received: 17 June 2020 / Accepted: 27 July 2020 # Springer Nature B.V. 2020

Abstract India has one of the world’s largest transport networks, with the dominant share being road transportation. India’s transport sector consumes oil products for more than 95% of its energy needs and is a significant contributor to environmental deterioration in urban areas. Therefore, we examine the driving factors of transport CO2 emissions in India, incorporating road transport energy, economic growth, industrialization, urbanization, oil prices, and road infrastructure, over the period 1980 to 2015. The findings indicate that economic growth and road sector energy use cause an upsurge in transport emissions. Likewise, industrialization and road infrastructure stimulate transport emissions. Urbanization mitigates transport emissions, while oil prices have no influence on transport emissions. One-way causality is shown from economic growth, urbanization, and road sector energy to transport emissions. Finally, suitable policy implications are proposed to reduce transport CO2 emissions for a sustainable environment. Keywords Transport CO2 emissions . India . Urbanization . Economic growth . Oil prices

Introduction The year 2016 saw a leap in transport emissions by approximately 2%, while CO2 emissions from the industrial sector reduced. The transport sector contributes almost 25% of global CO 2 emissions, which is 71% higher than in 1990. Approximately 74% of transport emissions are caused by road Electronic supplementary material The online version of this article (https://doi.org/10.1007/s11869-020-00891-x) contains supplementary material, which is available to authorized users. * Syed Jawad Hussain Shahzad [email protected] Zahoor Ahmed [email protected] Sajid Ali [email protected] Shah Saud [email protected] 1

School of Management and Economics, Beijing Institute of Technology, Beijing, China

2

Faculty of Finance and Banking, Ton Duc Thang University, Ho Chi Minh City, Vietnam

3

Montpellier Business School, Montpellier, France

4

South Ural State University, Chelyabinsk, Russian Federation

transportation (IEA 2018). The share of transport energy increased from 23% of total energy in 1971 to 29% in 2017 with the dominant 93% share being oil (IEA 2019). Transportation plays a crucial role in the development of a country, as it links all sectors of the economy. However, transport activities mainly rely on fossil fuels, which increase CO2 emissions resulting in global warming and related catastrophic effects (Chung and Kim 2008; Ahmed et al. 2019; Abdull et al. 2020). The transport sector contributes to economic growth and stimulates urbanization, which eventually increases private vehicle ownership. Private vehicles and trucks constitute approximately one half of global travel growth, indicating a significant influence of transportation on energy a