Countering carbon emissions: FDI, industrialization, mineral rents, and population rise impacting sustainable economic growth

This study aimed to establish the influence of economic growth (measured by GDP), industrialization (IND), mineral rents (MR) and population growth (PG) on CO2 emissions (CO2) in the context of one of the fastest growing economies in the world, i.e., India. The study employs the ARDL bounds test to analyze the information obtained from the World Bank records for the years 1990–2023. The outcomes of the empirical analysis revealed that GDP and PG clearly affect CO2 in the long run. Similarly, CO2 is negatively affected by its lagged value, whereas FDI is found to positively contribute to CO2 emissions in the short run. Our results also establish that IND negatively affects CO2, establishing the EKC hypothesis in the context of India. Finally, the short-term results indicate a negative impact of MR on CO2. The study produced relevant findings that make noteworthy input to the current knowledge in the area of emerging economies. Policy- and governance-related implications emerging from the analysis are provided by the study.