Empirical insights into India's energy demand: unveiling elasticity dynamics for strategic policy initiatives.

Policymakers and stakeholders can use insights from price elasticity and income elasticities of energy demand to devise targeted interventions that promote energy efficiency, reduce reliance on fossil fuels, and drive the transition to more sustainable and resilient energy systems. This study seeks to examine how changes in income elasticity and price elasticity affect energy consumption over time using the ARDL model and a time-varying parameter technique, state-space Kalman filter. The study's findings reveal that energy prices have a negative and significant impact on energy consumption, whereas GDP per capita and population growth have a positive and significant impact on energy consumption in both the short and long run.