Investigating asymmetric impacts of total factor energy efficiency on carbon emissions in India.

As many complex energy relations are not linear and have diminishing returns, assuming a symmetric (linear) effect of energy efficiency (ENEF) on carbon emissions (CAE) has limited our understanding of the emission-ENEF nexus. This research, therefore, initially estimates total factor energy efficiency by applying a stochastic frontier technique using sample panels for India encompassing the period from 2000 to 2014. Further, a nonlinear panel autoregressive distributed lag modelling framework is utilised in order to investigate the asymmetric (nonlinear) long- and short-run impacts of ENEF on CAE.