Investigating the role of capital formation to achieve carbon neutrality in India.

India's sustainable development goals consist of higher economic growth through large investments on the one hand and ambitious carbon emission reduction plans through increased renewables on the other. It needs to be seen if the two policies related to capital formation and energy transitioning to renewables complement each other or if they have been divergent in the case of India. This paper studies the dynamic association between carbon dioxide emissions, economic growth, renewable energy (RE) consumption, and gross capital formation and tests for the existence of Environmental Kuznets Curve (EKC) hypothesis for India over the time period 1970-2018.