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Does human capital matter for reduction in energy consumption in India?

Vaseem Akram (Department of Liberal Arts, Indian Institute of Technology Hyderabad, Hyderabad, India)
Bhushan Praveen Jangam (Indian Institute of Technology Hyderabad, Hyderabad, India)
Badri Narayan Rath (Indian Institute of Technology Hyderabad, Hyderabad, India)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 30 October 2018

Issue publication date: 15 May 2019

Abstract

Purpose

This paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption.

Design/methodology/approach

To attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares.

Findings

The results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques.

Practical implications

Because G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation.

Originality/value

To the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

Keywords

Acknowledgements

The authors gratefully acknowledge the valuable suggestions received from editor and anonymous referees in the earlier draft of this paper. The usual disclaimer applies.

Citation

Akram, V., Jangam, B.P. and Rath, B.N. (2019), "Does human capital matter for reduction in energy consumption in India?", International Journal of Energy Sector Management, Vol. 13 No. 2, pp. 359-376. https://doi.org/10.1108/IJESM-07-2018-0009

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited