A Study on Linkage between Global Warming Indicators and Climate Change Expenditure

Abstract

Purpose: The emissions of greenhouse gases (GHGs) have a critical influence on sustainable development and cause global warming, therefore contributing to climate change. National and international governments prioritize measures to mitigate global warming by funding green projects. The study aims to assess the relationship between global warming indicators (emission level of carbon dioxide, methane and greenhouse gas) and India's climate change expenses incurred for employing renewable energy sources avenues nuclear power plants, efficient waste management, and transforming fuel-based technology with electricity-based to meet the extending electricity need. Methodology: The secondary data is taken from the World Bank to establish the causality between climate change expenditure and global warming indicators. The augmented dickey-fuller (unit root) test is performed to check the stationarity of the data series. Based on the validated data, the quantum of discharge of CO2, CH4 and GHGs is used to gauge the impact on climate change expenditure through Engle and Granger technique on e-views software. Findings: The results indicate a positive relationship between CO2, CH4, GHGs emissions and expenditure incurred to implement the mitigation strategies for climate change. The stationarity of the series is established at the first difference. Then regression model is determined through Engle-Granger Test, which depicts the model as a good fit with a 76% prediction level. Managerial implications: The study provides insight into the successive increase in climate change expenditure which requires the government to frame a more stringent policy to preserve the environment with proper implementation to reduce greenhouse gas emissions.