Long-Run impact of energy on development of Indian economy: an empirical estimation

Energy has been played vital and crucial role in the production process and development of the economy. The present study has tried to estimate the long-run impact of energy on development of the economy, economic development of people by using long-run co-integrating model. The time series data has used to estimate the long-run impact using FMOLS method. It has found from the study that petroleum consumption has negative long-run impact on GDP. But these impacts are not statistically significant. Therefore, consumption of petroleum is insufficient for the economy. Matter of fact, petroleum consumption has significant positive impact on per capita income. Coal has positive impact on GDP. Therefore, it plays crucial role in development of the economy. Gas consumption has significant impact on GDP, negative impact on the per capita income. Therefore, gas also plays significant role in development of economy. Electricity consumption has significant positive impact on PCI. Therefore, electricity also plays important role in economic development of people. Therefore, the study has proved significant long-run impact of energy on macro economic development of India and economic development of people