International Journal of Social Science & Economic Research
Submit Paper

Title:
Environmental Protection or Economic Prosperity? Testing the Inevitability of Trade-offs in India

Authors:
Abhiveer Gulati

Journal: International Journal of Social Science and Economic Research (IJSSER)
ISSN: 2455-8834
Volume: 11
Issue: 8
Publication Date: August 2026
DOI: 10.46609/IJSSER.2026.v11i08.011

|| ||

Abhiveer Gulati
Vasant Valley School, Vasant Kunj, New Delhi, Delhi

MLA 8
Gulati, Abhiveer. "Environmental Protection or Economic Prosperity? Testing the Inevitability of Trade-offs in India." Int. j. of Social Science and Economic Research, vol. 11, no. 8, Aug. 2026, pp. 3777-3791, doi.org/10.46609/IJSSER.2026.v11i08.011. Accessed Aug. 2026.
APA 6
Gulati, A. (2026, August). Environmental Protection or Economic Prosperity? Testing the Inevitability of Trade-offs in India. Int. j. of Social Science and Economic Research, 11(8), 3777-3791. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i08.011
Chicago
Gulati, Abhiveer. "Environmental Protection or Economic Prosperity? Testing the Inevitability of Trade-offs in India." Int. j. of Social Science and Economic Research 11, no. 8 (August 2026), 3777-3791. Accessed August, 2026. https://doi.org/10.46609/IJSSER.2026.v11i08.011.

References

[1] . Batra, G. (2023). Renewable energy economics: achieving harmony between environmental protection and economic goals. Social science chronicle, 2(2), 1-32.
[2] . Bureau of Energy Efficiency. (2012). Perform, Achieve and Trade (PAT) scheme. Ministry of Power, Government of India. https://beeindia.gov.in
[3] . Central Pollution Control Board. (2017). Graded Response Action Plan for Delhi and NCR. Ministry of Environment, Forest and Climate Change, Government of India.
[4] . Centre for Science and Environment. (2008). Rich lands, poor people: Is sustainable mining possible? CSE.
[5] . Coase, R. H. (2013). The problem of social cost. The journal of Law and Economics, 56(4), 837-877.
[6] . Cusworth, D. H., Mickley, L. J., Sulprizio, M. P., Liu, T., Marlier, M. E., DeFries, R. S., ... & Gupta, P. (2018). Quantifying the influence of agricultural fires in northwest India on urban air pollution in Delhi, Ind Copeland, B. R., & Taylor, M. S. (2004). Trade, growth, and the environment. Journal of Economic literature, 42(1), 7-71.ia. Environmental Research Letters, 13(4), 044018.
[7] . Dasgupta, S., Laplante, B., Wang, H., & Wheeler, D. (2002). Confronting the environmental Kuznets curve. Journal of economic perspectives, 16(1), 147-168.
[8] . Divan, S., & Rosencranz, A. (2022). Environmental law and policy in India: cases and materials. Oxford University Press.
[9] . EHRLICH, P. R., & HOLDREN, J. P. (1971). IMPACT OF POPULATION GROWTH. Obstetrical &Amp; Gynecological Survey, 26(11), 769–771. https://doi.org/10.1097/00006254-197111000-00014
[10] . Ghosh, S. (2010). Examining carbon emissions economic growth nexus for India: a multivariate cointegration approach. Energy policy, 38(6), 3008-3014.
[11] . Gillingham, K., Rapson, D., & Wagner, G. (2016). The rebound effect and energy efficiency policy. Review of environmental economics and policy.
[12] . Greenstone, M., & Hanna, R. (2014). Environmental regulations, air and water pollution, and infant mortality in India. American economic review, 104(10), 3038-3072.
[13] . Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The quarterly journal of economics, 110(2), 353-377.
[14] . Guttikunda, S. K., & Jawahar, P. (2014). Atmospheric emissions and pollution from the coal-fired thermal power plants in India. Atmospheric Environment, 92, 449-460.
[15] . Feiock, R. C., & Stream, C. (2001). Environmental Protection Versus Economic Development: A False Trade?Off? Public Administration Review, 61(3), 313–321. Portico. https://doi.org/10.1111/0033-3352.00032
[16] . Feng, S., Mohd Shafiei, M. W., Ng, T. F., Ren, J., & Jiang, Y. (2024). The intersection of economic growth and environmental sustainability in China: Pathways to achieving SDG. Energy Strategy Reviews, 55, 101530. https://doi.org/10.1016/j.esr.2024.101530
[17] . Haberl, H., Wiedenhofer, D., Virág, D., Kalt, G., Plank, B., Brockway, P., ... & Creutzig, F. (2020). A systematic review of the evidence on decoupling of GDP, resource use and GHG emissions, part II: synthesizing the insights. Environmental research letters, 15(6), 065003.
[18] . Hickel, J., & Kallis, G. (2020). Is green growth possible?. New political economy, 25(4), 469-486.
[19] . International Energy Agency. (2021). India energy outlook 2021. IEA. https://www.iea.org/reports/india-energy-outlook-2021
[20] . IEA (2023), World Energy Outlook 2023, IEA, Paris https://www.iea.org/reports/world-energy-outlook-2023, Licence: CC BY 4.0 (report); CC BY NC SA 4.0 (Annex A). https://www.iea.org/reports/world-energy-outlook-2023
[21] . Le Quéré, C., Korsbakken, J. I., Wilson, C., Tosun, J., Andrew, R., Andres, R. J., ... & Van Vuuren, D. P. (2019). Drivers of declining CO2 emissions in 18 developed economies. Nature Climate Change, 9(3), 213-217.
[22] . Liu, H., Khan, I., Zakari, A., & Alharthi, M. (2022). Roles of trilemma in the world energy sector and transition towards sustainable energy: A study of economic growth and the environment. Energy Policy, 170, 113238. https://doi.org/10.1016/j.enpol.2022.113238
[23] . Managi, S., & Jena, P. R. (2008). Environmental productivity and Kuznets curve in India. Ecological Economics, 65(2), 432-440.
[24] . Menon, M., & Kohli, K. (2015). Environmental Regulation in India: Moving'Forward'in the Old Direction. Economic and Political Weekly, 20-23.
[25] . Ministry of New and Renewable Energy. (2010). Jawaharlal Nehru National Solar Mission: Towards building solar India. Government of India.
[26] . Munasinghe, M. (1999). Is environmental degradation an inevitable consequence of economic growth: tunneling through the environmental Kuznets curve. Ecological economics, 29(1), 89-109.
[27] . Olson Jr, M. (1971). The Logic of Collective Action: Public Goods and the Theory of Groups, with a new preface and appendix (Vol. 124). harvard university press.
[28] . Porter, M. E., & Linde, C. V. D. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of economic perspectives, 9(4), 97-118.
[29] . Sinha, A., & Shahbaz, M. (2018). Estimation of environmental Kuznets curve for CO2 emission: role of renewable energy generation in India. Renewable energy, 119, 703-711.
[30] . Stern, D. I. (2004). The rise and fall of the environmental Kuznets curve. World Development, 32(8), 1419–1439. https://doi.org/10.1016/j.worlddev.2004.03.004
[31] . ISFR. (2021). India state of forest report 2021.
[32] . The World Bank. (2026). World Development Indicators. https://databank.worldbank.org/source/world-development-indicators.
[33] . Western Ghats Ecology Expert Panel. (2011). Report of the Western Ghats Ecology Expert Panel. Ministry of Environment and Forests, Government of India.
[34] . World Health Organization. (2021). WHO global air quality guidelines: Particulate matter (PM2.5 and PM10), ozone, nitrogen dioxide, sulfur dioxide and carbon monoxide. World Health Organization.

ABSTRACT:
India is one of the fastest-growing economies. However, it is also one of the countries that exhibit the highest level of environmental concerns. While India’s national income has multiplied over the last 23 years (2000-2023), carbon dioxide emissions, deforestation, and air pollution remain alarming concerns. Thus, this paper raises an old economic query in a new context: Can a country foster economic growth and protect its environment at the same time? In this paper, this question is explored in the Indian context based on economic theories such as the Environmental Kuznets Curve, the Porter Hypothesis, and through the concept of decoupling, as well as a dataset compiled from the World Development Indicators (WDI) and the Central Electricity Authority (CEA), Government of India spanning 2000 to 2023. The analysis reveals a pattern of relative decoupling in India: its GDP’s carbon intensity has declined by about two-thirds and the proportion of clean power in installed generation capacity has increased from about one-quarter to more than two-fifths of the total, since 2000. However, absolute emissions, forest pressure, and air pollution remain significant issues, as gains are unevenly distributed across sectors and regions. The paper concludes that the trade-off is not a given outcome, but is shaped, and can be reshaped by pricing, institutions, and political choice

IJSSER is Member of