Faculty Publications

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Author: search.filters.author.Rajesh Acharya, R.H.

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    Economic growth and environmental degradation: How to balance the interests of developed and developing countries
    (FrancoAngeli nardi@uniroma3.it, 2019) Sadath, A.C.; Rajesh Acharya, R.H.
    In this paper we present a pragmatic basis for a multilateral cooperation to deal with climate change problem after accounting for the interests of both developed and developing economies. We develop our argument for such a cooperation based on the principle of affordability of developed countries and accessibility of developing countries. Towards this, we have estimated a panel Autoregressive Distributed Lag (ARDL) model using data pertaining to groups of countries classified based on region and income from 1960 to 2014. Results show that countries with high Gross Domestic Product (GDP) percapita emit more volume of hazardous Greenhouse Gases (GHG) than their developing counterparts and more importantly, the coefficient of elasticity of emission to the growth rate of GDP is substantially lower for highincome countries. Therefore, we argue that developed countries may lead the world in the climate change mitigation efforts through emission reduction and promotion of efficient use of energy resources. © 2020 FrancoAngeli.
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    Insider trading in India - Regulatory enforcement
    (Emerald Publishing, 2017) Manchikatla, A.K.; Rajesh Acharya, R.H.
    Purpose: The purpose of this paper is to study the effectiveness of insider trading enforcement actions in India and international dimensions. Design/methodology/approach: The research is based on the insider trading regulations and amendments made during the period 1992-2015. Findings: The notable observation of the study is the dearth of insider trading conviction and the paucity of prosecution for insider trading offences in India. It is difficult to resist the conclusion that surveillance and enforcement matter more than the drafting of the relevant statutes and regulations in emerging markets. Whereas, developed countries have a better record of prosecution than emerging markets. Research limitations/implications: Future research may explore the factors that hinder effective regulation and recommend new methods to increase the impact of Securities and Exchange Board of India insider trading regulation. Originality/value: The current paper presents guidance for the foreign institutional investors, regulators and market participants on insider trading regulation and prosecution in India. © Emerald Publishing Limited 1359-0790.
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    Assessing the extent and intensity of energy poverty using Multidimensional Energy Poverty Index: Empirical evidence from households in India
    (Elsevier Ltd, 2017) Sadath, A.C.; Rajesh Acharya, R.H.
    In this paper, we have made a comprehensive assessment of the extent and various socio-economic implications of energy poverty in India. Amartya Sens's capability approach to development underpins the analysis of household-level data taken from the India Human Development Survey-II (IHDS-II), 2011-12 using the Multidimensional Energy Poverty Index (MEPI). The overall results show that energy poverty is widespread in India and the existence of energy poverty also coincides with the other forms of deprivations such as income poverty and social backwardness. For example, Dalits (Lower Caste) and Adivasis (Tribal) are found to be extremely energy poor compared to the other social groups in India. The results also reveal that it is the responsibility of women to manage the domestic chores such as collection of firewood and making of dung cake in traditional Indian households. Inefficient use of such biomass fuels is found to cause health hazards. © 2017 Elsevier Ltd
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    Implications of energy subsidy reform in India
    (Elsevier Ltd, 2017) Rajesh Acharya, R.H.; Sadath, A.C.
    This paper analyses welfare impact of energy subsidy reform in India based on the data from 1970? 71 to 2014? 15. To this end, Auto Regressive Distributed Lag (ARDL) model and Error Correction Model (ECM) have been estimated to quantify the short-run and long-run price and the income elasticity of various energy products. The results show that the price elasticity of demand for all fossil fuels is low, but the respective income elasticity is higher. Therefore, an increase in the general price level caused by the subsidy reform will lead to the erosion of real income and will have related welfare implications in India. The results also reveal that energy expenditure will obviously increase and hence energy consumption will decline depending upon the extent of the withdrawal of subsidy. Therefore, policy makers in India, while undertaking further reforms, must ensure that the subsidy reaches to those who truly deserve, so that the socioeconomic casualty of reforms can be minimized along with achieving fiscal goals. © 2016 Elsevier Ltd
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    Revisiting the relationship between oil price and macro economy: Evidence from India
    (Franco Angeli Edizioni ufficiostampa@francoangeli.it Viale Monza 106 Milan 2012720127, 2018) Rajesh Acharya, R.H.; Sadath, A.C.
    In this paper we revisit the research question of how Indian economy reacted to the changes in the historical oil price. Data on aggregate variables such as real GDP, WPI, interest rate and money supply since 1996 to 2017 are used to estimate Auto-Regressive Distributed Lag (ARDL) model and Structural Vector Auto-Regressive model (SVAR). Empirical results clearly show that oil price is negatively related to real GDP and at the same time, its effect on general inflation is not clear probably due to the massive subsidization of energy resources during the period of study and consequent cushioning of the inflationary effect of oil price shock. Results also show that in the short run, macroeconomic aggregates are mostly influenced by real factors than monetary factors. Result implies that policy makers must create adequate safeguards to ensure that ordinary citizens are not hurt from oil shock as India's reliance on oil import is expected to increase in the future and also promote efficient use of energy resources. © 2018 Franco Angeli Edizioni. All rights reserved.
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    Energy poverty and economic development: Household-level evidence from India
    (Elsevier Ltd, 2019) Rajesh Acharya, R.H.; Sadath, A.C.
    In this paper, we investigate the relationship between energy poverty and economic development in India and its trend over a decade. For this purpose, we estimate a Multidimensional Energy Poverty Index (MEPI) and an index of development at the district level using household level data. Empirical results show that energy poverty is quite extensive in India with substantial variations across the states and districts. Over the years, energy poverty shows a declining trend at all-India level, but with the exception of few bigger and less developed states. Further, the study records a negative relationship between economic development and energy poverty, the strength of relationship has increased during the study period. Among the components of economic development, education has a greater impact on reducing energy poverty compared with income. The study observes that energy poverty and socio-economic backwardness in India are highly correlated; Dalits and Adivasis have higher energy poverty and a lower rate in the reduction of energy poverty in comparison with the national average. Energy poverty is lower in urban India in comparison with rural India. © 2018
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    A study on volatility and return spillover of exchange-traded funds and their benchmark indices in India
    (Emerald Group Holdings Ltd., 2020) Chandrasekaran, B.; Rajesh Acharya, R.H.
    Purpose: The purpose of this paper is to empirically examine the volatility and return spillover between exchange-traded funds (ETFs) and their respective benchmark indices in India. The paper uses time series data which consist of equity ETF and respective index returns. Design/methodology/approach: The study uses autoregressive moving average–generalized autoregressive conditional heteroscedasticity and autoregressive moving average–exponential generalized autoregressive conditional heteroscedasticity models. The study uses data from the inception date of each ETF to December 2016. Findings: The findings of the paper confirm that there is unidirectional return spillover from the benchmark index to ETF returns in most of the ETFs. Furthermore, ETF and benchmark index return have volatility persistence and show the presence of asymmetric volatility wherein a negative news has more influence on volatility compared to a positive news. Finally, unlike unidirectional return spillover, there is a bidirectional volatility spillover between ETF and benchmark index return. Practical implications: The study has several practical implications for investors and regulators. A positive daily mean return over a fairly long period of time indicates that the passive equity ETFs can be a viable long-term investment option for ordinary investors. A bidirectional volatility spillover between the ETFs and benchmark index returns calls for the attention of the market regulators to examine the reasons for the same. Originality/value: ETFs have seen fast growth in the Indian market in recent years. The present study considers the longest period data possible. © 2019, Emerald Publishing Limited.
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    Is the effect of Indian energy price shocks asymmetric on the stock market at the firm level? A panel SVAR approach
    (FrancoAngeli, 2021) Aruna, B.; Rajesh Acharya, R.H.
    This paper examines, using monthly data from 1995 to 2016, whether the oil, coal and electricity price shocks have an asymmetric influence on stock returns and inflation. The paper has employed Panel Structural Vector Autoregressive (PSVAR) model with various measures of the oil, coal and electricity price shocks on a dataset containing 1168 firms. Results from Panel-SVAR reveal that all oil, coal and electricity price specifications have an asymmetric impact on stock returns. Further, impulse response function reveals that the various dimensions of oil, coal and electricity price shocks lead to volatility in the response variables. It can also be observed that negative coal and electricity price shock has a radical impact on stock returns. Overall, the study on asymmetric impact of net oil and coal price increase, deserves attention from the investors and policy makers. © 2020 Franco Angeli Edizioni. All rights reserved.
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    The macroeconomic effects of increase and decrease in oil prices: evidences of asymmetric effects from India
    (Emerald Group Holdings Ltd., 2021) Sadath, A.C.; Rajesh Acharya, R.H.
    Purpose: The purpose of this paper is to assess whether oil price shocks emanating from oil price increase and decrease have a different impact on the macroeconomic activity. Design/methodology/approach: This study conducts the empirical analysis using structural vector auto-regressive model on Indian data for the period from 1996 to 2017. This paper uses four key macroeconomic variables, namely, real gross domestic product (GDP), the real rate of interest, real money supply, wholesale price index inflation and various linear and non-linear measures of oil price shock. Findings: Empirical results confirm that oil price shock has a significant impact on various macroeconomic variables used in the study. Specifically, shocks emanating from a decline in oil price have a stronger positive impact on real GDP, whereas, a shock due to the rise in oil price has a weaker negative impact on real GDP. Impulse responses confirm that shocks due to a decline in oil prices are long-lasting compared to similar shocks due to a rise in oil prices. Therefore, this study concludes that the macroeconomic impact of oil price shock is asymmetric in India. Originality/value: This paper adds the following new insights: First, this paper presents a distinct relationship between the growth rate of oil price and GDP during increasing and decreasing phases of oil price to drive home the case for this study. Second, India has adopted crucial administrative initiatives such as deregulation of the market for petroleum products and the promotion of renewable energy during the study period. Finally, previous studies have revealed specific behavioral and economic features of people in India with respect to the demand for petroleum products. In light of these factors, this paper based on Indian experience would be justified. © 2021, Emerald Publishing Limited.
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    Access to modern energy services and human development in India: Has government policies paid off?
    (Econjournals, 2021) Sadath, A.C.; Rajesh Acharya, R.H.
    In this paper we investigate the relationship between access to modern energy services and human development in India over a decade. We estimate an index of human development, multidimensional energy poverty index, and confidence index. Empirical result shows that energy poverty is quite widespread in most of the states in spite of the progress made in reducing the same during the study period. States with higher level of human development are having lower level of energy poverty implying a strong negative correlation between energy poverty and human development. Further, the strength of negative relationship between energy poverty and human development has strengthened during the study period. Among the components of human development, energy poverty has highest impact on GSDP percapita index followed by education index and life expectancy index. The study also finds that confidence index has positive relationship with human development index, whereas negative relationship with energy poverty. © 2021, Econjournals. All rights reserved.