Energy Consumption, Economic Development and Environmental Improvement in China

Abstract

As the biggest developing country in the world, China is facing more and more pressure to reduce emissions. However, can growth in energy consumption, economic output and environmental protection be achieved simultaneously in China? To solve the problem, this paper presents an analysis of the long-run and causal relationship between energy consumption, economic growth and environmental pollution in China from 1983–2010. The methodology uses is the Johansen cointegration test and Granger causality test based on a multivariate vector error correction model. Empirical results show that there are correlations between energy consumption, economic growth and environmental pollution in the long-term. The results of causality test indicate that economic growth is the cause for both energy consumption and environmental pollution, while energy consumption is the cause of environmental pollution and vice versa. The policy implication would be that energy conservation and pollution reduction policies may be undertaken without impeding economic growth.

Causal dynamics between renewable energy consumption and economic growth in South Korea: Empirical analysis and policy implications

“…The cointegrating equation extracted from the VECM for the four-variable system, where lny tÀ1 is the normalized variable, is as follows: lny tÀ1 ¼ À67:04 þ 2:91 lnl tÀ1 þ 1:78 lnk tÀ1 À 0:09 lnr tÀ1 7:04 ð Þ 16:84 ð Þ ðÀ16:39Þ (5) where the values in parentheses denote the z-statistics. The renewable energy consumption index has a negative long-run effect on economic growth.…”

“…Renewable energy is recognized as an alternative energy source that can overcome the shortcoming of fossil fuels. [5][6][7] The expansion of renewable energy in terms of the ratio of renewable energy to total energy consumption raises a new question about the causal relationship between renewable energy and economic growth. Knowledge on this relationship can provide policymakers with new and improved policy ideas.…”

Energy Consumption and Economic Development in Hong Kong, China

“…All in all, this study not only contributes to the existing literature that explores the relationships between economic growth and energy consumption [19][20][21][22][23], but also highlights that changing a city's economic structure (shifting its industrial activities to services) does not slow down the growth of energy consumption and its GHG emissions. The paper is one of the first papers to explore this topic in one of the most densely populated cities-Hong Kong-based on long-term time series data.…”

Mapping the Evolution of Energy‐growth Nexus: Synergies and Trade‐offs

“…He et al . () identifies a long‐run correlation between energy, growth and pollutant where growth cause energy and pollutant value for China.…”