Trade openness, economic growth, and energy intensity in China

Chen, Suisui; Zhang, Hongyan; Wang, Shuhong

doi:10.1016/j.techfore.2022.121608

Cited by 95 publications

(32 citation statements)

References 31 publications

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“…The paths are renewable energy consumption → gross capital formation → economic growth, renewable energy consumption → labor force → economic growth, renewable energy consumption → trade openness → economic growth, renewable energy consumption → research and development expenditure → economic growth, and renewable energy consumption → foreign direct investment → economic growth. These findings are different from previous literature such as Zafar et al [95], Iqbal et al [94], and Chen et al [85], who only analyzed the long-run or short-run effect of renewable energy consumption on economic growth.…”

Section: Indirect and Direct Economic Effects Of Renewable Energy Con...contrasting

confidence: 99%

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Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Huang

2022

Sustainability

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Renewable energy’s economic effects have been hotly debated, as it is a promising energy source. However, scholars have not achieved an agreement on this hot topic. Therefore, this article re-examines the direct and indirect economic effects of renewable energy consumption in China from 1990 to 2020. Using the Granger causality test to conduct empirical analysis, the result suggests there is a bidirectional causality between renewable energy consumption and economic growth. Then, the mediation model is used for further analysis. The results suggest that economic growth is positively affected by renewable energy consumption. Meanwhile, renewable energy consumption can also indirectly affect economic growth through gross capital formation, the labor force, trade openness, research and development expenditure, and foreign direct investment. Based on the evidence this article provides, policymakers can issue corresponding policies to maintain sustainable economic growth while minimizing environmental pollution.

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Section: Indirect and Direct Economic Effects Of Renewable Energy Con...contrasting

confidence: 99%

“…Meanwhile, trade openness and foreign direct investment also significantly contribute to economic growth. These outcomes are consistent with Chen et al [85], Pilinkiene [86], and Ostic et al [87]. A possible explanation is that, because of China's overcapacity, a substantial quantity of excess capacity is exported overseas.…”

Section: Causality Analysissupporting

confidence: 85%

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Huang

2022

Sustainability

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“…Therefore, consistent with the study of Zhu et al (2021), the findings of trade openness also have an inverse relationship with the one-way causal association. The results are somehow reliable (Shah, Naqvi, and Anwar, 2020;Chen et al, 2022).…”

Section: Discussionmentioning

confidence: 84%

“…Adom (2015) determined asymmetric effects between trade openness and energy intensity in Nigeria. In China, trade openness is negatively related to energy intensity (Chen et al, 2022).…”

Section: Gross Domestic Product Urban Growth and Trade Openness On En...mentioning

confidence: 99%

“…In the existing literature, none of the studies explored all these factors over energy intensity, specifically in the post-COVID perspective. However, some studies have mentioned the substantial effect of the variables in a few countries (Lv et al, 2019;Peng and Zheng, 2021;Chen et al, 2022). Hence, the present study contributes to the literature by examining the influence of the said aspects by employing novel econometric techniques such as the method of moments quantile regressions, which is a more powerful technique than the panel quantile regression as it provides empirical estimates at a specific scale and location of the quantile, and the causality analysis tests for assessing causal linkage between eco-innovation, green financing, and energy efficiency in G7 economies considering the Covid 19 era.…”

Section: Introductionmentioning

confidence: 99%

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Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era

Fareed

Wolanin

et al. 2022

Front. Energy Res.

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Following the environmental concerns such as global warming, climate change, and environmental degradation, scholars and policymakers discovered energy utilization as the key factor in these issues. Therefore, economies are paying more attention to green finance and eco-innovation to reduce energy usage and enhance energy efficiency. The prime objective of this study is to explore whether the mentioned variables exhibit any influence on the energy efficiency target achievement. In this sense, the current study explores the association of green finance and eco-innovation with energy intensity in the group of seven economies from 1990 to 2020. By using panel data approaches, this study employs diagnostic tests that confirm the heterogeneous slopes and the existence of panel cross-section dependence. Also, the cointegration tests validate the existence of a long-run equilibrium relationship between the variables. Based on the asymmetric distribution of the data, this study employs the method of moments quantile regression. The empirical results reveal that green finance and eco-innovation significantly reduce energy intensity across the selected quantiles. Control variables such as urban growth and trade openness also adversely affect energy intensity. However, economic growth is the only significant factor that enhances energy intensity. The results are robust as validated by the panel quantile regression and the Granger panel heterogenous causality test. Based on the findings, this study recommends that green finance be promoted and environmental-related technology innovation be encouraged to achieve the goal of energy efficiency in developed economies. This study also provides additional policies appropriate for environmental recovery.

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Green Innovation and Energy Efficiency: Moderating Effect of Institutional Quality Based on the Threshold Model

Chen,

Pinar,

Román-Collado

2024

Environ Resource Econ

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Recent studies demonstrated that green innovation and environment-related technologies reduce energy intensity and improve energy efficiency, contributing to the reduction of carbon emissions. However, the existing studies employ linear estimation methods to examine the relationship between green innovation and energy intensity and do not consider the indirect implications of institutional quality for the effect of green technology on energy intensity. Institutional quality is found to be an essential driver of innovation, and countries may need to achieve at least a minimum level of institutional quality to promote green innovation and improve their energy intensity. To test this hypothesis, this paper examines the relationship between energy intensity and green innovation using a panel dataset from 72 countries between 1996 and 2017 and a panel threshold model when institutional quality is considered a threshold variable. The findings highlight that green innovation reduces the energy intensity if and only if countries surpass a certain threshold of institutional quality. Therefore, countries need to improve their institutional quality to promote green innovation and benefit from green technologies in improving their energy intensity.

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Trade openness, economic growth, and energy intensity in China

Cited by 95 publications

References 31 publications

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China

Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era

Green Innovation and Energy Efficiency: Moderating Effect of Institutional Quality Based on the Threshold Model

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