Renewable energy consumption – Economic growth nexus for China

The aim of this paper is to investigate the relationship between renewable energy consumption and economic growth in China for the period 1977–2011. Autoregressive Distributed Lag approach (ARDL) to cointegration and Johansen cointegration techniques are employed by including intermittent variables...

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Bibliographic Details
Published in:Renewable & sustainable energy reviews Vol. 40; pp. 111 - 117
Main Authors: Lin, Boqiang, Moubarak, Mohamed
Format: Journal Article
Language:English
Published: Kidlington Elsevier Ltd 01.12.2014
Elsevier
Subjects:
Applied sciences
Carbon
Carbon dioxide
China
Economic data
Economic development
Economic growth
Economics
Energy
Energy consumption
Energy economics
Exact sciences and technology
General aspects
General, economic and professional studies
Labor
Methodology. Modelling
Natural energy
Renewable energy
Renewable energy consumption
Asia
China
China, People's Rep
Economic growth
Renewable energy consumption
China
Energy consumption
Econometric analysis
Renewable energy
Cointegration
Time series
Causality
ISSN:1364-0321, 1879-0690
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Summary:The aim of this paper is to investigate the relationship between renewable energy consumption and economic growth in China for the period 1977–2011. Autoregressive Distributed Lag approach (ARDL) to cointegration and Johansen cointegration techniques are employed by including intermittent variables namely carbon dioxide emissions and labor. We also employed Granger causality test in order to determine the direction of the causality among the variables. The results show that there is a bi-directional long term causality between renewable energy consumption and economic growth. This finding implies that growing economy in China is propitious for the development of renewable energy sector which in turn helps to boost economic growth. We also find that labor influences renewable energy consumption in the short term. However, there is no evidence of long or short run causality between carbon emissions and renewable energy consumption. This implies that actual level of renewable energy in China is still insignificant and not considerably exploited in order to contribute to the mitigation of carbon dioxide emissions.
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ISSN:1364-0321
1879-0690
DOI:10.1016/j.rser.2014.07.128