CO2 emissions, natural gas and renewables, economic growth: Assessing the evidence from China

Kangyin Dong; Renjin Sun; Xiucheng Dong

doi:10.1016/j.scitotenv.2018.05.322

CO₂ emissions, natural gas and renewables, economic growth: Assessing the evidence from China

Sci Total Environ. 2018 Nov 1:640-641:293-302. doi: 10.1016/j.scitotenv.2018.05.322. Epub 2018 May 31.

Authors

Kangyin Dong¹, Renjin Sun², Xiucheng Dong³

Affiliations

¹ School of Business Administration, China University of Petroleum-Beijing, Beijing 102249, China; Department of Agricultural, Food and Resource Economics, Rutgers, The State University of New Jersey, NJ 08901, USA. Electronic address: kangyin.dong@rutgers.edu.
² School of Business Administration, China University of Petroleum-Beijing, Beijing 102249, China; State Key Laboratory of Heavy Oil Processing, China University of Petroleum-Beijing, Beijing 102249, China. Electronic address: sunrenjin@cup.edu.cn.
³ School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China. Electronic address: xiuchengdong@163.com.

PMID: 29860004
DOI: 10.1016/j.scitotenv.2018.05.322

Abstract

This study aims to test the environmental Kuznets curve (EKC) for carbon dioxide (CO₂) emissions in China by developing a new framework based on the suggestion of Narayan and Narayan (2010). The dynamic effect of natural gas and renewable energy consumption on CO₂ emissions is also analyzed. Considering the structural break observed in the sample, a series of econometric techniques allowing for structural breaks is utilized for the period 1965-2016. The empirical results confirm the existence of the EKC for CO₂ emissions in China. Furthermore, in both the long-run and the short-run, the beneficial effects of natural gas and renewables on CO₂ emission reduction are observable. In addition, the mitigation effect of natural gas on CO₂ emissions will be weakened over time, while renewables will become progressively more important. Finally, policy suggestions are highlighted not only for mitigating CO₂ emissions, but also for promoting growth in the natural gas and renewable energy industries.

Keywords: ARDL; CO(2) emissions; China; Environmental Kuznets curve; Natural gas and renewable energy consumption.