Top

Economic Change and Restructuring

Published in:

10-09-2022

A step towards green economic policy framework: role of renewable energy and climate risk for green economic recovery

Authors: Lifang Guo, Hewu Kuang, Zehua Ni

Published in: Economic Change and Restructuring | Issue 5/2023

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

According to the World Bank, energy efficiency is a critical facilitator of most Sustainable Development Goals. Its contribution to CO2 emission reduction is astounding. Environmentalists have recently emphasized the essential need to determine energy efficiency causes. This research broadens the debate's horizons by proposing additional possible energy efficiency factors using data from the Chinese economy. From 1990 to 2020, we examined the influence of investment in renewable energy resources, financial inclusion, industrial production, and trade openness on China's energy efficiency and climate risk. Additionally, this study is added to the literature by examining the causal relationships between variables while considering the temporal dimension. The findings indicate that industrial production, financial inclusion, public R&D on renewable energy, and trade openness contribute significantly to China's energy efficiency and climate risk. All other factors, except industrial production, are positively associated with energy efficiency. The path of causality is established from energy efficiency and climate risk to financial inclusion, industrial production, renewable energy, public research and development budgets, and trade openness. According to the findings, changes in energy performance have frequency-changing impacts on all variables. Policymakers believe that the financial system must be strengthened since this will significantly influence renewable energy.

previous article Spillover effect among independent carbon markets: evidence from China’s carbon markets

next article Low-carbon transition toward green recovery: policy framework after COVID-19

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Akram R, Umar M, Xiaoli G, Chen F (2022) Dynamic linkages between energy efficiency, renewable energy along with economic growth and carbon emission. A case of MINT countries an asymmetric analysis. Energy Rep 8:2119–2130CrossRef

Alvarado R, Ortiz C, Ponce P, Toledo E (2022) Renewable energy consumption, human capital index, and economic complexity in 16 Latin American countries: evidence using threshold regressions. In: Energy-Growth Nexus in an Era of Globalization, pp. 287–310. Elsevier, Amsterdam

Attia S, Kosiński P, Wójcik R, Węglarz A, Koc D, Laurent O (2022) Energy efficiency in the polish residential building stock: a literature review. J Build Eng 45:103461CrossRef

Berner A, Lange S, Silbersdorff A (2022) Firm-level energy rebound effects and relative efficiency in the German manufacturing sector. Energy Econ 109. https://doi.org/10.1016/j.eneco.2022.105903

Cao X, Kannaiah D, Ye L, Khan J, Shabbir MS, Bilal K, Tabash MI (2022) Does sustainable environmental agenda matter in the era of globalization? The relationship among financial development, energy consumption, and sustainable environmental-economic growth. Environ Sci Pollut Res, 1–11.

Chien F, Hsu C-C, Ozturk I, Sharif A, Sadiq M (2022a) The role of renewable energy and urbanization towards greenhouse gas emission in top Asian countries: evidence from advance panel estimations. Renew Energy 186:207–216CrossRef

Chien F, Hsu C-C, Zhang Y, Tran TD, Li L (2022b) Assessing the impact of green fiscal policies and energy poverty on energy efficiency. Environ Sci Pollut Res 29(3):4363–4374CrossRef

Chopra R, Magazzino C, Shah MI, Sharma GD, Rao A, Shahzad U (2022) The role of renewable energy and natural resources for sustainable agriculture in ASEAN countries: Do carbon emissions and deforestation affect agriculture productivity? Resour Policy 76:102578CrossRef

Ci W, Okereke EJ, Nnamdi IS (2022) Financial development and economic growth: a causal analysis. GPH-Int J Bus Manag (IJBM) 5(01):1–18

Dai L, Mu X, Lee CC, Liu W (2021) The impact of outward foreign direct investment on green innovation: the threshold effect of environmental regulation. Environ Sci Pollut Res 28(26):34868–34884. https://doi.org/10.1007/S11356-021-12930-WCrossRef

Dalla Longa F, Fragkos P, Nogueira LP, van der Zwaan B (2022) System-level effects of increased energy efficiency in global low-carbon scenarios: amodel comparison. Comput Ind Eng 167:108029CrossRef

Fragkos P (2022) Analysing the systemic implications of energy efficiency and circular economy strategies in the decarbonisation context. AIMS Energy 10(2):191–218CrossRef

Ghinoi S, Steiner B (2020) The political debate on climate change in Italy: a discourse network analysis. Politics Governance. https://doi.org/10.17645/pag.v8i2.2577

Gyimah J, Yao X, Tachega MA, Hayford IS, Opoku-Mensah E (2022) Renewable energy consumption and economic growth: new evidence from Ghana. Energy 248:123559CrossRef

Hassan ST, Batool B, Zhu B, Khan I (2022a).Environmental complexity of globalization, education, and income inequalities: New insights of energy poverty. J Clean Production, 130735.

Hassan T, Song H, Khan Y, Kirikkaleli D (2022b) Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies. Energy, 123063.

Huang Y, Haseeb M, Usman M, Ozturk I (2022) Dynamic association between ICT, renewable energy, economic complexity and ecological footprint: Is there any difference between E-7 (developing) and G-7 (developed) countries? Technol Soc 68:101853CrossRef

Inguscio A (2022) The EU Perspective from Setbacks to Success: Tackling Climate Change from Copenhagen to the Green Deal and the Next-Generation EU. In Interdisciplinary Approaches to Climate Change for Sustainable Growth (pp. 127–139). Springer, Cham.

Islam M, Alam M, Ahmed F, Al-Amin AQ (2022) Economic growth and environmental pollution nexus in Bangladesh: revisiting the environmental Kuznets curve hypothesis. Int J Environ Stud, 1–25.

John AS, Deinde IG (2021) Energy poverty, climate change and economic growth. Energy 4(3):98–115

Kaakeh M, Shirazi SS, Gokmenoglu KK (2021) The extended GREEN-A framework: a gender comparison in consumer support for sustainable businesses practices. J Environ Assessment Policy Manage 23(01n02):2250011. https://doi.org/10.1142/S1464333222500119

Kang J, Yu C, Xue R, Yang D, Shan Y (2022) Can regional integration narrow city-level energy efficiency gap in China? Energy Policy 163:112820CrossRef

Koomson I, Danquah M (2021) Financial inclusion and energy poverty: empirical evidence from Ghana. Energy Economics 94:105085CrossRef

Kumar A, Pal D, Kar SK, Mishra SK, Bansal R (2022) An overview of wind energy development and policy initiatives in India. Clean Technol Environ Policy, 1–22.

Kuo Y, Maneengam A, Phan The C, Binh An N, Nassani AA, Haffar M, Qadus A (2022) Fresh evidence on environmental quality measures using natural resources, renewable energy, non-renewable energy and economic growth for 10 Asian nations from CS-ARDL technique. Fuel 320:123914. https://doi.org/10.1016/J.FUEL.2022.123914CrossRef

Lei W, Xie Y, Hafeez M, Ullah S (2022) Assessing the dynamic linkage between energy efficiency, renewable energy consumption, and CO2 emissions in China. Environ Sci Pollut Res 29(13):19540–19552CrossRef

Li J, Ho MS (2022) Indirect cost of renewable energy: insights from dispatching. Energy Economics 105:105778CrossRef

Li W, Chien F, Hsu CC, Zhang YQ, Nawaz MA, Iqbal S, Mohsin M (2021a) Nexus between energy poverty and energy efficiency: estimating the long-run dynamics. Resour Policy. https://doi.org/10.1016/j.resourpol.2021.102063CrossRef

Li H-S, Geng Y-C, Shinwari R, Yangjie W, Rjoub H (2021b) Does renewable energy electricity and economic complexity index help to achieve carbon neutrality target of top exporting countries? J Environ Manage 299:113386CrossRef

Liu H, Yao P, Latif S, Aslam S, Iqbal N (2022b) Impact of Green financing, FinTech, and financial inclusion on energy efficiency. Environ Sci Pollut Res 29(13):18955–18966CrossRef

Liu D, Xie Y, Hafeez M, Usman A (2022a) The trade-off between economic performance and environmental quality: does financial inclusion matter for emerging Asian economies? Environ Sci Pollut Res, 1–10.

Mahi M, Ismail I, Phoong SW, Isa CR (2021) Mapping trends and knowledge structure of energy efficiency research: what we know and where we are going. Environ Sci Pollut Res 28(27):35327–35345CrossRef

Mahmood H (2022) The effects of natural gas and oil consumption on CO2 emissions in GCC countries: asymmetry analysis. Environ Sci Pollut Res, 1–17.

Melanidis MS, Hagerman S (2022) Competing narratives of nature-based solutions: leveraging the power of nature or dangerous distraction? Environ Sci Policy. https://doi.org/10.1016/j.envsci.2022.02.028CrossRef

Mesagan EP (2021) Efficiency of financial integration, foreign direct investment and output growth: policy options for pollution abatement in Africa. Economic Issues 26(1):1–19

Mesagan EP, Akinsola F, Akinsola M, Emmanuel PM (2022) Pollution control in Africa: the interplay between financial integration and industrialization. Environ Sci Pollution Res, 1–11.

Mikhaylov A, Moiseev N, Aleshin K, Burkhardt T (2020) Global climate change and greenhouse effect. Entrepreneurship Sustain Issues 7(4):2897CrossRef

Miśkiewicz R (2021) The impact of innovation and information technology on greenhouse gas emissions: a case of the Visegrád countries. J Risk Financial Manage 14(2):59CrossRef

Mohsin M, Ullah H, Iqbal N, Iqbal W, Taghizadeh-Hesary F (2021b) How external debt led to economic growth in South Asia: a policy perspective analysis from quantile regression. Econ Anal Policy 72:423–437. https://doi.org/10.1016/J.EAP.2021.09.012CrossRef

Mohsin M, Taghizadeh-Hesary F, Panthamit N, Anwar S, Abbas Q, Vo XV (2021c) Developing low carbon finance index: evidence from developed and developing economies. Financ Res Lett 43:101520CrossRef

Mohsin M, Phoumin H, Youn IJ, Taghizadeh-Hesary F (2021) Enhancing energy and environmental efficiency in the power sectors: a case study of Singapore and China. J Environ Assessment Policy Manage 23(03n04):2250018. https://doi.org/10.1142/S1464333222500181

Moshood TD, Nawanir G, Mahmud F, Sorooshian S, Adeleke AQ (2021) Green and low carbon matters: A systematic review of the past, today, and future on sustainability supply chain management practices among manufacturing industry. Clean Eng Technol 4:100144CrossRef

Mughal N, Arif A, Jain V, Chupradit S, Shabbir MS, Ramos-Meza CS, Zhanbayev R (2022) The role of technological innovation in environmental pollution, energy consumption and sustainable economic growth: evidence from South Asian economies. Energ Strat Rev 39:100745CrossRef

Narayan PK, Popp S (2010) A new unit root test with two structural breaks in level and slope at unknown time. J Appl Stat 37(9):1425–1438CrossRef

Nasir MA, Canh NP, Le TNL (2021) Environmental degradation & role of financialisation, economic development, industrialisation and trade liberalisation. J Environ Manage 277:111471CrossRef

Nuryartono N, Pasaribu SH (2022) Economic complexity and sustainable growth in developing countries. Econ Dev Anal J 11(1):23–33CrossRef

Olayungbo DO, Faiyetole AA, Olayungbo AA (2022) Economic growth, energy consumption, and carbon emissions: the case of Nigeria. In: Handbook of research on energy and environmental finance 4.0 (pp. 259–276). IGI Global, Hershey.

Ouyang X, Chen J, Du K (2021) Energy efficiency performance of the industrial sector: from the perspective of technological gap in different regions in China. Energy 214:118865CrossRef

Paramati SR, Shahzad U, Doğan B (2022) The role of environmental technology for energy demand and energy efficiency: Evidence from OECD countries. Renew Sustain Energy Rev 153:111735CrossRef

Parihar M, Bhagwat K, Dasari N (2022) Economic analysis of energy efficient transportation in India with special reference to the passenger movement. In: Smart systems: innovations in computing (pp. 31–40). Springer, Cham

Peter AP, Koyande AK, Chew KW, Ho S-H, Chen W-H, Chang J-S, Krishnamoorthy R, Banat F, Show PL (2022) Continuous cultivation of microalgae in photobioreactors as a source of renewable energy: Current status and future challenges. Renew Sustain Energy Rev 154:111852CrossRef

Pofoura AK, Sun H, Mensah IA, Liu F (2021) How does eco-innovation affect CO2 emissions? Evidence from Sub-Saharan Africa. J Environ Assessment Policy Manage 23(03n04):2250017. https://doi.org/10.1142/S146433322250017X

Razak AA, Asutay M (2022) Financial inclusion and economic well-being: evidence from Islamic Pawnbroking (Ar-Rahn) in Malaysia. Res Int Bus Financ 59:101557CrossRef

Sahebi IG, Mosayebi A, Masoomi B, Marandi F (2022) Modeling the enablers for blockchain technology adoption in renewable energy supply chain. Technol Soc, 101871.

Sanaye S, Alizadeh P, Yazdani M (2022) Thermo-economic analysis of syngas production from wet digested sewage sludge by gasification process. Renew Energy 190:524–539. https://doi.org/10.1016/j.renene.2022.03.086CrossRef

Talebizadeh SM, Hosseingholizadeh R, Bellibaş MŞ (2021) Analyzing the relationship between principals’ learning-centered leadership and teacher professional learning: The mediation role of trust and knowledge sharing behavior. Stud Educ Eval 68:100970. https://doi.org/10.1016/J.STUEDUC.2020.100970CrossRef

Tang CF, Tan BW (2015) The impact of energy consumption, income and foreign direct investment on carbon dioxide emissions in Vietnam. Energy 79:447–454CrossRef

Tawiah VK, Zakari A, Khan I (2021) The environmental footprint of China-Africa engagement: an analysis of the effect of China-Africa partnership on carbon emissions. Sci Total Environ 756:143603CrossRef

Tian J, Yu L, Xue R, Zhuang S, Shan Y (2022) Global low-carbon energy transition in the post-COVID-19 era. Appl Energy 307:118205CrossRef

Tong T, Ortiz J, Xu C, Li F (2020) Economic growth, energy consumption, and carbon dioxide emissions in the E7 countries: a bootstrap ARDL bound test. Energy Sustain Soc 10(1):1–17CrossRef

Truby J, Brown RD, Dahdal A, Ibrahim I (2022) Blockchain, climate damage, and death: Policy interventions to reduce the carbon emissions, mortality, and net-zero implications of non-fungible tokens and Bitcoin. Energy Res Soc Sci 88:102499CrossRef

Ullah S, Ali K, Shah SA, Ehsan M (2022) Environmental concerns of financial inclusion and economic policy uncertainty in the era of globalization: evidence from low & high globalized OECD economies. Environ Sci Pollut Res, 1–15.

Usman M, Jahanger A, Makhdum MSA, Balsalobre-Lorente D, Bashir A (2022) How do financial development, energy consumption, natural resources, and globalization affect Arctic countries’ economic growth and environmental quality? An Advanced Panel Data Simulation. Energy 241:122515CrossRef

Walter S, Brüggemann M (2020) Opportunity makes opinion leaders: analyzing the role of first-hand information in opinion leadership in social media networks. Inf Commun Soc. https://doi.org/10.1080/1369118X.2018.1500622CrossRef

Wang Y, Li J (2019) Spatial spillover effect of non-fossil fuel power generation on carbon dioxide emissions across China’s provinces. Renew Energy 136:317–330CrossRef

Wang C, Miao Z, Chen X, Cheng Y (2021) Factors affecting changes of greenhouse gas emissions in Belt and Road countries. Renew Sustain Energy Rev 147:111220CrossRef

Wang Y, Deng X, Zhang H, Liu Y, Yue T, Liu G (2022) Energy endowment, environmental regulation, and energy efficiency: evidence from China. Technol Forecast Soc Chang 177:121528CrossRef

Wei F, Zhang X, Chu J, Yang F, Yuan Z (2021) Energy and environmental efficiency of China’s transportation sectors considering CO2 emission uncertainty. Transp Res Part D Transp Environ 97:102955CrossRef

Weimin Z, Sibt-e-Ali M, Tariq M, Dagar V, Khan MK (2022) Globalization toward environmental sustainability and electricity consumption to environmental degradation: does EKC inverted U-shaped hypothesis exist between squared economic growth and CO2 emissions in top globalized economies. Environ Sci Pollut Res, 1–11.

Xin L, Sun H, Xia X, Wang H, Xiao H, Yan X (2022) How does renewable energy technology innovation affect manufacturing carbon intensity in China? Environ Sci Pollut Res, 1–18.

Yasmeen R, Tao R, Jie W, Padda IUH, Shah WUH (2022) The repercussions of business cycles on renewable & non-renewable energy consumption structure: evidence from OECD countries. Renew Energy 190:572–583. https://doi.org/10.1016/J.RENENE.2022.03.138CrossRef

Yin R, Wang Z, Chai J, Gao Y, Xu F (2022) The evolution and response of space utilization efficiency and carbon emissions: a comparative analysis of spaces and regions. Land 11(3):438CrossRef

Yoshino N, Rasoulinezhad E, Taghizadeh-Hesary F (2021) Economic Impacts of Carbon Tax in a General Equilibrium Framework: empirical study of Japan. J Environ Assessment Policy Manage 23(01n02):2250014. https://doi.org/10.1142/S1464333222500144

Zakari A, Khan I, Tan D, Alvarado R, Dagar V (2022) Energy efficiency and sustainable development goals (SDGs). Energy 239:122365CrossRef

Zhao L, Taghizadeh-Hesary F (2022) Role of R&D investments and air quality in green governance efficiency. Econ Res-Ekonomska Istraživanja, 1–12.

Zhao J, Shahbaz M, Dong K (2022a) How does energy poverty eradication promote green growth in China? The role of technological innovation. Technol Forecast Soc Chang 175:121384CrossRef

Zhao X, Mahendru M, Ma X, Rao A, Shang Y (2022b) Impacts of environmental regulations on green economic growth in China: new guidelines regarding renewable energy and energy efficiency. Renew Energy 187:728–742CrossRef

Zhao X, Ramzan M, Sengupta T, Sharma GD, Shahzad U, Cui L (2022c) Impacts of bilateral trade on energy affordability and accessibility across Europe: does economic globalization reduce energy poverty? Energy Build, 112023.

Title: A step towards green economic policy framework: role of renewable energy and climate risk for green economic recovery
Authors: Lifang Guo
Hewu Kuang
Zehua Ni
Publication date: 10-09-2022
Publisher: Springer US
Published in: Economic Change and Restructuring / Issue 5/2023
Print ISSN: 1573-9414
Electronic ISSN: 1574-0277
DOI: https://doi.org/10.1007/s10644-022-09437-w

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 5/2023

The role of direct financing on regional green development: inhibition or promotion?

Can the digital economy promote fiscal effort?: Empirical evidence from Chinese cities

Why is the size of discouraged labour force increasing in India?

Low-carbon transition toward green recovery: policy framework after COVID-19

Demand for water innovation: evidence on wastewater technology adoption in thirteen African countries

Do oil prices predict the exchange rate in Algeria? Time, frequency, and time‐varying Granger causality analysis

Premium Partner