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Does energy efficiency mediate a green economic recovery? Evidence from China

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  • Liu, Zhihong
  • ul Islam, Misbah
  • Alarifi, Ghadah Abdulrahman
  • Cong, Phan The
  • Khudoykulov, Khurshid
  • Quynh, Le Nhu
  • Hossain, Md. Shamim

Abstract

A green economic recovery post-pandemic presents a unique opportunity to rebuild a more sustainable and resilient world while promoting economic growth in China. One key aspect of a green economic recovery is energy efficiency, which can significantly reduce energy consumption, lower costs, and create new jobs. This study focuses on the relationship between carbon emissions and energy efficiency in China. Using province-level CO2 emissions data from 1990 to 2022, the study finds that energy efficiency has both positive and negative asymmetric effects on CO2 emissions in the long run, while renewable energy has a positive effect and non-renewable energy has a negative effect. The study also confirms the Environmental Kuznets Curve hypothesis, indicating that as per capita income increases, investments in cleaner technologies should be encouraged to mitigate the adverse effects of CO2 emissions. The energy and environmental policy implications are also suggested as prioritizing policies that improve energy efficiency, promote renewable energy sources, and reduce non-renewable energy consumption to achieve sustainable development goals.

Suggested Citation

  • Liu, Zhihong & ul Islam, Misbah & Alarifi, Ghadah Abdulrahman & Cong, Phan The & Khudoykulov, Khurshid & Quynh, Le Nhu & Hossain, Md. Shamim, 2023. "Does energy efficiency mediate a green economic recovery? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 802-815.
    • Handle: RePEc:eee:ecanpo:v:78:y:2023:i:c:p:802-815
    DOI: 10.1016/j.eap.2023.04.011
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