IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v85y2023ipbs0301420723006323.html
   My bibliography  Save this article

Do natural resources utilization and economic development reduce greenhouse gas emissions through consuming renewable and Clean Technology? A case study of China towards sustainable development goals

Author

Listed:
  • Dong, Yangzi
  • Wong, Wing-Keung
  • Muda, Iskandar
  • Cong, Phan The
  • Duong Hoang, Anh
  • Ghardallou, Wafa
  • Ha, Ngo Ngan

Abstract

China's economy has been slowing down over the past decade after decades of rapid expansion due to demographic challenges and a precipitous drop in productivity growth. Thus, rising economic imbalances constitute a significant drag on China's economy's potential for expansion. Thus, understanding the forces and reducing the imbalance between development and ecology is imperative. For this purpose, the present study is conducted to ascertain the role of Natural Resources (NTR), Economic development (ECD), Renewable Energy (REN), and Clean Technology (TEC) on Greenhouse gas emissions (GHG) through a cutting-edge timeseries estimation technique of a Quantile Autoregressive Distribution Lag (QARDL). The reported results revealed the positive relationships of NTR and ECD with GHG, whereas REN and TEC are found to reduce the level of GHG. Based on the findings and the declining trend in the growth of the Chinese economy, it is recommended to take sustainable initiatives to balance the imbalance between ecology and development sustainably.

Suggested Citation

  • Dong, Yangzi & Wong, Wing-Keung & Muda, Iskandar & Cong, Phan The & Duong Hoang, Anh & Ghardallou, Wafa & Ha, Ngo Ngan, 2023. "Do natural resources utilization and economic development reduce greenhouse gas emissions through consuming renewable and Clean Technology? A case study of China towards sustainable development goals," Resources Policy, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006323
    DOI: 10.1016/j.resourpol.2023.103921
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723006323
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103921?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cho, Jin Seo & Kim, Tae-hwan & Shin, Yongcheol, 2015. "Quantile cointegration in the autoregressive distributed-lag modeling framework," Journal of Econometrics, Elsevier, vol. 188(1), pages 281-300.
    2. Omokanmi, Olatunde Julius & Ibrahim, Ridwan Lanre & Ajide, Kazeem Bello & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Exploring the dynamic impacts of natural resources and environmental pollution on longevity in resource-dependent African countries: Does income level matter?," Resources Policy, Elsevier, vol. 79(C).
    3. Yan, Lei & Mirza, Nawazish & Umar, Muhammad, 2022. "The cryptocurrency uncertainties and investment transitions: Evidence from high and low carbon energy funds in China," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Zhenkai Yang & Mei-Chih Wang & Tsangyao Chang & Wing-Keung Wong & Fangjhy Li, 2022. "Which Factors Determine CO 2 Emissions in China? Trade Openness, Financial Development, Coal Consumption, Economic Growth or Urbanization: Quantile Granger Causality Test," Energies, MDPI, vol. 15(7), pages 1-18, March.
    5. Halicioglu, Ferda, 2009. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," Energy Policy, Elsevier, vol. 37(3), pages 1156-1164, March.
    6. Madaleno, Mara & Dogan, Eyup & Taskin, Dilvin, 2022. "A step forward on sustainability: The nexus of environmental responsibility, green technology, clean energy and green finance," Energy Economics, Elsevier, vol. 109(C).
    7. Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
    8. Chen, Fu & Wang, Liyun & Gu, Qiaojing & Wang, Mingyue & Ding, Xuanwen, 2022. "Nexus between natural resources, financial development, green innovation and environmental sustainability in China: Fresh insight from novel quantile ARDL," Resources Policy, Elsevier, vol. 79(C).
    9. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    10. Zhou, Guangyou & Zhu, Jieyu & Luo, Sumei, 2022. "The impact of fintech innovation on green growth in China: Mediating effect of green finance," Ecological Economics, Elsevier, vol. 193(C).
    11. Chen, Xiaoguang & Yang, Lu, 2019. "Temperature and industrial output: Firm-level evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 257-274.
    12. Lanre Ibrahim, Ridwan & Bello Ajide, Kazeem & Usman, Muhammad & Kousar, Rakhshanda, 2022. "Heterogeneous effects of renewable energy and structural change on environmental pollution in Africa: Do natural resources and environmental technologies reduce pressure on the environment?," Renewable Energy, Elsevier, vol. 200(C), pages 244-256.
    13. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 689-730, September.
    14. Danish, & Ulucak, Recep & Baloch, Muhammad Awais, 2023. "An empirical approach to the nexus between natural resources and environmental pollution: Do economic policy and environmental-related technologies make any difference?," Resources Policy, Elsevier, vol. 81(C).
    15. William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
    16. Asif Razzaq & Arshian Sharif & Paiman Ahmad & Kittisak Jermsittiparsert, 2021. "Asymmetric role of tourism development and technology innovation on carbon dioxide emission reduction in the Chinese economy: Fresh insights from QARDL approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 176-193, January.
    17. Nguyen, Kim Hanh & Kakinaka, Makoto, 2019. "Renewable energy consumption, carbon emissions, and development stages: Some evidence from panel cointegration analysis," Renewable Energy, Elsevier, vol. 132(C), pages 1049-1057.
    18. Boqiang Lin & Yufang Chen, 2018. "Carbon Price in China: A CO2 Abatement Cost of Wind Power Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(7), pages 1653-1671, May.
    19. Tao, Ran & Su, Chi-Wei & Naqvi, Bushra & Rizvi, Syed Kumail Abbas, 2022. "Can Fintech development pave the way for a transition towards low-carbon economy: A global perspective," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    20. Bai, Hanyu & Irfan, Muhammad & Hao, Yu, 2022. "How does industrial transfer affect environmental quality? Evidence from China," Journal of Asian Economics, Elsevier, vol. 82(C).
    21. Metawa, Noura & Dogan, Eyup & Taskin, Dilvin, 2022. "Analyzing the nexus of green economy, clean and financial technology," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 385-396.
    22. Bhatia, Shashi Kant & Bhatia, Ravi Kant & Jeon, Jong-Min & Kumar, Gopalakrishnan & Yang, Yung-Hun, 2019. "Carbon dioxide capture and bioenergy production using biological system – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 110(C), pages 143-158.
    23. Yann Ferrat & Frédéric Daty & Radu Burlacu, 2021. "Short- and long-term effects of responsible investment growth on equity returns," Post-Print hal-03981373, HAL.
    24. Naqvi, Bushra & Rizvi, Syed Kumail Abbas & Mirza, Nawazish & Umar, Muhammad, 2023. "Financial market development: A potentiating policy choice for the green transition in G7 economies," International Review of Financial Analysis, Elsevier, vol. 87(C).
    25. Fleming, Patrick & Lichtenberg, Erik & Newburn, David A., 2018. "Evaluating impacts of agricultural cost sharing on water quality: Additionality, crowding In, and slippage," Journal of Environmental Economics and Management, Elsevier, vol. 92(C), pages 1-19.
    26. Hong Chen & Wenzhe Hu, 2020. "Determining Whether Trade Can Affect Regional Environmental Sustainability from the Perspective of Environmental Pollution," Sustainability, MDPI, vol. 12(5), pages 1-15, February.
    27. Talknice Saungweme & Nicholas M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(3), pages 1-25, September.
    28. Raheel Gohar & Salim Bagadeem & Bisharat Hussain Chang & Muyu Zong, 2022. "Do The Income And Price Changes Affect Consumption In The Emerging 7 Countries? Empirical Evidence Using Quantile Ardl Model," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-24, December.
    29. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Investigating the Causal Relationships among Carbon Emissions, Economic Growth, and Life Expectancy in Turkey: Evidence from Time and Frequency Domain Causality Techniques," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    30. Waheed Ali & Raheel Gohar & Bisharat Hussain Chang & Wing-Keung Wong, 2022. "Revisiting the impacts of globalization, renewable energy consumption, and economic growth on environmental quality in South Asia," Advances in Decision Sciences, Asia University, Taiwan, vol. 26(3), pages 75-98, September.
    31. Jinpeng Fu & Guirong Xiao & Lingling Guo & Chunyou Wu, 2018. "Measuring the Dynamic Efficiency of Regional Industrial Green Transformation in China," Sustainability, MDPI, vol. 10(3), pages 1-19, February.
    32. T. Saungweme & N.M. Odhiambo, 2021. "Inflation and Economic Growth in Kenya: An Empirical Examination," Working Papers AESRI-2021-13, African Economic and Social Research Institute (AESRI), revised Oct 2021.
    33. Ozili, Peterson K, 2020. "Effect of climate change on financial institutions and the financial system," MPRA Paper 103317, University Library of Munich, Germany.
    34. Aviral Kumar Tiwari & Micheal Kofi Boachie & Rangan Gupta, 2021. "Network Analysis of Economic and Financial Uncertainties in Advanced Economies: Evidence from Graph-Theory," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(1), pages 188-215, March.
    35. Muhammad Ramzan, 2021. "Symmetric Impact Of Exchange Rate Volatility On Foreign Direct Investment In Pakistan: Do The Global Financial Crises And Political Regimes Matter?," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-21, December.
    36. Yann Ferrat & Frédéric Daty & Radu Burlacu, 2021. "Short- and long-term effects of responsible investment growth on equity returns," Journal of Risk Finance, Emerald Group Publishing Limited, vol. 23(1), pages 1-13, December.
    37. Nadia Arfaoui & Imran Yousaf, 2022. "Impact Of Covid-19 On Volatility Spillovers Across International Markets: Evidence From Var Asymmetric Bekk Garch Model," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-25, March.
    38. Jabir Esmaeil & Husam Rjoub & Wing-Keung Wong, 2020. "Do Oil Price Shocks and Other Factors Create Bigger Impacts on Islamic Banks than Conventional Banks?," Energies, MDPI, vol. 13(12), pages 1-16, June.
    39. Azer Dilanchiev & Tengiz Taktakishvili, 2021. "Macroeconomic Determinants Of Household Consumptions In Georgia," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-16, December.
    40. Mousavi, Babak & Lopez, Neil Stephen A. & Biona, Jose Bienvenido Manuel & Chiu, Anthony S.F. & Blesl, Markus, 2017. "Driving forces of Iran's CO2 emissions from energy consumption: An LMDI decomposition approach," Applied Energy, Elsevier, vol. 206(C), pages 804-814.
    41. Jun Gao & Niall O’Sullivan & Meadhbh Sherman, 2021. "Chinese securities investment funds: the role of luck in performance," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 20(5), pages 271-297, October.
    42. Luis Enrique Garcia & Aude Illig & Ian Schindler, 2020. "Understanding Oil Cycle Dynamics to Design the Future Economy," Biophysical Economics and Resource Quality, Springer, vol. 5(4), pages 1-17, December.
    43. Chien, FengSheng & Chau, Ka Yin & Sadiq, Muhammad, 2023. "Impact of climate mitigation technology and natural resource management on climate change in China," Resources Policy, Elsevier, vol. 81(C).
    44. Tomiwa Sunday Adebayo & Seyi Saint Akadiri & Husam Rjoub, 2022. "On The Relationship Between Economic Policy Uncertainty, Geopolitical Risk And Stock Market Returns In South Korea: A Quantile Causality Analysis," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-19, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei, Xuecheng & Hu, Weihua, 2023. "Revisiting resources curse hypothesis in China: Exploring the asymmetric effect of green investment and green innovation," Resources Policy, Elsevier, vol. 85(PB).
    2. Wang, Xiang & Yin, Jian & Yang, Yao & Muda, Iskandar & Abduvaxitovna, Shamansurova Zilola & AlWadi, Belal Mahmoud & Castillo-Picon, Jorge & Abdul-Samad, Zulkiflee, 2023. "Relationship between the resource curse, Forest management and sustainable development and the importance of R&D Projects," Resources Policy, Elsevier, vol. 85(PA).
    3. Zhang, Mingming & Wong, Wing-Keung & Kim Oanh, Thai Thi & Muda, Iskandar & Islam, Saiful & Hishan, Sanil S. & Abduvaxitovna, Shamansurova Zilola, 2023. "Regulating environmental pollution through natural resources and technology innovation: Revisiting the environment Kuznet curve in China through quantile-based ARDL estimations," Resources Policy, Elsevier, vol. 85(PA).
    4. Feng, Jie & Gao, Junhong, 2023. "Natural resource curse hypothesis and governance: Understanding the role of rule of law and political risk in the context of China," Resources Policy, Elsevier, vol. 85(PB).
    5. Wang, Feipeng & Wong, Wing-Keung & Wang, Zheng & Albasher, Gadah & Alsultan, Nouf & Fatemah, Ambreen, 2023. "Emerging pathways to sustainable economic development: An interdisciplinary exploration of resource efficiency, technological innovation, and ecosystem resilience in resource-rich regions," Resources Policy, Elsevier, vol. 85(PA).
    6. Ze, Fu & Wong, Wing-Keung & Alhasan, Tariq kamal & Al Shraah, Ata & Ali, Anis & Muda, Iskandar, 2023. "Economic development, natural resource utilization, GHG emissions and sustainable development: A case study of China," Resources Policy, Elsevier, vol. 83(C).
    7. Gong, Qinyi & Ying, Limeng & Dai, Jiapeng, 2023. "Green finance and energy natural resources nexus with economic performance: A novel evidence from China," Resources Policy, Elsevier, vol. 84(C).
    8. Yang, Bin & Wu, Qiong & Sharif, Arshian & Uddin, Gazi Salah, 2023. "Non-linear impact of natural resources, green financing, and energy transition on sustainable environment: A way out for common prosperity in NORDIC countries," Resources Policy, Elsevier, vol. 83(C).
    9. Fang, Shuya & Fang, Wei, 2023. "How fiscal decentralization and trade diversification influence sustainable development: Moderating role of resources dependency," Resources Policy, Elsevier, vol. 84(C).
    10. Du, Yuqiu & Wang, Wendi, 2023. "The role of green financing, agriculture development, geopolitical risk, and natural resource on environmental pollution in China," Resources Policy, Elsevier, vol. 82(C).
    11. Huang, Tianwei & Yang, Lei & Liu, Yufei & Liu, Haibing, 2023. "Dutch disease revisited: China's provincial data perspective with the role of green finance and technology peak," Resources Policy, Elsevier, vol. 83(C).
    12. Li, Yibo & Jia, Xiaofen, 2023. "Asymmetric role of natural resources in uplifting the economic status of resource-rich economies," Resources Policy, Elsevier, vol. 85(PB).
    13. Liu, Kaiyuan & Afzal, Ayesha & Zhong, Yifan & Hasnaoui, Amir & Yue, Xiao-Guang, 2023. "Investigating the resource curse: Evidence from MENA and N-11 countries," Resources Policy, Elsevier, vol. 80(C).
    14. Khan, Zeeshan & Hossain, Mohammad Razib & Badeeb, Ramez Abubakr & Zhang, Changyong, 2023. "Aggregate and disaggregate impact of natural resources on economic performance: Role of green growth and human capital," Resources Policy, Elsevier, vol. 80(C).
    15. Dai, Siwei & Du, Xiaoyan, 2023. "Discovering the role of trade diversification, natural resources, and environmental policy stringency on ecological sustainability in the BRICST region," Resources Policy, Elsevier, vol. 85(PB).
    16. Long, Hai & Li, Wen-Wei & Otrakçı, Caner, 2023. "Sustaining environment through natural resource and human development: Revisiting EKC curve in China through BARDL," Resources Policy, Elsevier, vol. 85(PB).
    17. Zheng, ShiYong & Liu, Hua & Hafeez, Muhammad & Wang, Xiaofeng & Fahad, Shah & Yue, Xiao-Guang, 2023. "Testing the resource curse hypothesis: The dynamic roles of institutional quality, inflation and growth for Dragon," Resources Policy, Elsevier, vol. 85(PA).
    18. Wei, Xuecheng & Bai, Yang, 2023. "The role of green financing and natural resources towards sustainable environment: A comparative study of US-China," Resources Policy, Elsevier, vol. 85(PA).
    19. Huang, Haiping & Huang, Baolian & Sun, Aijun, 2023. "How do mineral resources influence eco-sustainability in China? Dynamic role of renewable energy and green finance," Resources Policy, Elsevier, vol. 85(PA).
    20. Abid, Mehdi, 2016. "Impact of economic, financial, and institutional factors on CO2 emissions: Evidence from Sub-Saharan Africa economies," Utilities Policy, Elsevier, vol. 41(C), pages 85-94.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006323. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.