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The Impact of Sustainable Development Technology on a Small Economy—The Case of Energy-Saving Technology

Author

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  • Xiding Chen

    (School of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China)

  • Qinghua Huang

    (College of Economics & Management, Southwest University, Chongqing 400715, China)

  • Weilun Huang

    (School of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China)

  • Xue Li

    (School of International Economics and Trade, Shanghai Lixin University of Accounting and Finance, Shanghai 201620, China)

Abstract

We investigated the impact of a sustainable development technology on the macroeconomic variables in a small economy utilizing a case study with a stochastically improving energy saving technology and a stochastically increasing energy price. The results show the technological displacement effects of energy saving technology are stronger, but there are more ambiguous instantaneous returns to physical capital. However, the energy saving technology’s displacement effects might not affect the conditions under which the Harberger-Laursen-Metzler (HLM) effect holds. The effects of rising energy prices on bonds are stronger, and there are more ambiguous instantaneous returns, but the conditions under which the HLM effect holds are different.

Suggested Citation

  • Xiding Chen & Qinghua Huang & Weilun Huang & Xue Li, 2018. "The Impact of Sustainable Development Technology on a Small Economy—The Case of Energy-Saving Technology," IJERPH, MDPI, vol. 15(2), pages 1-11, February.
    • Handle: RePEc:gam:jijerp:v:15:y:2018:i:2:p:295-:d:130925
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    2. Alkathery, Mohammed A. & Chaudhuri, Kausik & Nasir, Muhammad Ali, 2023. "Dependence between the GCC energy equities, global clean energy and emission markets: Evidence from wavelet analysis," Energy Economics, Elsevier, vol. 121(C).

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