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Linking Economic Growth, Urbanization, and Environmental Degradation in China: What Is the Role of Hydroelectricity Consumption?

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  • Tomiwa Sunday Adebayo

    (Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, Nicosia, Northern Cyprus, TR-10 Mersin, Turkey)

  • Mary Oluwatoyin Agboola

    (College of Business, Dar Al Uloom University, 1 Mizan st. Al Falah, Riyadh 13314, Saudi Arabia)

  • Husam Rjoub

    (Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10 99040, Turkey)

  • Ibrahim Adeshola

    (Department of Management Information Systems, School of Applied Sciences, Cyprus International University, Northern Cyprus, Via Mersin 10, Turkey)

  • Ephraim Bonah Agyekum

    (Department of Nuclear and Renewable Energy, Ural Federal University Named after the First President of Russia Boris Yeltsin, 19 Mira Street, 620002 Ekaterinburg, Russia)

  • Nallapaneni Manoj Kumar

    (School of Energy and Environment, City University of Hong Kong, Kowloon, Hong Kong, China)

Abstract

Achieving environmental sustainability has become a global initiative whilst addressing climate change and its effects. Thus, this research re-assessed the EKC hypothesis in China and considered the effect of hydroelectricity use and urbanization, utilizing data from 1985 to 2019. The autoregressive distributed lag (ARDL) bounds testing method was utilized to assess long-run cointegration, which is reinforced by a structural break. The outcome of the ARDL bounds test confirmed cointegration among the series. Furthermore, the ARDL revealed that both economic growth and urbanization trigger environmental degradation while hydroelectricity improves the quality of the environment. The outcome of the ARDL also validated the EKC hypothesis for China. In addition, the study employed the novel gradual shift causality test to capture causal linkage among the series. The advantage of the gradual shift causality test is that it can capture gradual or smooth shifts and does not necessitate previous information of the number, form of structural break(s), or dates. The outcomes of the causality test revealed causal connections among the series of interest.

Suggested Citation

  • Tomiwa Sunday Adebayo & Mary Oluwatoyin Agboola & Husam Rjoub & Ibrahim Adeshola & Ephraim Bonah Agyekum & Nallapaneni Manoj Kumar, 2021. "Linking Economic Growth, Urbanization, and Environmental Degradation in China: What Is the Role of Hydroelectricity Consumption?," IJERPH, MDPI, vol. 18(13), pages 1-14, June.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:13:p:6975-:d:584958
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    5. Marc Audi & Amjad Ali, 2023. "Unveiling the Role of Business Freedom to Determine Environmental Degradation in Developing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 157-164, September.
    6. Maryna Brychko & Yuriy Bilan & Serhiy Lyeonov & Dalia Streimikiene, 2023. "Do changes in the business environment and sustainable development really matter for enhancing enterprise development?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 587-599, April.
    7. Lixun Wang & Usman Mehmood & Ephraim Bonah Agyekum & Solomon Eghosa Uhunamure & Karabo Shale, 2022. "Associating Renewable Energy, Globalization, Agriculture, and Ecological Footprints: Implications for Sustainable Environment in South Asian Countries," IJERPH, MDPI, vol. 19(16), pages 1-13, August.
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    10. Balsalobre-Lorente, Daniel & Abbas, Jaffar & He, Chang & Pilař, Ladislav & Shah, Syed Ale Raza, 2023. "Tourism, urbanization and natural resources rents matter for environmental sustainability: The leading role of AI and ICT on sustainable development goals in the digital era," Resources Policy, Elsevier, vol. 82(C).
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