IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v79y2023icp70-88.html
   My bibliography  Save this article

Towards sustainable development goals: Does common prosperity contradict carbon reduction?

Author

Listed:
  • Liu, Yang
  • Dong, Kangyin
  • Wang, Jianda
  • Taghizadeh-Hesary, Farhad

Abstract

In the light of China’s synergistic need to achieve Sustainable Development Goals (SDG) 10 and 13, it is necessary to consider the potential nexus between common prosperity and carbon reduction. Therefore, this work proposes a new comprehensive measure to assess the degree of common prosperity in 30 Chinese provinces from 2006 to 2019. Furthermore, we examine the impact of common prosperity on carbon emissions applying the system-generalized method of moments (SYS-GMM) approach. All major conclusions are as follows: (1) the level of common prosperity has continued to increase between 2006 and 2019; (2) common prosperity and carbon reduction are compatible with each other, i.e., common prosperity significantly reduces carbon emissions; (3) common prosperity reduces carbon emissions indirectly by improving labor productivity and upgrading industrial structure; (4) carbon emissions are indirectly increased by common prosperity through the expansion of gross fixed capital formation and higher levels of urbanization, and (5) in provinces with higher levels of common prosperity and lower levels of carbon emissions, common prosperity has a considerably greater influence on carbon emissions. Finally, we suggest several policy implications for promoting China’s sustainable development.

Suggested Citation

  • Liu, Yang & Dong, Kangyin & Wang, Jianda & Taghizadeh-Hesary, Farhad, 2023. "Towards sustainable development goals: Does common prosperity contradict carbon reduction?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 70-88.
    • Handle: RePEc:eee:ecanpo:v:79:y:2023:i:c:p:70-88
    DOI: 10.1016/j.eap.2023.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592623001145
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2023.06.002?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. Ding, Yang & Li, Feng, 2017. "Examining the effects of urbanization and industrialization on carbon dioxide emission: Evidence from China's provincial regions," Energy, Elsevier, vol. 125(C), pages 533-542.
    2. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    3. Jafar Hussain & Chien‐Chiang Lee, 2022. "A green path towards sustainable development: Optimal behavior of the duopoly game model with carbon neutrality instruments," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1523-1541, December.
    4. Khan, Zeeshan & Ali, Shahid & Dong, Kangyin & Li, Rita Yi Man, 2021. "How does fiscal decentralization affect CO2 emissions? The roles of institutions and human capital," Energy Economics, Elsevier, vol. 94(C).
    5. Fang, Zhen, 2023. "Assessing the impact of renewable energy investment, green technology innovation, and industrialization on sustainable development: A case study of China," Renewable Energy, Elsevier, vol. 205(C), pages 772-782.
    6. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    7. Lin, Boqiang & Chen, Yu & Zhang, Guoliang, 2018. "Impact of technological progress on China's textile industry and future energy saving potential forecast," Energy, Elsevier, vol. 161(C), pages 859-869.
    8. Wenwen Li & Wenping Wang & Yu Wang & Yingbo Qin, 2017. "Industrial structure, technological progress and CO2 emissions in China: Analysis based on the STIRPAT framework," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(3), pages 1545-1564, September.
    9. Wu Xiaoman & Abdul Majeed & Dinara G. Vasbieva & Claire Emilienne Wati Yameogo & Nazim Hussain, 2021. "Natural resources abundance, economic globalization, and carbon emissions: Advancing sustainable development agenda," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 1037-1048, September.
    10. Zhenci Xu & Sophia N. Chau & Xiuzhi Chen & Jian Zhang & Yingjie Li & Thomas Dietz & Jinyan Wang & Julie A. Winkler & Fan Fan & Baorong Huang & Shuxin Li & Shaohua Wu & Anna Herzberger & Ying Tang & De, 2020. "Assessing progress towards sustainable development over space and time," Nature, Nature, vol. 577(7788), pages 74-78, January.
    11. Aisen, Ari & Veiga, Francisco José, 2013. "How does political instability affect economic growth?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 151-167.
    12. Wang, Yuan & Li, Li & Kubota, Jumpei & Han, Rong & Zhu, Xiaodong & Lu, Genfa, 2016. "Does urbanization lead to more carbon emission? Evidence from a panel of BRICS countries," Applied Energy, Elsevier, vol. 168(C), pages 375-380.
    13. He, Yong & Liao, Nuo & Lin, Kunrong, 2021. "Can China's industrial sector achieve energy conservation and emission reduction goals dominated by energy efficiency enhancement? A multi-objective optimization approach," Energy Policy, Elsevier, vol. 149(C).
    14. Wei, Ting & Chen, Shaoqing, 2020. "Dynamic energy and carbon footprints of urban transportation infrastructures: Differentiating between existing and newly-built assets," Applied Energy, Elsevier, vol. 277(C).
    15. Zesen Qian & Lingran Yuan & Shuo Wang & Qizheng Zhang & Binlei Gong, 2021. "Epidemics, Convergence, and Common Prosperity: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(6), pages 117-138, November.
    16. Elena Stupnikova & Tatyana Sukhadolets, 2019. "Construction Sector Role in Gross Fixed Capital Formation: Empirical Data from Russia," Economies, MDPI, vol. 7(2), pages 1-16, May.
    17. Fang Cai, 2021. "How Fast Has the Chinese Economy Grown?," Springer Books, in: Understanding China's Economy, chapter 0, pages 27-43, Springer.
    18. Lee, Hanol & Moumbark, Toure, 2022. "Climate change, corruption, and business bribes in South Asia," Finance Research Letters, Elsevier, vol. 47(PB).
    19. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    20. Wang, Jianda & Dong, Kangyin & Dong, Xiucheng & Taghizadeh-Hesary, Farhad, 2022. "Assessing the digital economy and its carbon-mitigation effects: The case of China," Energy Economics, Elsevier, vol. 113(C).
    21. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    22. Golley, Jane & Meng, Xin, 2012. "Income inequality and carbon dioxide emissions: The case of Chinese urban households," Energy Economics, Elsevier, vol. 34(6), pages 1864-1872.
    23. Zhao, Jun & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin & Jiang, Hongdian, 2022. "How does industrial structure adjustment reduce CO2 emissions? Spatial and mediation effects analysis for China," Energy Economics, Elsevier, vol. 105(C).
    24. Khuda Bakhsh & Sobia Rose & Muhammad Faisal Ali & Najid Ahmad & Muhammad Shahbaz, 2017. "Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS," Post-Print hal-02000433, HAL.
    25. Zhao, Jun & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin, 2021. "Assessing energy poverty and its effect on CO2 emissions: The case of China," Energy Economics, Elsevier, vol. 97(C).
    26. Li, Ke & Lin, Boqiang, 2015. "Impacts of urbanization and industrialization on energy consumption/CO2 emissions: Does the level of development matter?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1107-1122.
    27. Wang, Jianda & Dong, Kangyin & Sha, Yezhou & Yan, Cheng, 2022. "Envisaging the carbon emissions efficiency of digitalization: The case of the internet economy for China," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    28. Zhang, Xiaoling & Wang, Yue, 2017. "How to reduce household carbon emissions: A review of experience and policy design considerations," Energy Policy, Elsevier, vol. 102(C), pages 116-124.
    29. Ang, B.W. & Zhou, P. & Tay, L.P., 2011. "Potential for reducing global carbon emissions from electricity production--A benchmarking analysis," Energy Policy, Elsevier, vol. 39(5), pages 2482-2489, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zou, Fei & Huang, Lingyu & Ghaemi Asl, Mahdi & Delnavaz, Mohammad & Tiwari, Sunil, 2023. "Natural resources and green economic recovery in responsible investments: Role of ESG in context of Islamic sustainable investments," Resources Policy, Elsevier, vol. 86(PA).

    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. Wang, Bo & Wang, Jianda & Dong, Kangyin & Dong, Xiucheng, 2023. "Is the digital economy conducive to the development of renewable energy in Asia?," Energy Policy, Elsevier, vol. 173(C).
    2. Liu, Yang & Dong, Kangyin & Jiang, Qingzhe, 2023. "Assessing energy vulnerability and its impact on carbon emissions: A global case," Energy Economics, Elsevier, vol. 119(C).
    3. Liu, Yang & Wang, Jianda & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "How does natural resource abundance affect green total factor productivity in the era of green finance? Global evidence," Resources Policy, Elsevier, vol. 81(C).
    4. Yang, Senmiao & Wang, Jianda & Dong, Kangyin & Jiang, Qingzhe, 2023. "A path towards China's energy justice: How does digital technology innovation bring about a just revolution?," Energy Economics, Elsevier, vol. 127(PA).
    5. Wang, Bo & Zhao, Jun & Dong, Kangyin & Jiang, Qingzhe, 2022. "High-quality energy development in China: Comprehensive assessment and its impact on CO2 emissions," Energy Economics, Elsevier, vol. 110(C).
    6. Kangyin Dong & Yalin Han & Yue Dou & Muhammad Shahbaz, 2022. "Moving toward carbon neutrality: Assessing natural gas import security and its impact on CO2 emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 751-770, August.
    7. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Seun Damola Oladipupo & Ephraim Bonah Agyekum & Arunkumar Jayakumar & Nallapaneni Manoj Kumar, 2021. "Dominance of Fossil Fuels in Japan’s National Energy Mix and Implications for Environmental Sustainability," IJERPH, MDPI, vol. 18(14), pages 1-20, July.
    8. Dong, Kangyin & Dong, Xiucheng & Jiang, Qingzhe & Zhao, Jun, 2021. "Assessing energy resilience and its greenhouse effect: A global perspective," Energy Economics, Elsevier, vol. 104(C).
    9. Cai, Yurong & Zhou, Pengfei & Zhang, Yiting & Shen, Yang, 2023. "Natural resources extraction and sustainable environment: COP26 perspective for China," Resources Policy, Elsevier, vol. 82(C).
    10. Zhao, Congyu & Dong, Kangyin & Jiang, Hong-Dian & Wang, Kun & Dong, Xiucheng, 2023. "How does energy poverty eradication realize the path to carbon unlocking? The case of China," Energy Economics, Elsevier, vol. 121(C).
    11. Liu, Yang & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "How does energy aid mitigate the recipient countries’ carbon emissions?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 359-375.
    12. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Does green finance promote renewable energy? Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    13. Liu, Yang & Dong, Xiucheng & Dong, Kangyin, 2023. "Pathway to prosperity? The impact of low-carbon energy transition on China's common prosperity," Energy Economics, Elsevier, vol. 124(C).
    14. Fang, Ming & Njangang, Henri & Padhan, Hemachandra & Simo, Colette & Yan, Cheng, 2023. "Social media and energy justice: A global evidence," Energy Economics, Elsevier, vol. 125(C).
    15. Liu, Yang & Zhao, Xiaomeng & Dong, Kangyin & Jiang, Qingzhe, 2023. "Assessing the role of green finance in sustainable energy investments by power utilities: Evidence from China," Utilities Policy, Elsevier, vol. 84(C).
    16. Dong, Kangyin & Wang, Bo & Zhao, Jun & Taghizadeh-Hesary, Farhad, 2022. "Mitigating carbon emissions by accelerating green growth in China," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 226-243.
    17. Yulin Liu & Min Zhang & Rujia Liu, 2020. "The Impact of Income Inequality on Carbon Emissions in China: A Household-Level Analysis," Sustainability, MDPI, vol. 12(7), pages 1-22, March.
    18. Zhuoqi Teng & Yugang He & Zhi Qiao, 2023. "Exploring the Synergistic Effects of Digitalization and Economic Uncertainty on Environmental Sustainability: An Investigation from China," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    19. Dou, Yue & Zhao, Jun & Dong, Xiucheng & Dong, Kangyin, 2021. "Quantifying the impacts of energy inequality on carbon emissions in China: A household-level analysis," Energy Economics, Elsevier, vol. 102(C).
    20. Wang, Jianda & Wang, Kun & Dong, Kangyin & Zhang, Shiqiu, 2023. "Assessing the role of financial development in natural resource utilization efficiency: Does artificial intelligence technology matter?," Resources Policy, Elsevier, vol. 85(PA).

    More about this item

    Keywords

    Common prosperity; Carbon emissions; Sustainable development goal (SDG); SYS-GMM technique; China;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

    Statistics

    Access and download statistics

    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:ecanpo:v:79:y:2023:i:c:p:70-88. 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.journals.elsevier.com/economic-analysis-and-policy .

    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.