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China's energy consumption and sustainable development: Comparative evidence from GDP and genuine savings

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  • You, Jing

Abstract

This paper employs the structural vector autoregressions framework and the generalized impulse response function to study the long-term dynamic relation between China's energy consumption and sustainable economic growth. In addition to the conventional economic indicators (GDP growth rates), genuine savings rates are particularly examined to indicate sustainable economic development. Results show that the high elasticity of energy consumption dramatically undermines the capacity of China's sustainability in terms of reducing genuine savings rates. We also use variance decomposition to calculate relative variance contribution rates, in order to identify the most important factor affecting GDP growth as well as genuine savings rates. The analysis finds that clean and renewable energy increase the country's genuine savings significantly. That is, renewable energy consumption promotes sustainable development for both natural and economic societies. However, increase in traditional solid energy consumption is more likely to benefit only the growth of GDP.

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  • You, Jing, 2011. "China's energy consumption and sustainable development: Comparative evidence from GDP and genuine savings," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2984-2989, August.
  • Handle: RePEc:eee:rensus:v:15:y:2011:i:6:p:2984-2989
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    Cited by:

    1. Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic and financial development in 19 selected countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4365-4369.
    2. Ben Abdallah, Khaled & Belloumi, Mounir & De Wolf, Daniel, 2013. "Indicators for sustainable energy development: A multivariate cointegration and causality analysis from Tunisian road transport sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 34-43.
    3. repec:eee:energy:v:141:y:2017:i:c:p:1254-1268 is not listed on IDEAS
    4. Zhang, XiaoHong & Hu, He & Zhang, Rong & Deng, ShiHuai, 2014. "Interactions between China׳s economy, energy and the air emissions and their policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 624-638.
    5. Kang, Junjie & Yuan, Jiahai & Hu, Zhaoguang & Xu, Yan, 2012. "Review on wind power development and relevant policies in China during the 11th Five-Year-Plan period," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 1907-1915.
    6. Mahdi Ziaei, Sayyed, 2015. "Effects of financial development indicators on energy consumption and CO2 emission of European, East Asian and Oceania countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 752-759.
    7. Pottmaier, D. & Melo, C.R. & Sartor, M.N. & Kuester, S. & Amadio, T.M. & Fernandes, C.A.H. & Marinha, D. & Alarcon, O.E., 2013. "The Brazilian energy matrix: From a materials science and engineering perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 678-691.
    8. Liu, Xinyu & Liu, Gengyuan & Yang, Zhifeng & Chen, Bin & Ulgiati, Sergio, 2016. "Comparing national environmental and economic performances through emergy sustainability indicators: Moving environmental ethics beyond anthropocentrism toward ecocentrism," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1532-1542.
    9. Azadeh, A. & Babazadeh, R. & Asadzadeh, S.M., 2013. "Optimum estimation and forecasting of renewable energy consumption by artificial neural networks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 605-612.
    10. Bao, Chao & Fang, Chuang-lin, 2013. "Geographical and environmental perspectives for the sustainable development of renewable energy in urbanizing China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 464-474.
    11. repec:eee:rensus:v:76:y:2017:i:c:p:353-368 is not listed on IDEAS
    12. Al-mulali, Usama & Lee, Janice YM & Hakim Mohammed, Abdul & Sheau-Ting, Low, 2013. "Examining the link between energy consumption, carbon dioxide emission, and economic growth in Latin America and the Caribbean," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 42-48.
    13. Su, Yongxian & Chen, Xiuzhi & Li, Yong & Liao, Jishan & Ye, Yuyao & Zhang, Hongou & Huang, Ningsheng & Kuang, Yaoqiu, 2014. "China׳s 19-year city-level carbon emissions of energy consumptions, driving forces and regionalized mitigation guidelines," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 231-243.
    14. Al-mulali, Usama, 2016. "Exploring the bi-directional long run relationship between energy consumption and life quality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 824-837.

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