IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Renewable energy consumption – Economic growth nexus for China

Listed author(s):
  • Lin, Boqiang
  • Moubarak, Mohamed
Registered author(s):

    The aim of this paper is to investigate the relationship between renewable energy consumption and economic growth in China for the period 1977–2011. Autoregressive Distributed Lag approach (ARDL) to cointegration and Johansen cointegration techniques are employed by including intermittent variables namely carbon dioxide emissions and labor. We also employed Granger causality test in order to determine the direction of the causality among the variables. The results show that there is a bi-directional long term causality between renewable energy consumption and economic growth. This finding implies that growing economy in China is propitious for the development of renewable energy sector which in turn helps to boost economic growth. We also find that labor influences renewable energy consumption in the short term. However, there is no evidence of long or short run causality between carbon emissions and renewable energy consumption. This implies that actual level of renewable energy in China is still insignificant and not considerably exploited in order to contribute to the mitigation of carbon dioxide emissions.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032114005802
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 40 (2014)
    Issue (Month): C ()
    Pages: 111-117

    as
    in new window

    Handle: RePEc:eee:rensus:v:40:y:2014:i:c:p:111-117
    DOI: 10.1016/j.rser.2014.07.128
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Yildirim, Ertuğrul & Saraç, Şenay & Aslan, Alper, 2012. "Energy consumption and economic growth in the USA: Evidence from renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6770-6774.
    2. Menegaki, Angeliki N., 2011. "Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis," Energy Economics, Elsevier, vol. 33(2), pages 257-263, March.
    3. Ohler, Adrienne & Fetters, Ian, 2014. "The causal relationship between renewable electricity generation and GDP growth: A study of energy sources," Energy Economics, Elsevier, vol. 43(C), pages 125-139.
    4. Śmiech, Sławomir & Papież, Monika, 2014. "Energy consumption and economic growth in the light of meeting the targets of energy policy in the EU: The bootstrap panel Granger causality approach," Energy Policy, Elsevier, vol. 71(C), pages 118-129.
    5. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and growth in Eurasia," Energy Economics, Elsevier, vol. 32(6), pages 1392-1397, November.
    6. Payne, James E., 2009. "On the dynamics of energy consumption and output in the US," Applied Energy, Elsevier, vol. 86(4), pages 575-577, April.
    7. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    8. Lean, Hooi Hooi & Smyth, Russell, 2013. "Are fluctuations in US production of renewable energy permanent or transitory?," Applied Energy, Elsevier, vol. 101(C), pages 483-488.
    9. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Ym & Sab, Che Normee Binti Che, 2013. "Examining the bi-directional long run relationship between renewable energy consumption and GDP growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 209-222.
    10. Sadorsky, Perry, 2009. "Renewable energy consumption and income in emerging economies," Energy Policy, Elsevier, vol. 37(10), pages 4021-4028, October.
    11. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    12. Magnani, Natalia & Vaona, Andrea, 2013. "Regional spillover effects of renewable energy generation in Italy," Energy Policy, Elsevier, vol. 56(C), pages 663-671.
    13. Marques, António Cardoso & Fuinhas, José Alberto, 2012. "Is renewable energy effective in promoting growth?," Energy Policy, Elsevier, vol. 46(C), pages 434-442.
    14. Tang, Chor Foon & Shahbaz, Muhammad & Arouri, Mohamed, 2013. "Re-investigating the electricity consumption and economic growth nexus in Portugal," Energy Policy, Elsevier, vol. 62(C), pages 1515-1524.
    15. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Y.M., 2014. "Electricity consumption from renewable and non-renewable sources and economic growth: Evidence from Latin American countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 290-298.
    16. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    17. Sabuhoro, Jean Bosco & Larue, Bruno, 1997. "The market efficiency hypothesis: The case of coffee and cocoa futures," Agricultural Economics, Blackwell, vol. 16(3), pages 171-184, August.
    18. Fang, Yiping, 2011. "Economic welfare impacts from renewable energy consumption: The China experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 5120-5128.
    19. de Arce, Rafael & Mahía, Ramón & Medina, Eva & Escribano, Gonzalo, 2012. "A simulation of the economic impact of renewable energy development in Morocco," Energy Policy, Elsevier, vol. 46(C), pages 335-345.
    20. Ocal, Oguz & Aslan, Alper, 2013. "Renewable energy consumption–economic growth nexus in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 494-499.
    21. do Valle Costa, Claudia & La Rovere, Emilio & Assmann, Dirk, 2008. "Technological innovation policies to promote renewable energies: Lessons from the European experience for the Brazilian case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(1), pages 65-90, January.
    22. Chang, Ting-Huan & Huang, Chien-Ming & Lee, Ming-Chih, 2009. "Threshold effect of the economic growth rate on the renewable energy development from a change in energy price: Evidence from OECD countries," Energy Policy, Elsevier, vol. 37(12), pages 5796-5802, December.
    23. Tugcu, Can Tansel & Ozturk, Ilhan & Aslan, Alper, 2012. "Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries," Energy Economics, Elsevier, vol. 34(6), pages 1942-1950.
    24. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2013. "Renewable energy, non-renewable energy and economic growth in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 381-392.
    25. Yıldırım, Ertugrul & Sukruoglu, Deniz & Aslan, Alper, 2014. "Energy consumption and economic growth in the next 11 countries: The bootstrapped autoregressive metric causality approach," Energy Economics, Elsevier, vol. 44(C), pages 14-21.
    26. Sabuhoro, Jean Bosco & Larue, Bruno, 1997. "The market efficiency hypothesis: the case of coffee and cocoa futures," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
    27. Md. Sharif Hossain & Chikayoshi Saeki, 2012. "A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Evidence from 76 Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(1), pages 1-13, March.
    28. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    29. Salim, Ruhul A. & Rafiq, Shuddhasattwa, 2012. "Why do some emerging economies proactively accelerate the adoption of renewable energy?," Energy Economics, Elsevier, vol. 34(4), pages 1051-1057.
    30. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "CO2 emissions, nuclear energy, renewable energy and economic growth in the US," Energy Policy, Elsevier, vol. 38(6), pages 2911-2915, June.
    31. Silva, Susana & Soares, Isabel & Afonso, Oscar, 2013. "Economic and environmental effects under resource scarcity and substitution between renewable and non-renewable resources," Energy Policy, Elsevier, vol. 54(C), pages 113-124.
    32. Akhmat, Ghulam & Zaman, Khalid, 2013. "Nuclear energy consumption, commercial energy consumption and economic growth in South Asia: Bootstrap panel causality test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 552-559.
    33. Chien, Taichen & Hu, Jin-Li, 2007. "Renewable energy and macroeconomic efficiency of OECD and non-OECD economies," Energy Policy, Elsevier, vol. 35(7), pages 3606-3615, July.
    34. Apergis, Nicholas & Payne, James E., 2011. "Renewable and non-renewable electricity consumption–growth nexus: Evidence from emerging market economies," Applied Energy, Elsevier, vol. 88(12), pages 5226-5230.
    35. Apergis, Nicholas & Payne, James E. & Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth," Ecological Economics, Elsevier, vol. 69(11), pages 2255-2260, September.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:40:y:2014:i:c:p:111-117. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.