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Driving force of rising renewable energy in China: Environment, regulation and employment

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  • Zhao, Xu
  • Luo, Dongkun

Abstract

This paper studies the development of renewable energy in China by examining the driving force of environment quality, regulation and employment on renewable energy generation. We adopt renewable energy as a metric for environment quality, and test the relationship between renewable energy and income using Environment Kuznets Curve (EKC) theories. The impact of employment on renewable energy is tested, and dummy variables are used to indicate when the regulation was in effect. The results show that there exists a quadratic relationship between renewable energy and income. But the results fail to provide that the renewable energy generation is a job creator when the lagged unemployment rate is included as an explaining variable. We consider the employment population, and the finding shows that the employment can promote the development of renewable energy. The regulation has significantly positive impacts on renewable energy. The interaction of income and employment show that along with the income increases, the impacts of employment on renewable energy decrease. Our findings are helpful for government to figure out the determinants for rising the renewable energy generation, and take efficient measures to promote its development.

Suggested Citation

  • Zhao, Xu & Luo, Dongkun, 2017. "Driving force of rising renewable energy in China: Environment, regulation and employment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 48-56.
  • Handle: RePEc:eee:rensus:v:68:y:2017:i:p1:p:48-56
    DOI: 10.1016/j.rser.2016.09.126
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    Citations

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    Cited by:

    1. Dong, Kangyin & Sun, Renjin & Li, Hui & Liao, Hua, 2018. "Does natural gas consumption mitigate CO2 emissions: Testing the environmental Kuznets curve hypothesis for 14 Asia-Pacific countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 419-429.
    2. Xu, Bin & Lin, Boqiang, 2018. "Do we really understand the development of China's new energy industry?," Energy Economics, Elsevier, vol. 74(C), pages 733-745.
    3. Li, Ying & Pan, Dong-Zi, 2017. "The ebb and flow of tidal barrage development in Zhejiang Province, China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 380-389.
    4. Ji, Qiang & Zhang, Dayong, 2019. "How much does financial development contribute to renewable energy growth and upgrading of energy structure in China?," Energy Policy, Elsevier, vol. 128(C), pages 114-124.
    5. Wang, Qiang & Kwan, Mei-Po & Fan, Jie & Zhou, Kan & Wang, Ya-Fei, 2019. "A study on the spatial distribution of the renewable energy industries in China and their driving factors," Renewable Energy, Elsevier, vol. 139(C), pages 161-175.
    6. Ali, Ghaffar & Yan, Ningyu & Hussain, Jafar & Xu, Lilai & Huang, Yunfeng & Xu, Su & Cui, Shenghui, 2019. "Quantitative assessment of energy conservation and renewable energy awareness among variant urban communities of Xiamen, China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 230-238.
    7. Chen, S.J. & Tao, Z.C. & Fu, Y. & Zhu, M. & Li, W.L. & Li, X.D., 2017. "CO2 separation from offshore natural gas in quiescent and flowing states using 13X zeolite," Applied Energy, Elsevier, vol. 205(C), pages 1435-1446.
    8. Ming, Zeng & Ping, Zhang & Shunkun, Yu & Hui, Liu, 2017. "Overall review of the overcapacity situation of China’s thermal power industry: Status quo, policy analysis and suggestions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 768-774.
    9. Fang, Debin & Zhao, Chaoyang & Yu, Qian, 2018. "Government regulation of renewable energy generation and transmission in China’s electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 775-793.
    10. Dincer, Hasan & Yuksel, Serhat, 2019. "Balanced scorecard-based analysis of investment decisions for the renewable energy alternatives: A comparative analysis based on the hybrid fuzzy decision-making approach," Energy, Elsevier, vol. 175(C), pages 1259-1270.

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