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Dynamic Relationship between Green Economy and Energy Utilization Level: Evidence from China

Author

Listed:
  • You He

    (School of Public Administration, Hohai University, Nanjing 211100, China)

  • Jinrui Zhang

    (School of Public Administration, Hohai University, Nanjing 211100, China)

  • Jie Feng

    (School of Education Science, Jiangsu Normal University, Xuzhou 221000, China)

  • Guoqing Shi

    (School of Public Administration, Hohai University, Nanjing 211100, China)

Abstract

Based on the panel data from 30 provinces in China from 2010 to 2020, this paper employs the panel vector autoregression (PVAR) model to investigate the dynamic relationship between a green economy and energy utilization level. The results show that: (1) the green economic development level and energy utilization level of 30 provinces in China have been continuously enhancing in recent years, the increase in green economic development level is higher than energy utilization level, and the geographical characteristics of both levels are significant, decreasing from East to West; (2) the causal relationship between the green economy and the energy utilization level has passed the Granger test; the two have formed a relatively high-level balanced relationship over a long period, showing a benign and orderly development trend; (3) the green economy generates a positive pulse response on energy utilization level in the initial period, but the impulse response weakens in the period of lag 1, entailing the relationship needs to be further strengthened in the long term; (4) in the process of continuous enhancement of energy utilization level, it is difficult to drive economic benefits due to high input costs in the initial stage, but it can form a two-way interaction relationship with a green economy as time goes by.

Suggested Citation

  • You He & Jinrui Zhang & Jie Feng & Guoqing Shi, 2022. "Dynamic Relationship between Green Economy and Energy Utilization Level: Evidence from China," Energies, MDPI, vol. 15(16), pages 1-14, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:16:p:5927-:d:889220
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    2. Rigen Mo & Xian-hong Peng & Shao-bu Wang & Justin Zuopeng Zhang, 2024. "Knowledge Mapping of Green Economy Research: A Bibliometric Analysis," SAGE Open, , vol. 14(4), pages 21582440241, November.
    3. Gao, Wang & Wei, Jiajia & Zhang, Hongwei & Zhang, Haizhen, 2024. "Does climate policy uncertainty exacerbate extreme risk spillovers between green economy and energy metals?," Resources Policy, Elsevier, vol. 91(C).
    4. Chen, Yongfei & Wei, Yu & Bai, Lan & Zhang, Jiahao, 2023. "Can Green Economy stocks hedge natural gas market risk? Evidence during Russia-Ukraine conflict and other crisis periods," Finance Research Letters, Elsevier, vol. 53(C).
    5. Kazemzadeh, Emad & Fuinhas, José Alberto & Salehnia, Narges & Silva, Nuno & Radulescu, Magdalena, 2024. "Revealing the essential and sufficient conditions for the energy consumption diversification," Energy, Elsevier, vol. 313(C).

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