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Examining the Asymmetric Nexus between Energy Consumption, Technological Innovation, and Economic Growth; Does Energy Consumption and Technology Boost Economic Development?

Author

Listed:
  • Ayoub Zeraibi

    (School of Economics and Finance, Xi’an Jiao tong University, Xi’an 710061, China)

  • Daniel Balsalobre-Lorente

    (Department of Political Economy and Public Finance, Economics and Business Statistics and Economic Policy, University of Castilla-La Mancha, 50, 13001 Ciudad Real, Spain)

  • Khurram Shehzad

    (School of Economics and Management, Southeast University, Nanjing 211189, China)

Abstract

This study aims to explore the connection between the potential effects of energy consumption and technological innovation on economic growth in China from 1980 to 2018. The Non-Linear Autoregressive Distributive Lag (NARDL) econometric approach reveals an asymmetric connection between technological innovation, energy consumption, and economic growth in China from 1980 to 2018. The empirical results also reveal that a 1% decrease in energy consumption would imperatively decline economic growth by 12.5%. Moreover, a 1% upsurge in trademark applications improves economic growth by 8.2%. For the case of China, this study reveals that a large portion of the energy was used by families, which is regarded as a non-contributing element to the economy of China. This study suggests that the promotion and production of energy-efficient processes and products is necessary in order to make a more significant step toward sustainable development. The empirical findings also suggest that the Chinese government should regulate suitable policies aimed at promoting energy efficiency and the control of inefficient energy uses.

Suggested Citation

  • Ayoub Zeraibi & Daniel Balsalobre-Lorente & Khurram Shehzad, 2020. "Examining the Asymmetric Nexus between Energy Consumption, Technological Innovation, and Economic Growth; Does Energy Consumption and Technology Boost Economic Development?," Sustainability, MDPI, vol. 12(21), pages 1-17, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8867-:d:434695
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    2. Khang Yi Sim & Siok Kun Sek, 2025. "Examining the asymmetric effects of energy intensity in low‐ versus high‐income economies: New evidence using common correlated effects approach," Natural Resources Forum, Blackwell Publishing, vol. 49(1), pages 274-304, February.
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    6. Khurram Shehzad & Umer Zaman & Ana Ercília José & Emrah Koçak & Paulo Ferreira, 2021. "An Officious Impact of Financial Innovations and ICT on Economic Evolution in China: Revealing the Substantial Role of BRI," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    7. Osarumwense Osabuohien-Irabor & Igor Mikhailovich Drapkin, 2022. "The Impact of Technological Innovation on Energy Consumption in OECD Economies: the role of Outward Foreign Direct Investment and International Trade Openness," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 317-333, July.
    8. Chunyan He & Anjie Li & Ding Li & Junlin Yu, 2022. "Does Digital Inclusive Finance Mitigate the Negative Effect of Climate Variation on Rural Residents’ Income Growth in China?," IJERPH, MDPI, vol. 19(14), pages 1-19, July.
    9. Deng, Wei & Akram, Rabia & Mirza, Nawazish, 2022. "Economic performance and natural resources: Evaluating the role of economic risk," Resources Policy, Elsevier, vol. 78(C).
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    11. Wen, Jun & Mughal, Nafeesa & Kashif, Maryam & Jain, Vipin & Ramos Meza, Carlos Samuel & Cong, Phan The, 2022. "Volatility in natural resources prices and economic performance: Evidence from BRICS economies," Resources Policy, Elsevier, vol. 75(C).

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