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Ecological footprint, electricity consumption, and economic growth in China: geopolitical risk and natural resources governance

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  • Cosimo Magazzino

    (Roma Tre University)

Abstract

This paper examines the relationship among ecological footprint (EF), electricity consumption, and GDP in China using annual data ranging from 1960 to 2019. However, factors like trade openness, urbanization, and life expectancy might increase EF as ecological distortions are mainly human-induced. This study explores the effect of these variables on the environment, which is captured by EF. Quantile Regression estimates indicate that electricity consumption and real GDP increase environmental degradation, while trade and urbanization reduce EF, allowing for a higher environmental quality. On the other hand, the spectral Granger-causality tests reveal that only urbanization and life expectancy affect environmental degradation over the whole frequency domain. In the current geopolitical scenario, relevant policy implications may be derived.

Suggested Citation

  • Cosimo Magazzino, 2024. "Ecological footprint, electricity consumption, and economic growth in China: geopolitical risk and natural resources governance," Empirical Economics, Springer, vol. 66(1), pages 1-25, January.
    • Handle: RePEc:spr:empeco:v:66:y:2024:i:1:d:10.1007_s00181-023-02460-4
    DOI: 10.1007/s00181-023-02460-4
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    Keywords

    CO2 emissions; Electric power consumption; Economic growth; Trade; Urbanization; Life expectancy; Time-series; China;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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