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Urbanization, coal consumption and CO2 emissions nexus in China using bootstrap Fourier Granger causality test in quantiles

Author

Listed:
  • Kai Cheng

    (Huazhong University of Science and Technology
    Hubei University of Economics)

  • Hsin-Pei Hsueh

    (Hubei University of Economics)

  • Omid Ranjbar

    (Allameh Tabataba’i University
    Trade Promotion Organization of Iran)

  • Mei-Chih Wang

    (Providence University)

  • Tsangyao Chang

    (Feng Chia University)

Abstract

This short note aims at revisiting the causal links among urbanization, coal consumption and CO2 emissions in China using a newly developed Bootstrap Fourier Granger Causality in Quantile test over the period of 1969–2019. The quantile causality approach evaluates causal relationships in a more detailed and flexible way than the conditional mean causality analysis. While the causality definition of Granger (Econometrica 37:424–438, 1969) cannot provide information about a tail causal relation or nonlinear causalities, the Causality in Quantiles test allows us to determine whether extremely low or high changes matter for the urbanization-coal consumption- CO2 emission nexus. Granger causality test based on our proposed model indicates one-way Granger causality running from urbanization to both CO2 emissions (within 0.2 quantile) and coal consumption (within 0.4, 0.6 and 0.8 quantiles) in China. These empirical results have important policy implications for the government conducting urbanization and energy policies in China.

Suggested Citation

  • Kai Cheng & Hsin-Pei Hsueh & Omid Ranjbar & Mei-Chih Wang & Tsangyao Chang, 2021. "Urbanization, coal consumption and CO2 emissions nexus in China using bootstrap Fourier Granger causality test in quantiles," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 31-49, April.
    • Handle: RePEc:spr:lsprsc:v:14:y:2021:i:1:d:10.1007_s12076-020-00263-0
    DOI: 10.1007/s12076-020-00263-0
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    Cited by:

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    More about this item

    Keywords

    Urbanization; Coal consumption; CO2 emissions; Fourier expansion; Granger causality; Bootstrapping procedure; Quantile regression; China;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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