IDEAS home Printed from https://ideas.repec.org/a/spt/admaec/v14y2024i6f14_6_16.html
   My bibliography  Save this article

Can the Development of Renewable Energy Improve Total-Factor Carbon Emissions Efficiency? Evidence from 30 Provinces in China

Author

Listed:
  • Zhen Zeng
  • Xianzhong Mu

Abstract

The global temperature is exceeding 1.5°C above pre-industrial levels due to the increasing carbon emissions, and developing renewable energy is expected to be one of the most effective solutions. However, whether the development of renewable energy contributes to curbing the carbon emissions while maintaining economic development is still under investigation. Using the total-factor carbon emission efficiency (TFCEE), this paper first measures the carbon emission abatement and economic development of 30 provinces in China from 2005 to 2019. Then, based on the super-efficiency slacks-based measure (SE-SBM) model, the panel threshold models and spatial Durbin models are established to comprehensively investigate the impact of RED on TFCEE. The findings reveal that: (1) RED significantly improves TFCEE. For every 1% increase in RED, TFCEE experiences a rise ranging from 0.020% to 0.035%. (2) The beneficial effect of RED on TFCEE increases with economic restructuring and technological progress. (3) The indirect impact of RED on TFCEE through spatial spillover is significantly greater than its direct effect. Potential transmission mechanisms for this spatial spillover effect are the cross-regional mobilization of renewable electricity and the diffusion and absorption of low-carbon knowledge and technologies. The above conclusions provide empirical evidence for China and other developing countries to formulate appropriate energy transformation strategies. Â

Suggested Citation

  • Zhen Zeng & Xianzhong Mu, 2024. "Can the Development of Renewable Energy Improve Total-Factor Carbon Emissions Efficiency? Evidence from 30 Provinces in China," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(6), pages 1-16.
  • Handle: RePEc:spt:admaec:v:14:y:2024:i:6:f:14_6_16
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/AMAE%2fVol%2014_6_16.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    2. Lin, Boqiang & Li, Zheng, 2022. "Towards world's low carbon development: The role of clean energy," Applied Energy, Elsevier, vol. 307(C).
    3. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    4. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2020. "Renewable energy consumption and economic growth nexus: Evidence from a threshold model," Energy Policy, Elsevier, vol. 139(C).
    5. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    6. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    7. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    8. Fakhri J. Hasanov & Zeeshan Khan & Muzzammil Hussain & Muhammad Tufail, 2021. "Theoretical Framework for the Carbon Emissions Effects of Technological Progress and Renewable Energy Consumption," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 810-822, September.
    9. Song, Malin & Du, Juntao & Tan, Kim Hua, 2018. "Impact of fiscal decentralization on green total factor productivity," International Journal of Production Economics, Elsevier, vol. 205(C), pages 359-367.
    10. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    11. Inglesi-Lotz, Roula, 2016. "The impact of renewable energy consumption to economic growth: A panel data application," Energy Economics, Elsevier, vol. 53(C), pages 58-63.
    12. Chen, Yang & Shao, Shuai & Fan, Meiting & Tian, Zhihua & Yang, Lili, 2022. "One man's loss is another's gain: Does clean energy development reduce CO2 emissions in China? Evidence based on the spatial Durbin model," Energy Economics, Elsevier, vol. 107(C).
    13. Nathan Nunn & Nancy Qian, 2014. "US Food Aid and Civil Conflict," American Economic Review, American Economic Association, vol. 104(6), pages 1630-1666, June.
    14. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    15. Dongho Han & Ilwon Seo, 2023. "Uncertainty in Market-Mediated Technology Transfer and Geographical Diffusion: Evidence from Chinese Technology Flow," Journal of Urban Technology, Taylor & Francis Journals, vol. 30(3), pages 3-22, May.
    16. Lee, Chi-Chuan & Zhang, Jian & Hou, Shanshuai, 2023. "The impact of regional renewable energy development on environmental sustainability in China," Resources Policy, Elsevier, vol. 80(C).
    17. Bhattacharya, Mita & Paramati, Sudharshan Reddy & Ozturk, Ilhan & Bhattacharya, Sankar, 2016. "The effect of renewable energy consumption on economic growth: Evidence from top 38 countries," Applied Energy, Elsevier, vol. 162(C), pages 733-741.
    18. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    19. Peng Li & Yaofu Ouyang & Lina Zhang, 2020. "The nonlinear impact of renewable energy on CO2 emissions: empirical evidence across regions in China," Applied Economics Letters, Taylor & Francis Journals, vol. 27(14), pages 1150-1155, July.
    20. Koçak, Emrah & Şarkgüneşi, Aykut, 2017. "The renewable energy and economic growth nexus in Black Sea and Balkan countries," Energy Policy, Elsevier, vol. 100(C), pages 51-57.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mingwei Li & Xianzhong Mu & Liang Xie & Zhen Zeng & Guangwen Hu, 2024. "Investigating the heterogeneous nonlinear effect of renewable energy development on green total factor productivity: evidence from provincial-level data in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(5), pages 13429-13453, May.
    2. Mehmet Balcilar & Ojonugwa Usman & George N. Ike, 2023. "Investing green for sustainable development without ditching economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 728-743, April.
    3. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2021. "Determinants of renewable energy consumption: Importance of democratic institutions," Renewable Energy, Elsevier, vol. 179(C), pages 75-83.
    4. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Does green finance promote renewable energy? Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    5. Yuxin Fang & Hongjun Cao & Jihui Sun, 2022. "Impact of Artificial Intelligence on Regional Green Development under China’s Environmental Decentralization System—Based on Spatial Durbin Model and Threshold Effect," IJERPH, MDPI, vol. 19(22), pages 1-27, November.
    6. Li, Shuangmei & Zhu, Xuehong & Zhang, Tao, 2023. "Optimum combination of heterogeneous environmental policy instruments and market for green transformation: Empirical evidence from China's metal sector," Energy Economics, Elsevier, vol. 123(C).
    7. Su, Min & Wang, Qiang & Li, Rongrong & Wang, Lili, 2022. "Per capita renewable energy consumption in 116 countries: The effects of urbanization, industrialization, GDP, aging, and trade openness," Energy, Elsevier, vol. 254(PB).
    8. Daryoosh Borzuei & Seyed Farhan Moosavian & Abolfazl Ahmadi, 2022. "Investigating the dependence of energy prices and economic growth rates with emphasis on the development of renewable energy for sustainable development in Iran," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 848-854, October.
    9. Iwona Bąk & Emilia Barej-Kaczmarek & Maciej Oesterreich & Beata Szczecińska & Katarzyna Wawrzyniak & Piotr Sulikowski, 2024. "The Impact of the Production and Consumption of Renewable Energy on Economic Growth—The Case of Poland," Sustainability, MDPI, vol. 16(24), pages 1-27, December.
    10. Yuting Feng & Tong Zhao, 2022. "Exploring the Nonlinear Relationship between Renewable Energy Consumption and Economic Growth in the Context of Global Climate Change," IJERPH, MDPI, vol. 19(23), pages 1-17, November.
    11. Hanhua Shao & Jixin Cheng & Yuansheng Wang & Xiaoming Li, 2022. "Can Digital Finance Promote Comprehensive Carbon Emission Performance? Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(16), pages 1-18, August.
    12. Ying Xie & Minglong Zhang, 2023. "Influence of Clean Energy and Financial Structure on China’s Provincial Carbon Emission Efficiency—Empirical Analysis Based on Spatial Spillover Effects," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    13. Azimi, Mohammad Naim & Rahman, Mohammad Mafizur & Maraseni, Tek, 2025. "Powering progress: The interplay of energy security and institutional quality in driving economic growth," Applied Energy, Elsevier, vol. 378(PA).
    14. Tenaw, Dagmawe, 2022. "Do traditional energy dependence, income, and education matter in the dynamic linkage between clean energy transition and economic growth in sub-Saharan Africa?," Renewable Energy, Elsevier, vol. 193(C), pages 204-213.
    15. Lin, Shu & Yuan, Ying, 2023. "China's resources curse hypothesis: Evaluating the role of green innovation and green growth," Resources Policy, Elsevier, vol. 80(C).
    16. Jiawen He & Yi Qin & Xiong Wang, 2024. "Impact of renewable energy consumption on sustainable development in Central Asia," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 6308-6323, December.
    17. Namahoro, Jean Pierre & Wu, Qiaosheng & Xiao, Haijun & Zhou, Na, 2021. "The asymmetric nexus of renewable energy consumption and economic growth: New evidence from Rwanda," Renewable Energy, Elsevier, vol. 174(C), pages 336-346.
    18. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    19. Le Sun & Congmou Zhu & Shaofeng Yuan & Lixia Yang & Shan He & Wuyan Li, 2022. "Exploring the Impact of Digital Inclusive Finance on Agricultural Carbon Emission Performance in China," IJERPH, MDPI, vol. 19(17), pages 1-18, September.
    20. Namahoro, J.P. & Nzabanita, J. & Wu, Q., 2021. "The impact of total and renewable energy consumption on economic growth in lower and middle- and upper-middle-income groups: Evidence from CS-DL and CCEMG analysis," Energy, Elsevier, vol. 237(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spt:admaec:v:14:y:2024:i:6:f:14_6_16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.