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Natural gas consumption-economic output and environmental sustainability target in China: an N-shaped hypothesis inference

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Abstract

On one divide, energy types have been linked with the varying degree of environmental damage. Another perspective argued on the severity of the damaged base on per capita and/or population consumption pattern. As such, this study investigates the nexus of per capita natural gas consumption-carbon dioxide emissions and per capita income-carbon dioxide emissions in the case of the People of the Republic of China. This study objectively expanded to illustrate whether the N-shaped environmental Kuznets curve hypothesis holds in the case of China or not. The employed autoregressive distributed lag bound testing approach incorporated additional explanatory variables (urbanization) within the N-shaped EKC hypothesis over the period 1971–2018. Importantly, the results show an evidence of inverted N-shaped EKC relationship. In addition, the study posits a positive relationship between natural gas consumption and carbon dioxide emissions and between urbanization and carbon dioxide emissions. Thus, the study proposes renewable energy development and decongestion of the urban centers as a means of controlling global warming.

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Notes

  1. The data reported is for until 2015, which is the latest year with complete data in all groups.

  2. At the current consumption levels, excluding unproven reserves. Source: Statistical Review of World Energy and Energy International Agency (EIA).

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Authors and Affiliations

  1. Economics Department, Babcock University, Ikenne, Ogun State, Nigeria

    Mfonobong Udom Etokakpan

  2. Research Department, Central Bank of Nigeria, Abuja, Nigeria

    Seyi Saint Akadiri

  3. Department of Economics and Finance, Istanbul Gelisim University, Istanbul, Turkey

    Andrew Adewale Alola

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  1. Mfonobong Udom Etokakpan
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  2. Seyi Saint Akadiri
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  3. Andrew Adewale Alola
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Contributions

Andrew Adewale ALOLA: formal analysis, investigation, methodology, and corresponding; Mfonobong Udom ETOKAKPAN: writing-original draft and data curation; Seyi Saint AKADIRI: writing and conceptualization.

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Correspondence to Andrew Adewale Alola.

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Highlights

• Per capita income and environmental quality in China exhibit a “rise and fall” relationship.

• An inverted N-shaped environmental Kuznets curve hypothesis holds for China.

• Natural gas utilization hampers environmental quality in China.

• Increasing rate of urbanization is detrimental to the environment.

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Etokakpan, M.U., Akadiri, S.S. & Alola, A.A. Natural gas consumption-economic output and environmental sustainability target in China: an N-shaped hypothesis inference. Environ Sci Pollut Res 28, 37741–37753 (2021). https://doi.org/10.1007/s11356-021-13329-3

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