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Asymmetric investigation to track the effect of urbanization, energy utilization, fossil fuel energy and CO2 emission on economic efficiency in China: another outlook

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Abstract

The accelerated urbanization in China was already coupled with a steadily increasing demand for energy usage. The present study major aim was to determine the asymmetric influence of urbanization, energy utilization, fossil fuel energy and CO2 emission on economic progress in China by using an annual time series data varies from 1975 to 2017. Stationarity amid variables was verified by applying the unit root tests, while non-linear autoregressive distributed lag (NARDL) bounds testing model was used to examine the asymmetric impacts on variables with short- and long-run dynamics. Outcomes revealed that via short-run estimates, the negative shocks of energy usage cause significantly to increase the economic efficiency, but positive shocks of energy utilization display the adverse linkage with the economic progress. Similarly, the negative shocks of GDP per capita growth demonstrate a substantial upsurge in the economic progress, and the positive shocks establish the adverse influence towards economic growth. Further, the outcomes of short-run dynamics also exposed the negative shocks of urbanization significantly affected the economic growth, but positive shocks exposed the adversative influence on economic growth. The outcomes display that fossil fuel energy consumption showed a constructive impact to economic progress, and additionally, the variable CO2 emission also uncovered a positive shocks having significant impact on economic progress. Furthermore, the outcomes of long-run analysis express that energy utilization has negative and positive shocks that expose the adverse influence on economic progress of China. GDP per capita growth exposed the constructive influence on the economic growth in both shocks. The negative and positive shocks of urbanization demonstrate a noteworthy influence on economic growth. The variable fossil fuel energy consumption also exposed an optimistic influence on economic progress, and finally the influence of CO2 emission on economic growth is insignificant as the results exposed. The reducing carbon alteration target aims to be reached for China, and in the next several decades, it will encourage the green energy options in order to decrease carbon dioxide emission to avoid environmental pollution by raising its energy intensity.

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Authors and Affiliations

  1. College of Economics and Management, Henan Agricultural University, Zhengzhou, 450002, China

    Abdul Rehman & Hengyun Ma

  2. School of Economics, Quaid I Azam University Islamabad, Islamabad, Pakistan

    Muhammad Zubair Chishti

  3. Faculty of Economics and Administrative Sciences, Cag University, 33800, Mersin, Turkey

    Ilhan Ozturk

  4. Department of Medical Research, China Medical University Hospital, China Medical University, Taichung, Taiwan

    Ilhan Ozturk

  5. Department of Finance, Asia University, 500, Lioufeng Rd., Wufeng, 41354, Taichung, Taiwan

    Ilhan Ozturk

  6. Beijing Key Laboratory of New Energy and Low Carbon Development, School of Economics and Management, North China Electric Power University, Beijing, 102206, China

    Muhammad Irfan

  7. School of Economics, Zhejiang University, Hangzhou, 310027, China

    Munir Ahmad

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  1. Abdul Rehman
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  2. Hengyun Ma
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  3. Muhammad Zubair Chishti
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  4. Ilhan Ozturk
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  5. Muhammad Irfan
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Contributions

Abdul Rehman: Conceptualization, investigation, methodology, formal analysis, visualization and writing the original draft. Hengyun Ma, Muhammad Zubair Chishti and Ilhan Ozturk: investigation, visualization and review and editing. Muhammad Irfan and Munir Ahmad: review, editing and made suggestions of the manuscript.

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Rehman, A., Ma, H., Chishti, M.Z. et al. Asymmetric investigation to track the effect of urbanization, energy utilization, fossil fuel energy and CO2 emission on economic efficiency in China: another outlook. Environ Sci Pollut Res 28, 17319–17330 (2021). https://doi.org/10.1007/s11356-020-12186-w

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