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Energy efficiency and China’s carbon emissions: evidence from non-parametric approaches

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Abstract

In the recent times, the issue of excessive carbon emission is a hot topic among the scholars and governors. In this context, it is necessary to examine the factors affecting the emissions level, particularly in emerging economy like China. Using the extended period from 1990 to 2021, this study analyzes the impact of energy efficiency, economic growth, and renewable energy along with the testing of environmental Kuznets curve (EKC) paradox. The empirical results validate the cointegration between the mentioned variables. Employing the novel non-parametric approaches, this study found the existence of the EKC hypothesis in the country as the economic growth initially increases environmental challenges, while reducing it after reaching a specific income level. On the other hand, energy efficiency and renewable energy consumption are found to be significant tools for improving environmental sustainability and reducing of carbon emissions. The robustness of the results is confirmed by the non-parametric (bootstrap quantile regression) and parametric (fully modified ordinary least square) approaches. Based on the outcomes, this study also revealed policy implications for the scholars and governors.

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Data Availability

The data that support the findings of this study are available from the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) Website, and the World Bank (WB).

Notes

  1. Visit https://databank.worldbank.org/source/world-development-indicators

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Acknowledgements

Zhou Rong is grateful for the support of the Guangdong Planning Project of Philosophy and Social Science (GD22XGL63). Liu Li acknowledges the research support provided by the Anhui University of Finance and Economics.

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Authors and Affiliations

  1. Business School, Shunde Polytechnic University, Foshan, People’s Republic of China

    Rong Zhou

  2. Business School, Hunan University, Changsha, People’s Republic of China

    Li Zheng

  3. School of economics, Anhui University of Finance and Economics, Bengbu, Anhui, People’s Republic of China

    Liu Li

  4. School of Finance, Anhui University of Finance and Economics, Bengbu, Anhui, People’s Republic of China

    Najaf Iqbal

  5. School of Economics and Management, Huzhou University, Huzhou, 313000, Zhejiang, People’s Republic of China

    Zeeshan Fareed

  6. Center for Transdisciplinary Development Studies (CETRAD), University of Tras-os-Montes and Alto Douro (UTAD), Vila Real, Portugal

    Zeeshan Fareed

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  1. Rong Zhou
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Contributions

The idea of the original draft belongs to Rong Zhou and Li Zheng. Liu Li designed the experiment and collected the dataset. The introduction and literature review sections are written by Najaf Iqbal. Zeeshan Fareed constructed the methodology section and empirical outcomes in the study.

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Correspondence to Liu Li.

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Zhou, R., Zheng, L., Li, L. et al. Energy efficiency and China’s carbon emissions: evidence from non-parametric approaches. Energy Efficiency 16, 63 (2023). https://doi.org/10.1007/s12053-023-10142-4

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