A nonparametric analysis of energy environmental Kuznets Curve in Chinese Provinces |
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| Affiliation: | 1. Department of Economics, Susquehanna University, Selinsgrove, PA 17870, USA;2. Department of Social Sciences/Economics, Western Connecticut State University, Danbury, CT 06810, USA;1. Montpellier Business School, Montpellier, France;2. School of Economics, University of Nottingham Malaysia Campus, Jalan Broga, 43500 Semenyih, Selangor, Malaysia;3. University College Dublin, UCD Michael Smurfit Graduate Business School, Carysfort Avenue, Blackrock, Co. Dublin, Ireland;4. Lebow College of Business, Drexel University, United States;5. Energy and Sustainable Development, Montpellier Business School, Montpellier, France;1. School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China;2. UIBE Belt & Road Energy Trade and Development Center, University of International Business and Economics, Beijing, 100029, China;3. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081 China;4. Department of Land Economy, University of Cambridge, Cambridge, CB2 1TN, UK;1. School of Management, Shandong Technology and Business University, Yantai 264005, China;2. School of Foreign Languages, Shandong Technology and Business University, Yantai 264005, China |
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| Abstract: | Energy resources are an important material foundation for the survival and development of human society, and the relationship between energy and economy is interactive and complementary. This paper analyzes the energy consumption–economic growth nexus in Chinese provinces using novel and recent nonparametric time-series as well as panel data empirical approaches. The dataset covers 30 provinces over the period of 1980–2018. The empirical analysis indicates the presence of a nonlinear functional form and smooth structural changes in most of the provinces. The nonparametric empirical analysis validates the presence of a nonlinear unit root problem in energy consumption and economic growth, and nonlinear cointegration between the variables. Additionally, the nonparametric panel cointegration test reports evidence of convergence in energy consumption and economic growth patterns across the provinces. The nonparametric regression analysis finds economic growth to have a positive effect, on average, on energy consumption in all provinces, except for Beijing. Further, the energy environmental Kuznets curve exists between economic growth and energy consumption in 20 out of 30 Chinese provinces. The Granger causality analysis reveals the presence of a mixed causal relationship between economic growth and energy consumption. The empirical findings have important implications for Chinese authorities in planning for improving energy efficiency, decoupling between economic growth and energy consumption, and reducing the environmental footprint of provinces. |
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