Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China
Abstract
:1. Introduction
2. Literature Review
2.1. Analysis of Economic Effects of Renewable Energy Consumption across the World
2.2. Analysis of the Economic Effects of Renewable Energy Consumption in China
3. Variable Description and Model Specification
3.1. Variable Description
3.2. Model Specification
4. Results and Discussion
4.1. Variables’ Statistical Description
4.2. Fundamental Statistical Analysis
4.3. Causality Analysis
4.4. Indirect and Direct Economic Effects of Renewable Energy Consumption
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable | Form | Definition | Source |
---|---|---|---|
Renewable energy consumption | ren | Renewable energy consumption is the share of renewable energy in total final energy consumption in log. | World Bank |
Economic growth | eco | Annual percentage growth rate of gross domestic product based on constant 2015 in log. | World Bank |
Gross capital formation | gro | Gross capital formation is the share of gross domestic product in log. | World Bank |
Labor force | lab | Labor force participation rate, total (% of total population ages 15–64) in log. | World Bank |
Trade openness | tra | Trade is the sum of exports and imports of goods and services measured as a share of gross domestic product in log. | World Bank |
Research and development expenditure | tec | Research and development expenditure (% of gross domestic product) in log. | World Bank |
Foreign direct investment | for | Net inflows (% of gross domestic product) in log. | World Bank |
var/sta | ren | eco | gro | lab | tra | tec | for |
---|---|---|---|---|---|---|---|
mean | 1.285 | 0.936 | 1.606 | 1.902 | 1.612 | 0.153 | 0.473 |
max | 1.5323 | 1.153 | 1.669 | 1.926 | 1.809 | 0.707 | 0.791 |
min | 1.055 | 0.371 | 1.526 | 1.880 | 1.385 | −1.000 | 0.029 |
std | 0.187 | 0.159 | 0.045 | 0.018 | 0.109 | 0.312 | 0.216 |
ren | eco | gro | lab | tra | tec | for | |
---|---|---|---|---|---|---|---|
Pane A: Unit Root Test | |||||||
ADF-test (level) | −1.545 (0.113) | −0.501 (0.491) | 0.338 (0.776) | 0.476 (0.812) | 0.532 (0.825) | −1.578 (0.106) | −0.642 (0.431) |
PP-test (level) | −2.192 (0.029) | −0.522 (0.482) | 0.769 (0.874) | 0.816 (0.953) | 0.373 (0.786) | −1.744 (0.101) | −0.683 (0.413) |
∆ren | ∆eco | ∆gro | ∆lab | ∆tra | ∆tec | ∆for | |
ADF-test (first difference) | −2.347 (0.021) | −3.232 (0.002) | −3.609 (0.001) | −4.586 (0.000) | −3.686 (0.001) | −7626 (0.000) | −4.387 (0.000) |
PP-test (first difference) | −2.235 (0.027) | −3.232 (0.002) | −3.549 (0.001) | −4.640 (0.000) | −3.667 (0.001) | −10.303 (0.000) | −4.299 (0.000) |
Panel B: Cointegration test | |||||||
Trace statistics | Critical value 5% | Max-eigen value | Critical value 5% | ||||
r = 0 | 179.444 | 125.615 | 58.542 | 46.231 | |||
r ≤ 1 | 120.901 | 95.753 | 45.004 | 40.077 | |||
r ≤ 2 | 75.897 | 69.819 | 25.965 | 33.877 | |||
r ≤ 3 | 49.932 | 47.856 | 20.421 | 27.584 | |||
r ≤ 4 | 29.510 | 29.797 | 16.487 | 21.132 | |||
r ≤ 5 | 13.023 | 15.495 | 11.585 | 14.264 | |||
r ≤ 6 | 1.438 | 3.842 | 1.438 | 3.841 | |||
Panel C: Correlation test | |||||||
ren | eco | gro | lab | tra | tec | for | |
ren | 1.000 | ||||||
eco | 0.278 | 1.000 | |||||
gro | 0.847 | 0.024 | 1.000 | ||||
lab | 0.985 | 0.284 | −0.796 | 1.000 | |||
tra | 0.531 | 0.392 | 0.474 | −0.554 | 1.000 | ||
tec | 0.417 | 0.233 | 0.633 | −0.377 | 0.244 | 1.000 | |
for | 0.303 | 0.706 | −0.095 | 0.339 | 0.435 | 0.141 | 1.000 |
Null Hypothesis | F-Value | p-Value | Null Hypothesis | F-Value | p-Value |
---|---|---|---|---|---|
eco ≠ ren | 7.239 | 0.012 ** | gro ≠ eco | 2.864 | 0.088 * |
ren ≠ eco | 7.069 | 0.018 ** | eco ≠ gro | 0.695 | 0.508 |
gro ≠ ren | 1.742 | 0.196 | lab ≠ eco | 4.380 | 0.027 ** |
ren ≠ gro | 4.143 | 0.028 * | eco ≠ lab | 0.108 | 0.897 |
lab ≠ ren | 9.926 | 0.001 *** | tra ≠ eco | 2.851 | 0.077 * |
ren ≠ lab | 6.979 | 0.004 *** | eco ≠ tra | 0.126 | 0.881 |
tra ≠ ren | 3.624 | 0.042 | tec ≠ eco | 4.474 | 0.024 ** |
ren ≠ tra | 1.675 | 0.208 | eco ≠ tec | 0.674 | 0.518 |
tec ≠ ren | 0.660 | 0.525 | for ≠ eco | 9.507 | 0.001 *** |
ren ≠ tec | 1.285 | 0.294 | eco ≠ for | 1.717 | 0.201 |
for ≠ ren | 0.048 | 0.952 | lab ≠ gro | 3.989 | 0.032 ** |
ren ≠ for | 7.031 | 0.004 *** | gro ≠ lab | 0.045 | 0.955 |
tra ≠ gro | 0.394 | 0.678 | tec ≠ gro | 2.718 | 0.086 * |
gro ≠ tra | 4.112 | 0.029 ** | gro ≠ tec | 3.154 | 0.061 * |
for ≠ gro | 3.412 | 0.049 ** | tra ≠ lab | 0.703 | 0.505 |
gro ≠ for | 4.585 | 0.021 ** | lab ≠ tra | 9.519 | 0.001 *** |
tec ≠ lab | 0.355 | 0.704 | for ≠ lab | 0.691 | 0.510 |
lab ≠ tec | 1.624 | 0.218 | lab ≠ for | 7.232 | 0.004 *** |
tec ≠ tra | 1.525 | 0.237 | for ≠ tra | 0.140 | 0.870 |
tra ≠ tec | 0.133 | 0.875 | tra ≠ for | 0.961 | 0.396 |
for ≠ tec | 3.866 | 0.035 ** | tec ≠ for | 2.273 | 0.124 |
Direct Effect | Indirect Effect | ||
---|---|---|---|
ren → gro | 0.205 *** (8.581) | ren → gro → eco | 0.018 |
ren → lab | 0.094 *** (9.413) | ren → lab → eco | 0.024 |
ren → tra | 0.309 *** (3.372) | ren → tra → eco | 0.177 |
ren → tec | 0.694 ** (2.471) | ren → tec → eco | 0.083 |
ren → for | 0.349 * (1.713) | ren → for → eco | 0.182 |
ren → eco | 0.237 *** (3.197) | ||
gro → eco | 0.087 *** (3.296) | ||
lab → eco | 0.252 *** (5.934) | ||
tra → eco | 0.573 ** (2.297) | ||
tec → eco | 0.119 *** (2.891) | ||
for → eco | 0.522 *** (5.375) |
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He, Y.; Huang, P. Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China. Sustainability 2022, 14, 8212. https://doi.org/10.3390/su14138212
He Y, Huang P. Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China. Sustainability. 2022; 14(13):8212. https://doi.org/10.3390/su14138212
Chicago/Turabian StyleHe, Yugang, and Panpan Huang. 2022. "Exploring the Forms of the Economic Effects of Renewable Energy Consumption: Evidence from China" Sustainability 14, no. 13: 8212. https://doi.org/10.3390/su14138212