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Combined nonlinear effects of economic growth and urbanization on CO2 emissions in China: Evidence from a panel data partially linear additive model

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  • Xie, Qichang
  • Liu, Junxian

Abstract

Economic growth and urbanization have been adequately studied due to their profound influence on pollution. However, the collective development of economy and urbanization poses a challenging problem in terms of reducing CO2 emissions. One of the prerequisites for solving this problem is to examine the simultaneous impacts of economic growth and urbanization on CO2 emissions. Within an extended STIRPAT framework, the present study aims to thoroughly investigate the combined nonlinear effects of economic growth and urbanization on CO2 emissions using provincial panel data from China that spans the period of 1997–2016. Considering the heterogeneity and dynamicity across the panel, this is the first attempt to comprehensively explore the selected variables and the CO2 emissions nexus by building a new two-way fixed-effects panel data partially linear additive model. The results show an inverted “U-shaped” nonlinear impact of economic growth on CO2 emissions, but urbanization has a different influence, revealing a “roller coaster” pattern with three turning points. The results also suggest that the factor of energy consumption will lead to an increase in CO2 emissions, while technology diffusion and industrial upgrading can facilitate the reduction of CO2 emissions. To provide an in-depth understanding of these impacts, nonlinear marginal analyses are performed at different stages of socioeconomic advancement. In addition, the consistency of the empirical results and the merits of the suggested method are corroborated by the different estimation techniques. The conclusion recommends that the evaluation of carbon pollution needs to be heightened by further research from multidimensional perspectives, and the concepts of green production and low-carbon development should be promoted to achieve the sustainable goals of the whole society.

Suggested Citation

  • Xie, Qichang & Liu, Junxian, 2019. "Combined nonlinear effects of economic growth and urbanization on CO2 emissions in China: Evidence from a panel data partially linear additive model," Energy, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:energy:v:186:y:2019:i:c:s0360544219315403
    DOI: 10.1016/j.energy.2019.115868
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    Cited by:

    1. Claudia García-García & Catalina B. García-García & Román Salmerón, 2021. "Confronting collinearity in environmental regression models: evidence from world data," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 30(3), pages 895-926, September.
    2. Shi, Changfeng & Zhi, Jiaqi & Yao, Xiao & Zhang, Hong & Yu, Yue & Zeng, Qingshun & Li, Luji & Zhang, Yuxi, 2023. "How can China achieve the 2030 carbon peak goal—a crossover analysis based on low-carbon economics and deep learning," Energy, Elsevier, vol. 269(C).
    3. Muhammad, Sulaman & Long, Xingle & Salman, Muhammad & Dauda, Lamini, 2020. "Effect of urbanization and international trade on CO2 emissions across 65 belt and road initiative countries," Energy, Elsevier, vol. 196(C).
    4. Tengfei Zhang & Yang Song & Jun Yang, 2021. "Relationships between urbanization and CO2 emissions in China: An empirical analysis of population migration," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-20, August.
    5. O.S. Mariev & N.B. Davidson & O.S. Emelianova, 2020. "The Impact of Urbanization on Carbon Dioxide Emissions in the Regions of Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(3), pages 286-309.
    6. Xinjin Li & Ruyin Long, 2021. "Dynamic Impact of Environmental Regulation on Environmental Performance in China: New Evidence from a Semiparametric Additive Panel Analysis," Sustainability, MDPI, vol. 13(18), pages 1-14, September.
    7. Feifei Tan & Shasha Yang & Zhiyuan Niu, 2023. "The impact of urbanization on carbon emissions: both from heterogeneity and mechanism test," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(6), pages 4813-4829, June.
    8. Shahnazi, Rouhollah & Dehghan Shabani, Zahra, 2021. "The effects of renewable energy, spatial spillover of CO2 emissions and economic freedom on CO2 emissions in the EU," Renewable Energy, Elsevier, vol. 169(C), pages 293-307.
    9. Sun, Yunpeng & Li, Haoning & Andlib, Zubaria & Genie, Mesfin G., 2022. "How do renewable energy and urbanization cause carbon emissions? Evidence from advanced panel estimation techniques," Renewable Energy, Elsevier, vol. 185(C), pages 996-1005.
    10. Luo, Yusen & Lu, Zhengnan & Long, Xingle, 2020. "Heterogeneous effects of endogenous and foreign innovation on CO2 emissions stochastic convergence across China," Energy Economics, Elsevier, vol. 91(C).
    11. Zhang, Wenwen & Chiu, Yi-Bin, 2020. "Do country risks influence carbon dioxide emissions? A non-linear perspective," Energy, Elsevier, vol. 206(C).
    12. Yu, Binbin, 2021. "Ecological effects of new-type urbanization in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    13. Qichang Xie & Yingkun Yan & Xu Wang, 2023. "Assessing the role of foreign direct investment in environmental sustainability: a spatial semiparametric panel approach," Economic Change and Restructuring, Springer, vol. 56(2), pages 1263-1295, April.
    14. Du, Weijian & Li, Mengjie & Wang, Faming, 2020. "Role of rent-seeking or technological progress in maintaining the monopoly power of energy enterprises: An empirical analysis based on micro-data from China," Energy, Elsevier, vol. 202(C).
    15. Zwakele Dlamini & Ntokozo Nzimande & Mduduzi Biyase & Hlalefang Khobai & Mathias Manguzvane & Sanele Gumede, 2024. "Carbon Emissions and Growth: The Role of Trade and Urbanization in Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 605-614, September.
    16. Xie, Qichang & Bai, Dingchuan & Cong, Xiaoping, 2022. "Modeling the dynamic influences of economic growth and financial development on energy consumption in emerging economies: Insights from dynamic nonlinear approaches," Energy Economics, Elsevier, vol. 116(C).
    17. Yin, Xiuling & Xu, Zhaoran, 2022. "An empirical analysis of the coupling and coordinative development of China's green finance and economic growth," Resources Policy, Elsevier, vol. 75(C).
    18. Zhonghua Cheng & Qingfei Xu & Ian Fraser Sanderson, 2021. "China's economic growth and haze pollution control," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2653-2669, July.
    19. Aristophane Djeufack Dongmo & Paloma Mbengono Coralie & Manuela Chetue Komguep & Ulrich Kembeng Tchinda, 2023. "Urbanization, informal economy, economic growth and CO2 emissions in African countries: a panel vector autoregression (PVAR) model approach," Journal of Bioeconomics, Springer, vol. 25(1), pages 35-63, April.
    20. Alexandra-Anca Purcel, 2020. "Developing states and the green challenge. A dynamic approach," Post-Print hal-03182341, HAL.
    21. Lin, Jinyao & Lu, Siyan & He, Xiaoyu & Wang, Fang, 2021. "Analyzing the impact of three-dimensional building structure on CO2 emissions based on random forest regression," Energy, Elsevier, vol. 236(C).
    22. Natalia Davidson & Oleg Mariev & Sophia Turkanova, 2021. "Does income inequality matter for CO2 emissions in Russian regions?," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(3), pages 533-551, September.
    23. Xie, Qichang & Wu, Haifeng & Ma, Yu, 2021. "Refining the asymctmetric impacts of oil price uncertainty on Chinese stock returns based on a semiparametric additive quantile regression analysis," Energy Economics, Elsevier, vol. 102(C).
    24. Irfan Khan & Fujun Hou, 2021. "The Impact of Socio-economic and Environmental Sustainability on CO2 Emissions: A Novel Framework for Thirty IEA Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1045-1076, June.

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