IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v80y2023ics0301420722006067.html
   My bibliography  Save this article

Renewable energy utilization, green finance and agricultural land expansion in China

Author

Listed:
  • Zhang, Hongsheng
  • Xiong, Peizhi
  • Yang, Shangzhao
  • Yu, Jinna

Abstract

Greenhouse gas (GHG) emissions, notably carbon dioxide (CO2), are causing anthropogenic global warming, posing severe dangers to the climate, economy, and environment. The dynamic effects of economic development, Renewable Energy (RE) use, green finance, and agricultural production development on CO2 emissions in China are investigated in this study. The ARDL (Auto-regressive distributed lag) bounds testing strategy was used to test series data from 1990 to 2020, supplemented by the DOLS (Dynamic Ordinary Least Squares) method. The results of the DOLS estimate demonstrate that the macroeconomic factor is positively and significantly related to CO2 emission, implying that a 1% rise in business development is associated with a 1.64 percent increase in CO2. Furthermore, the ratio of RE usage is harmful and substantial, meaning that boosting green finance use by 1% reduces CO2 emissions by 0.25 (0.26) percent over time. Moreover, the projected long-run correlation of farmland is positive and statistically significant, indicating that a 1% increase in farm production is associated with a 0.14 (0.15) percent rise in CO2 emissions in the long run. Industrial development and farmland expansion raise Carbon intensity. However, research shows that greater use of renewable energy and green finance will reduce China's carbon emissions and improve environmental protection. Different estimation techniques, including FMOLS (Fully Modified Ordinary Least Squares) and CCR (Canonical Cointegrating Regression), provide similar findings in DOLS. To accomplish a reduction in CO2 emissions and protect the environment, this research provides policy ideas to support renewable energy usage and weather patterns farming toward a low-carbon economy.

Suggested Citation

  • Zhang, Hongsheng & Xiong, Peizhi & Yang, Shangzhao & Yu, Jinna, 2023. "Renewable energy utilization, green finance and agricultural land expansion in China," Resources Policy, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:jrpoli:v:80:y:2023:i:c:s0301420722006067
    DOI: 10.1016/j.resourpol.2022.103163
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420722006067
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2022.103163?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chopra, Ritika & Magazzino, Cosimo & Shah, Muhammad Ibrahim & Sharma, Gagan Deep & Rao, Amar & Shahzad, Umer, 2022. "The role of renewable energy and natural resources for sustainable agriculture in ASEAN countries: Do carbon emissions and deforestation affect agriculture productivity?," Resources Policy, Elsevier, vol. 76(C).
    2. Sun, Yunpeng & Guan, Weimin & Cao, Yuning & Bao, Qun, 2022. "Role of green finance policy in renewable energy deployment for carbon neutrality: Evidence from China," Renewable Energy, Elsevier, vol. 197(C), pages 643-653.
    3. Abbasi, Kashif Raza & Hussain, Khadim & Radulescu, Magdalena & Ozturk, Ilhan, 2022. "Asymmetric impact of renewable and non-renewable energy on the industrial sector in Pakistan: Fresh evidence from Bayesian and non-linear ARDL," Renewable Energy, Elsevier, vol. 187(C), pages 944-957.
    4. Vural, Gulfer, 2020. "How do output, trade, renewable energy and non-renewable energy impact carbon emissions in selected Sub-Saharan African Countries?," Resources Policy, Elsevier, vol. 69(C).
    5. Uddin, Gazi Salah & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2014. "Financial development and poverty reduction nexus: A cointegration and causality analysis in Bangladesh," Economic Modelling, Elsevier, vol. 36(C), pages 405-412.
    6. Fernando Martín-Mayoral & Juan Fernández Sastre, 2017. "Determinants of social spending in Latin America during and after the Washington consensus: a dynamic panel error-correction model analysis," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 26(1), pages 1-32, December.
    7. Mohd Irfan & Krishnendu Shaw, 2017. "Modeling the effects of energy consumption and urbanization on environmental pollution in South Asian countries: a nonparametric panel approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 65-78, January.
    8. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    9. Su, Chi-Wei & Qin, Meng & Tao, Ran & Umar, Muhammad, 2020. "Financial implications of fourth industrial revolution: Can bitcoin improve prospects of energy investment?," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    10. Wang, Shaojian & Li, Guangdong & Fang, Chuanglin, 2018. "Urbanization, economic growth, energy consumption, and CO2 emissions: Empirical evidence from countries with different income levels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2144-2159.
    11. Su, Chi-Wei & Huang, Shi-Wen & Qin, Meng & Umar, Muhammad, 2021. "Does crude oil price stimulate economic policy uncertainty in BRICS?," Pacific-Basin Finance Journal, Elsevier, vol. 66(C).
    12. Qudrat-Ullah, Hassan, 2022. "A review and analysis of renewable energy policies and CO2 emissions of Pakistan," Energy, Elsevier, vol. 238(PB).
    13. John D. Levendis, 2018. "Unit Root Tests," Springer Texts in Business and Economics, in: Time Series Econometrics, chapter 7, pages 139-170, Springer.
    14. Andrew Q. Philips, 2018. "Have Your Cake and Eat It Too? Cointegration and Dynamic Inference from Autoregressive Distributed Lag Models," American Journal of Political Science, John Wiley & Sons, vol. 62(1), pages 230-244, January.
    15. Ding, Bingqing & Makowski, Marek & Nahorski, Zbigniew & Ren, Hongtao & Ma, Tieju, 2022. "Optimizing the technology pathway of China's liquid fuel production considering uncertain oil prices: A robust programming model," Energy Economics, Elsevier, vol. 115(C).
    16. Gazi Salah Uddin & Muhammed Shahbaz & Mohamed Arouri & Frédéric Teulon, 2014. "Financial Development and Poverty Reduction Nexus: A cointegration and causality analysis in Bangladesh," Working Papers 2014-291, Department of Research, Ipag Business School.
    17. Das, Monica & Basu, Sudip Ranjan, 2022. "Understanding the relationship between income inequality and pollution: A fresh perspective with cross-country evidence," World Development Perspectives, Elsevier, vol. 26(C).
    18. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    19. Song, Feng & Cui, Jian & Yu, Yihua, 2022. "Dynamic volatility spillover effects between wind and solar power generations: Implications for hedging strategies and a sustainable power sector," Economic Modelling, Elsevier, vol. 116(C).
    20. Mourad Zmami & Ousama Ben-Salha, 2019. "Does Oil Price Drive World Food Prices? Evidence from Linear and Nonlinear ARDL Modeling," Economies, MDPI, vol. 7(1), pages 1-18, February.
    21. John D. Levendis, 2018. "Time Series Econometrics," Springer Texts in Business and Economics, Springer, number 978-3-319-98282-3, June.
    22. Chai, Jingxia & Wu, Haitao & Hao, Yu, 2022. "Planned economic growth and controlled energy demand: How do regional growth targets affect energy consumption in China?," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    23. Guesmi, Khaled & Saadi, Samir & Abid, Ilyes & Ftiti, Zied, 2019. "Portfolio diversification with virtual currency: Evidence from bitcoin," International Review of Financial Analysis, Elsevier, vol. 63(C), pages 431-437.
    24. Wan, Qilong & Qian, Jine & Baghirli, Araz & Aghayev, Aligul, 2022. "Green finance and carbon reduction: Implications for green recovery," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 901-913.
    25. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    26. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Y.M. & Sab, Che Normee Binti Che, 2013. "Exploring the relationship between urbanization, energy consumption, and CO2 emission in MENA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 107-112.
    27. Zeb, Raheel & Salar, Laleena & Awan, Usama & Zaman, Khalid & Shahbaz, Muhammad, 2014. "Causal links between renewable energy, environmental degradation and economic growth in selected SAARC countries: Progress towards green economy," Renewable Energy, Elsevier, vol. 71(C), pages 123-132.
    28. Soren Jordan & Andrew Q. Philips, 2018. "Cointegration testing and dynamic simulations of autoregressive distributed lag modelsJournal: Stata Journal," Stata Journal, StataCorp LP, vol. 18(4), pages 902-923, December.
    29. James, Nick & Menzies, Max, 2022. "Global and regional changes in carbon dioxide emissions: 1970–2019," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 608(P1).
    30. Husna Purnama & Toto Gunarto & Ida Budiarty, 2020. "Effects of Energy Consumption, Economic Growth and Urbanization on Indonesian Environmental Quality," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 580-587.
    31. Rostami, Raheleh & Khoshnava, Seyed Meysam & Lamit, Hasanuddin & Streimikiene, Dalia & Mardani, Abbas, 2017. "An overview of Afghanistan's trends toward renewable and sustainable energies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1440-1464.
    32. Godwin Effiong Akpan & Usenobong Friday Akpan, 2012. "Electricity Consumption, Carbon Emissions and Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 292-306.
    33. Ur Rahman, Zia & Iqbal Khattak, Shoukat & Ahmad, Manzoor & Khan, Anwar, 2020. "A disaggregated-level analysis of the relationship among energy production, energy consumption and economic growth: Evidence from China," Energy, Elsevier, vol. 194(C).
    34. Hussain, Jamal & Khan, Anwar & Zhou, Kui, 2020. "The impact of natural resource depletion on energy use and CO2 emission in Belt & Road Initiative countries: A cross-country analysis," Energy, Elsevier, vol. 199(C).
    35. Wang, Shubin & Zhao, Erlong & Razzaq, Hafiz Kashif, 2022. "Dynamic role of renewable energy efficiency, natural resources, and climate technologies in realizing environmental sustainability: Implications for China," Renewable Energy, Elsevier, vol. 198(C), pages 1095-1104.
    36. Huang, Caihong & Zhang, Xiaoqing & Liu, Kai, 2021. "Effects of human capital structural evolution on carbon emissions intensity in China: A dual perspective of spatial heterogeneity and nonlinear linkages," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Erdogan, Sinan & Sarkodie, Samuel Asumadu, 2023. "The role of renewable and nuclear energy R&D expenditures and income on environmental quality in Germany: Scrutinizing the EKC and LCC hypotheses with smooth structural changes," Applied Energy, Elsevier, vol. 342(C).
    2. Di Foggia, Giacomo & Beccarello, Massimo, 2024. "Designing New Energy Markets to Promote Renewables," MPRA Paper 121783, University Library of Munich, Germany.
    3. Zhang, Dongyang & Guo, Yumei & Taghizadeh-Hesary, Farhad, 2023. "Green finance and energy transition to achieve net-zero emission target," Energy Economics, Elsevier, vol. 126(C).
    4. Taghizadeh-Hesary, Farhad & Dong, Kangyin & Zhao, Congyu & Phoumin, Han, 2023. "Can financial and economic means accelerate renewable energy growth in the climate change era? The case of China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 730-743.
    5. Gu, Xiao & Shen, Xi & Zhong, Xiangming & Wu, Tong & Rahim, Syed, 2023. "Natural resources and undesired productions of environmental outputs as green growth: EKC in the perspective of green finance and green growth in the G7 region," Resources Policy, Elsevier, vol. 82(C).
    6. Jiaqi Zhang & Hui Yong & Ning Lv, 2024. "Balancing Productivity and Sustainability: Insights into Cultivated Land Use Efficiency in Arid Region of Northwest China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13828-13856, September.
    7. Yunpeng Sun & Qun Bao & Farhad Taghizadeh-Hesary, 2023. "Green finance, renewable energy development, and climate change: evidence from regions of China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    8. Jin, Cheng & Luo, Shuangshuang & Sun, Kehan, 2023. "Energy Resources trade and investments for green growth: The case of Countries in the Asia-Pacific Economic Cooperation," Resources Policy, Elsevier, vol. 82(C).
    9. Clement Oteng & Omowumi Iledare & James Atta Peprah & Pius Gamette, 2024. "Towards Just Energy Transition: Renewable Energy Transition Dynamics and Sectorial Employment in Ghana," Sustainability, MDPI, vol. 16(9), pages 1-18, April.
    10. Chen Han & Lu Yang, 2024. "Financing and Management Strategies for Expanding Green Development Projects: A Case Study of Energy Corporation in China’s Renewable Energy Sector Using Machine Learning (ML) Modeling," Sustainability, MDPI, vol. 16(11), pages 1-33, May.
    11. George Ekonomou & Angeliki N. Menegaki, 2023. "China in the Renewable Energy Era: What Has Been Done and What Remains to Be Done," Energies, MDPI, vol. 16(18), pages 1-21, September.
    12. Julián Gómez & Rui Castro, 2024. "Green Hydrogen Energy Systems: A Review on Their Contribution to a Renewable Energy System," Energies, MDPI, vol. 17(13), pages 1-41, June.
    13. Rial, Rafael Cardoso, 2024. "Biofuels versus climate change: Exploring potentials and challenges in the energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 196(C).
    14. Fu, Qiang & Liu, Lianlian & Wang, Huizong, 2023. "Role of fossil fuels resources on high-quality economic development: Evidence from China," Resources Policy, Elsevier, vol. 86(PB).
    15. Wesam M. A. Hamed & Nesrin Özataç, 2024. "Spillover effects of financial development on renewable energy deployment and carbon neutrality: Does GCC institutional quality play a moderating role?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 27351-27374, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hossain, Mohammad Razib & Singh, Sanjeet & Sharma, Gagan Deep & Apostu, Simona-Andreea & Bansal, Pooja, 2023. "Overcoming the shock of energy depletion for energy policy? Tracing the missing link between energy depletion, renewable energy development and decarbonization in the USA," Energy Policy, Elsevier, vol. 174(C).
    2. Abbasi, Kashif Raza & Hussain, Khadim & Redulescu, Magdalena & Ozturk, Ilhan, 2021. "Does natural resources depletion and economic growth achieve the carbon neutrality target of the UK? A way forward towards sustainable development," Resources Policy, Elsevier, vol. 74(C).
    3. Abosedra, Salah & Shahbaz, Muhammad & Nawaz, Kishwar, 2015. "Modeling Causality between Financial Deepening and Poverty Reduction in Egypt," MPRA Paper 67166, University Library of Munich, Germany, revised 09 Oct 2015.
    4. Sy-Hoa Ho & Jamel Saadaoui, 2021. "Symmetric and asymmetric effects of exchange rates on money demand: empirical evidence from Vietnam," Applied Economics, Taylor & Francis Journals, vol. 53(34), pages 3948-3961, July.
    5. Orazaliyev Kanat & Zhijun Yan & Muhammad Mansoor Asghar & Syed Anees Haider Zaidi & Abdul Sami, 2024. "Gender Inequality and Poverty: The Role of Financial Development in Mitigating Poverty in Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11848-11876, September.
    6. Sy Hoa Ho & Jamel Saadaoui, 2019. "Symmetric and asymmetric effects of exchange rates on money demand: Empirical evidence from Vietnam," Working Papers hal-02421007, HAL.
    7. Ahmed, Walid M.A. & Sleem, Mohamed A.E., 2023. "Short- and long-run determinants of the price behavior of US clean energy stocks: A dynamic ARDL simulations approach," Energy Economics, Elsevier, vol. 124(C).
    8. Ousmane Traoré, 2021. "The relationship between health poverty and income poverty in Sub-Saharan African countries: evidence from index correlations," SN Business & Economics, Springer, vol. 1(10), pages 1-19, October.
    9. Murat Cetin & Harun Demir & Selin Saygin, 2021. "Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 47-69, July.
    10. Georgios Bertsatos & Plutarchos Sakellaris & Mike G. Tsionas, 2022. "Extensions of the Pesaran, Shin and Smith (2001) bounds testing procedure," Empirical Economics, Springer, vol. 62(2), pages 605-634, February.
    11. Kouadio, Hugues Kouassi & Gakpa, Lewis-Landry, 2022. "Do economic growth and institutional quality reduce poverty and inequality in West Africa?," Journal of Policy Modeling, Elsevier, vol. 44(1), pages 41-63.
    12. Maxwell Chukwudi Udeagha & Marthinus Christoffel Breitenbach, 2023. "The Role of Fiscal Decentralization in Limiting CO2 Emissions in South Africa," Biophysical Economics and Resource Quality, Springer, vol. 8(3), pages 1-30, September.
    13. Chindo Sulaiman & A. S. Abdul-Rahim, 2018. "Population Growth and CO2 Emission in Nigeria: A Recursive ARDL Approach," SAGE Open, , vol. 8(2), pages 21582440187, April.
    14. Galindo, Arturo J. & Steiner, Roberto, 2022. "Asymmetric interest rate transmission in an inflation-targeting framework: The case of Colombia," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 3(3).
    15. Moutinho, Victor & Santos de Oliveira, Helena M. & Viana Espinosa de Oliveira, Henrique & Puime Guillén, Félix, 2023. "The augmented and integrative model of economic growth: Theoretical and empirical evidence from USA," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    16. Pata, Ugur Korkut & Ertugrul, Hasan Murat, 2023. "Do the Kyoto Protocol, geopolitical risks, human capital and natural resources affect the sustainability limit? A new environmental approach based on the LCC hypothesis," Resources Policy, Elsevier, vol. 81(C).
    17. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    18. Oryani, Bahareh & Moridian, Ali & Sarkar, Biswajit & Rezania, Shahabaldin & Kamyab, Hesam & Khan, Muhammad Kamran, 2022. "Assessing the financial rеsоurсе curse hypothesis in Iran: Thе nоvеl dynаmiс АRDL approach," Resources Policy, Elsevier, vol. 78(C).
    19. Khurram Shehzad & Umer Zaman & Ana Ercília José & Emrah Koçak & Paulo Ferreira, 2021. "An Officious Impact of Financial Innovations and ICT on Economic Evolution in China: Revealing the Substantial Role of BRI," Sustainability, MDPI, vol. 13(16), pages 1-17, August.
    20. Jareño, Francisco & González, María de la O & Tolentino, Marta & Sierra, Karen, 2020. "Bitcoin and gold price returns: A quantile regression and NARDL analysis," Resources Policy, Elsevier, vol. 67(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:80:y:2023:i:c:s0301420722006067. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.