IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v81y2023ics0301420723000624.html
   My bibliography  Save this article

Do renewable energy, urbanisation, and natural resources enhance environmental quality in China? Evidence from novel bootstrap Fourier Granger causality in quantiles

Author

Listed:
  • Zheng, Shiyong
  • Irfan, Muhammad
  • Ai, Fengyi
  • Al-Faryan, Mamdouh Abdulaziz Saleh

Abstract

Carbon emissions and ecological footprint (EF) have been criticized recently for being used in some empirical studies as a stand-in for assessing pollution. Ecological footprint ignores how nature meets ecological needs or biocapacity and solely represents environmental deterioration brought on by human demand for natural resources. As a result, the current study deviate from prior studies by utilizing load capacity factor (LF), as a gauge of ecological quality. The LF takes into account both the demand and supply sides of nature. Therefore, the current study fills the gap in the literature by utilizing LF, which permits a thorough ecological quality evaluation through the simultaneous analysis of EF and biocapacity. Utilizing the newly created Bootstrap Fourier Granger causality in quantiles (BFGC-Q) test, this paper evaluates the impact of urbanization, renewable energy, natural resources and economic growth on environmental proxies (EF, LF, and CO2) for China during 1990Q1–2018Q4. The BFGC-Q offers a thorough and flexible approach for evaluating causal linkages, unlike the FTY causality test, which does not reveal information about non-linear causalities and tail-causal interrelationships. Empirical findings show that REC, URB and NR promote ecological quality while GDP decreases ecological quality. Based on the findings, the paper formulates vital policy ramifications for China to accomplish SDGs 7, 8, 11 and 13.

Suggested Citation

  • Zheng, Shiyong & Irfan, Muhammad & Ai, Fengyi & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do renewable energy, urbanisation, and natural resources enhance environmental quality in China? Evidence from novel bootstrap Fourier Granger causality in quantiles," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000624
    DOI: 10.1016/j.resourpol.2023.103354
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723000624
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103354?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. Syed Ali Raza & Arshian Sharif & Wing Keung Wong & Mohd Zaini Abd Karim, 2017. "Tourism development and environmental degradation in the United States: evidence from wavelet-based analysis," Current Issues in Tourism, Taylor & Francis Journals, vol. 20(16), pages 1768-1790, December.
    2. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    3. Nazlioglu, Saban & Gormus, N. Alper & Soytas, Uğur, 2016. "Oil prices and real estate investment trusts (REITs): Gradual-shift causality and volatility transmission analysis," Energy Economics, Elsevier, vol. 60(C), pages 168-175.
    4. Ahmed Samour & M. Mine Baskaya & Turgut Tursoy, 2022. "The Impact of Financial Development and FDI on Renewable Energy in the UAE: A Path towards Sustainable Development," Sustainability, MDPI, vol. 14(3), pages 1-14, January.
    5. Gallant, A. Ronald, 1981. "On the bias in flexible functional forms and an essentially unbiased form : The fourier flexible form," Journal of Econometrics, Elsevier, vol. 15(2), pages 211-245, February.
    6. Shahbaz, Muhammad & Loganathan, Nanthakumar & Muzaffar, Ahmed Taneem & Ahmed, Khalid & Ali Jabran, Muhammad, 2016. "How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 83-93.
    7. Ahmed, Zahoor & Asghar, Muhammad Mansoor & Malik, Muhammad Nasir & Nawaz, Kishwar, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Resources Policy, Elsevier, vol. 67(C).
    8. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    9. Zahoor Ahmed & Muhammad Mansoor Asghar & Muhammad Nasir Malik & Kishwar Nawaz, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Post-Print hal-03557938, HAL.
    10. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
    11. Zheng, Li & Abbasi, Kashif Raza & Salem, Sultan & Irfan, Muhammad & Alvarado, Rafael & Lv, Kangjuan, 2022. "How technological innovation and institutional quality affect sectoral energy consumption in Pakistan? Fresh policy insights from novel econometric approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    12. Wang, Zhijian & Ben Jebli, Mehdi & Madaleno, Mara & Doğan, Buhari & Shahzad, Umer, 2021. "Does export product quality and renewable energy induce carbon dioxide emissions: Evidence from leading complex and renewable energy economies," Renewable Energy, Elsevier, vol. 171(C), pages 360-370.
    13. Samour, Ahmed & Moyo, Delani & Tursoy, Turgut, 2022. "Renewable energy, banking sector development, and carbon dioxide emissions nexus: A path toward sustainable development in South Africa," Renewable Energy, Elsevier, vol. 193(C), pages 1032-1040.
    14. Enders Walter & Jones Paul, 2016. "Grain prices, oil prices, and multiple smooth breaks in a VAR," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 20(4), pages 399-419, September.
    15. Yugang He & Xiang Li & Panpan Huang & Jingnan Wang, 2022. "Exploring the Road toward Environmental Sustainability: Natural Resources, Renewable Energy Consumption, Economic Growth, and Greenhouse Gas Emissions," Sustainability, MDPI, vol. 14(3), pages 1-16, January.
    16. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    17. Adebayo, Tomiwa Sunday & Onifade, Stephen Taiwo & Alola, Andrew Adewale & Muoneke, Obumneke Bob, 2022. "Does it take international integration of natural resources to ascend the ladder of environmental quality in the newly industrialized countries?," Resources Policy, Elsevier, vol. 76(C).
    18. Balsalobre-Lorente, Daniel & Ibáñez-Luzón, Lucia & Usman, Muhammad & Shahbaz, Muhammad, 2022. "The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries," Renewable Energy, Elsevier, vol. 185(C), pages 1441-1455.
    19. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    20. Kai Cheng & Hsin-Pei Hsueh & Omid Ranjbar & Mei-Chih Wang & Tsangyao Chang, 2021. "Urbanization, coal consumption and CO2 emissions nexus in China using bootstrap Fourier Granger causality test in quantiles," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 31-49, April.
    21. Yu, Miao & Meng, Bo & Li, Rong, 2022. "Analysis of China's urban household indirect carbon emissions drivers under the background of population aging," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 114-125.
    22. Ehigiamusoe, Kizito Uyi & Dogan, Eyup, 2022. "The role of interaction effect between renewable energy consumption and real income in carbon emissions: Evidence from low-income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    23. Nathaniel, Solomon Prince & Yalçiner, Kürşat & Bekun, Festus Victor, 2021. "Assessing the environmental sustainability corridor: Linking natural resources, renewable energy, human capital, and ecological footprint in BRICS," Resources Policy, Elsevier, vol. 70(C).
    24. Elliott, Graham, 1999. "Efficient Tests for a Unit Root When the Initial Observation Is Drawn from Its Unconditional Distribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 767-783, August.
    25. Abbasi, Kashif Raza & Hussain, Khadim & Haddad, Akram Masoud & Salman, Asma & Ozturk, Ilhan, 2022. "The role of Financial Development and Technological Innovation towards Sustainable Development in Pakistan: Fresh insights from consumption and territory-based emissions," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    26. Faisal Faisal & Ruqiya Pervaiz & Nesrin Ozatac & Turgut Tursoy, 2021. "Exploring the relationship between carbon dioxide emissions, urbanisation and financial deepening for Turkey using the symmetric and asymmetric causality approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17374-17402, December.
    27. Ahmad, Fayyaz & Draz, Muhammad Umar & Chandio, Abbas Ali & Ahmad, Munir & Su, Lijuan & Shahzad, Farrukh & Jia, Mingqi, 2022. "Natural resources and environmental quality: Exploring the regional variations among Chinese provinces with a novel approach," Resources Policy, Elsevier, vol. 77(C).
    28. Irfan, Muhammad & Elavarasan, Rajvikram Madurai & Ahmad, Munir & Mohsin, Muhammad & Dagar, Vishal & Hao, Yu, 2022. "Prioritizing and overcoming biomass energy barriers: Application of AHP and G-TOPSIS approaches," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    29. Dogan, Eyup & Majeed, Muhammad Tariq & Luni, Tania, 2022. "Revisiting the nexus of ecological footprint, unemployment, and renewable and non-renewable energy for South Asian economies: Evidence from novel research methods," Renewable Energy, Elsevier, vol. 194(C), pages 1060-1070.
    30. Sinha, Avik & Shahbaz, Muhammad & Sengupta, Tuhin, 2018. "Renewable Energy Policies and Contradictions in Causality: A case of Next 11 Countries," MPRA Paper 87542, University Library of Munich, Germany, revised 17 Jun 2018.
    31. Islam, Md. Monirul & Irfan, Muhammad & Shahbaz, Muhammad & Vo, Xuan Vinh, 2022. "Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality," Renewable Energy, Elsevier, vol. 184(C), pages 1130-1149.
    32. Pata, Ugur Korkut & Isik, Cem, 2021. "Determinants of the load capacity factor in China: A novel dynamic ARDL approach for ecological footprint accounting," Resources Policy, Elsevier, vol. 74(C).
    33. 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.
    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. Louis David Junior Annor & Margarita Robaina & Elisabete Vieira, 2024. "Climbing the green ladder in Sub-Saharan Africa: dynamics of financial development, green energy, and load capacity factor," Environment Systems and Decisions, Springer, vol. 44(3), pages 607-623, September.
    2. Feng, Yanchao & Hu, Jin & Afshan, Sahar & Irfan, Muhammad & Hu, Mingjun & Abbas, Shujaat, 2023. "Bridging resource disparities for sustainable development: A comparative analysis of resource-rich and resource-scarce countries," Resources Policy, Elsevier, vol. 85(PA).
    3. Chen, Lu & Xie, Jiayue, 2024. "A deep connection among the natural resources, technical progress, efficient energy and sustainability: The mediating role of governance," Resources Policy, Elsevier, vol. 96(C).
    4. Ahmad, Mahmood & Peng, Tao & Awan, Ashar & Ahmed, Zahoor, 2023. "Policy framework considering resource curse, renewable energy transition, and institutional issues: Fostering sustainable development and sustainable natural resource consumption practices," Resources Policy, Elsevier, vol. 86(PB).
    5. Cao, Bing & Biqing, li & li, Jiaying & Hafeez, Muhammad, 2023. "An assessment of resource curse hypothesis for Chinese economy," Resources Policy, Elsevier, vol. 87(PB).
    6. Bai, Chengyu, 2024. "Financial development for sustainable resource efficiency: Fostering green growth in natural resource markets," Resources Policy, Elsevier, vol. 89(C).
    7. Dai, Siwei & Du, Xiaoyan, 2023. "Discovering the role of trade diversification, natural resources, and environmental policy stringency on ecological sustainability in the BRICST region," Resources Policy, Elsevier, vol. 85(PB).
    8. Tunahan Hacıimamoğlu & Vedat Cengiz, 2024. "Are Natural Resource Rents and Renewable Energy Consumption Solutions for Environmental Degradation? Fresh Insights from a Modified Ecological Footprint Model," Sustainability, MDPI, vol. 16(7), pages 1-20, March.
    9. Shobande, Olatunji A. & Tiwari, Aviral Kumar & Ogbeifun, Lawrence & Trabelsi, Nader, 2024. "Demystifying circular economy and inclusive green growth for promoting energy transition and carbon neutrality in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 666-681.
    10. Ullah, Sami & Lin, Boqiang, 2024. "Natural resources, renewable energy-environment nexus for Pakistan: A policy perspective," Resources Policy, Elsevier, vol. 90(C).
    11. Shi, Yang & Li, Jinlong & Fang, Zhen & Li, Ye & Hu, Han & Nie, Wei & Meng, Fuyu, 2024. "Probing the role of natural resources and urbanization towards ecological sustainability in BRICST economies," Resources Policy, Elsevier, vol. 91(C).
    12. Ahakwa, Isaac & Xu, Yi & Tackie, Evelyn Agba & Odai, Leslie Afotey & Sarpong, Francis Atta & Korankye, Benard & Ofori, Elvis Kwame, 2023. "Do natural resources and green technological innovation matter in addressing environmental degradation? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity," Resources Policy, Elsevier, vol. 85(PB).
    13. Soto, Gonzalo Hernández, 2024. "The effects of foreign direct investment on environmentally related technologies in Latin America," Resources Policy, Elsevier, vol. 90(C).
    14. Chen, Ping & Xi, JunYa & Li, Yuming & Ozturk, Ilhan & Ullah, Sana & Hafeez, Muhammad, 2024. "How do mineral resources trade and financial development affect green entrepreneurship in resource-rich economies?," Resources Policy, Elsevier, vol. 88(C).

    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. Tomiwa Sunday Adebayo & Mehmet Ağa, 2022. "The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?," Sustainability, MDPI, vol. 14(21), pages 1-20, October.
    2. Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji & Bekun, Festus Victor & Altuntaş, Mehmet, 2021. "Coal energy consumption beat renewable energy consumption in South Africa: Developing policy framework for sustainable development," Renewable Energy, Elsevier, vol. 175(C), pages 1012-1024.
    3. Ayhan Orhan & Tomiwa Sunday Adebayo & Sema Yılmaz Genç & Dervis Kirikkaleli, 2021. "Investigating the Linkage between Economic Growth and Environmental Sustainability in India: Do Agriculture and Trade Openness Matter?," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    4. Zheng, Li & Abbasi, Kashif Raza & Salem, Sultan & Irfan, Muhammad & Alvarado, Rafael & Lv, Kangjuan, 2022. "How technological innovation and institutional quality affect sectoral energy consumption in Pakistan? Fresh policy insights from novel econometric approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    5. Yugang He, 2022. "Renewable and Non-Renewable Energy Consumption and Trade Policy: Do They Matter for Environmental Sustainability?," Energies, MDPI, vol. 15(10), pages 1-17, May.
    6. Durusu-Ciftci, Dilek & Soytas, Ugur & Nazlioglu, Saban, 2020. "Financial development and energy consumption in emerging markets: Smooth structural shifts and causal linkages," Energy Economics, Elsevier, vol. 87(C).
    7. 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).
    8. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    9. Nazlioglu, Saban & Gupta, Rangan & Gormus, Alper & Soytas, Ugur, 2020. "Price and volatility linkages between international REITs and oil markets," Energy Economics, Elsevier, vol. 88(C).
    10. Pata, Ugur Korkut & Caglar, Abdullah Emre, 2021. "Investigating the EKC hypothesis with renewable energy consumption, human capital, globalization and trade openness for China: Evidence from augmented ARDL approach with a structural break," Energy, Elsevier, vol. 216(C).
    11. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Jamiu Adetola Odugbesan & Gbenga Daniel Akinsola & Wing-Keung Wong & Husam Rjoub, 2021. "Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    12. Wang, Zihan & Chen, Xi & Ullah, Sami & Abbas, Shujaat, 2023. "Resource curse or blessing? Evaluating the role of natural resource, social globalization, and environmental sustainability in China," Resources Policy, Elsevier, vol. 85(PA).
    13. Ali, Adnan & Ramakrishnan, Suresh & Faisal, Faisal & Bazhair, Ayman Hassan & Sulimany, Hamid Ghazi H & Rahman, Sami Ur, 2024. "Does escaping the natural resource curse complement evading the financial resource curse too? Empirical evidence from Indonesia," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 539-555.
    14. Nazlioglu, Saban & Gupta, Rangan & Bouri, Elie, 2020. "Movements in international bond markets: The role of oil prices," International Review of Economics & Finance, Elsevier, vol. 68(C), pages 47-58.
    15. Wei, Zhanjun & Nie, Chen, 2024. "The dynamics of natural resources, renewable energy, and financial development on achieving ecological sustainability," Resources Policy, Elsevier, vol. 95(C).
    16. Pata, Ugur Korkut, 2021. "Linking renewable energy, globalization, agriculture, CO2 emissions and ecological footprint in BRIC countries: A sustainability perspective," Renewable Energy, Elsevier, vol. 173(C), pages 197-208.
    17. Balsalobre-Lorente, Daniel & Bekun, Festus Victor & Etokakpan, Mfonobong Udom & Driha, Oana M., 2019. "A road to enhancements in natural gas use in Iran: A multivariate modelling approach," Resources Policy, Elsevier, vol. 64(C).
    18. Appiah, Michael & Li, Mingxing & Sehrish, Saba & Abaji, Emad Eddin, 2023. "Investigating the connections between innovation, natural resource extraction, and environmental pollution in OECD nations; examining the role of capital formation," Resources Policy, Elsevier, vol. 81(C).
    19. Han, Guixin & Cai, Xuesen, 2024. "The linkages among natural resources, sustainable energy technologies and human capital: An evidence from N-11 countries," Resources Policy, Elsevier, vol. 90(C).
    20. Zhou, Runyu & Abbasi, Kashif Raza & Salem, Sultan & Almulhim, Abdulaziz.I. & Alvarado, Rafael, 2022. "Do natural resources, economic growth, human capital, and urbanization affect the ecological footprint? A modified dynamic ARDL and KRLS approach," Resources Policy, Elsevier, vol. 78(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:81:y:2023:i:c:s0301420723000624. 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.