IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v202y2023icp280-288.html
   My bibliography  Save this article

Unleashing the influence of industrialization and trade openness on renewable energy intensity using path model analysis: A roadmap towards sustainable development

Author

Listed:
  • Wang, Rongji
  • Laila, Ume
  • Nazir, Rabia
  • Hao, Xibin

Abstract

In the globalized world, the complicated relationship between macroeconomic variables has resulted in several challenges that have a diversified influence on renewable energy intensity and sustainable development. Accordingly, maintaining a desirable level of renewable energy intensity necessitates comprehensive research into the numerous impacts of its elements and the implementation of proactive strategies to address them. However, studies focusing on assessing the influence of industrialization and trade openness on China's renewable energy intensity are limited. To address this research gap, this study seeks to develop a path model to examine this relationship by accommodating the mediating role of technical innovations and economic development. Empirical results reveal that industrialization positively influences renewable energy intensity, while trade openness negatively affects it. On the flip side, the mediation results demonstrate that technical innovation negatively mediates the linkage between industrialization and renewable energy intensity. In a similar vein, economic development negatively mediates the association between trade openness and renewable energy intensity. Based on empirical findings, essential and valuable policy considerations related to renewable energy intensity and its variables' penalties are put forward while simultaneously improving sustainable development practices.

Suggested Citation

  • Wang, Rongji & Laila, Ume & Nazir, Rabia & Hao, Xibin, 2023. "Unleashing the influence of industrialization and trade openness on renewable energy intensity using path model analysis: A roadmap towards sustainable development," Renewable Energy, Elsevier, vol. 202(C), pages 280-288.
    • Handle: RePEc:eee:renene:v:202:y:2023:i:c:p:280-288
    DOI: 10.1016/j.renene.2022.11.035
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122016755
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.11.035?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. Michael Grubb & Paul Drummond & Alexandra Poncia & Will Mcdowall & David Popp & Sascha Samadi & Cristina Penasco & Kenneth Gillingham & Sjak Smulders & Matthieu Glachant & Gavin Hassall & Emi Mizuno &, 2021. "Induced innovation in energy technologies and systems: a review of evidence and potential implications for CO 2 mitigation," Post-Print hal-03189044, HAL.
    2. Mehrara, Mohsen, 2007. "Energy consumption and economic growth: The case of oil exporting countries," Energy Policy, Elsevier, vol. 35(5), pages 2939-2945, May.
    3. Daniel Trefler, 2004. "The Long and Short of the Canada-U. S. Free Trade Agreement," American Economic Review, American Economic Association, vol. 94(4), pages 870-895, September.
    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. Sbia, Rashid & Shahbaz, Muhammad & Hamdi, Helmi, 2014. "A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE," Economic Modelling, Elsevier, vol. 36(C), pages 191-197.
    6. Norazah Mohd Suki & Norbayah Mohd Suki & Arshian Sharif & Sahar Afshan, 2021. "The role of logistics performance for sustainable development in top Asian countries: Evidence from advance panel estimations," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 595-606, July.
    7. Adom, Philip Kofi, 2015. "Asymmetric impacts of the determinants of energy intensity in Nigeria," Energy Economics, Elsevier, vol. 49(C), pages 570-580.
    8. Muhammad Shahbaz & Samia Nasreen & Chong Hui Ling & Rashid Sbia, 2014. "Causality between Trade Openness and Energy Consumption- What Causes What in High, Middle and Low Income Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(4), pages 423-459.
    9. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
    10. Daniel Mara & Silviu Nate & Andriy Stavytskyy & Ganna Kharlamova, 2022. "The Place of Energy Security in the National Security Framework: An Assessment Approach," Energies, MDPI, vol. 15(2), pages 1-29, January.
    11. Liang, Jinhao & Irfan, Muhammad & Ikram, Muhammad & Zimon, Dominik, 2022. "Evaluating natural resources volatility in an emerging economy: The influence of solar energy development barriers," Resources Policy, Elsevier, vol. 78(C).
    12. Shaukat Ullah & Amna Mahmood & Surat Khan, 2020. "The Determinants of Intra-Party Elections in Pakistan: A Study of Major Political Parties," Liberal Arts and Social Sciences International Journal (LASSIJ), IDEA PUBLISHERS, vol. 4(2), pages 191-201.
    13. Inglesi-Lotz, Roula & Dogan, Eyup, 2018. "The role of renewable versus non-renewable energy to the level of CO2 emissions a panel analysis of sub- Saharan Africa’s Βig 10 electricity generators," Renewable Energy, Elsevier, vol. 123(C), pages 36-43.
    14. Li, Yi & Sun, Linyan & Feng, Taiwen & Zhu, Chunyan, 2013. "How to reduce energy intensity in China: A regional comparison perspective," Energy Policy, Elsevier, vol. 61(C), pages 513-522.
    15. Shahiduzzaman, Md. & Alam, Khorshed, 2013. "Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using logarithmic mean Divisia approach," Energy Policy, Elsevier, vol. 56(C), pages 341-351.
    16. Razzaq, Asif & Wang, Yufeng & Chupradit, Supat & Suksatan, Wanich & Shahzad, Farrukh, 2021. "Asymmetric inter-linkages between green technology innovation and consumption-based carbon emissions in BRICS countries using quantile-on-quantile framework," Technology in Society, Elsevier, vol. 66(C).
    17. Huang, Zhigang & Huang, Le, 2020. "Individual new energy consumption and economic growth in China," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    18. Pan, Xiongfeng & Uddin, Md. Kamal & Saima, Umme & Jiao, Zhiming & Han, Cuicui, 2019. "How do industrialization and trade openness influence energy intensity? Evidence from a path model in case of Bangladesh," Energy Policy, Elsevier, vol. 133(C).
    19. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, vol. 34(6), pages 2200-2208.
    20. Joseph D. Piotroski & Suraj Srinivasan, 2008. "Regulation and Bonding: The Sarbanes‐Oxley Act and the Flow of International Listings," Journal of Accounting Research, Wiley Blackwell, vol. 46(2), pages 383-425, May.
    21. Shalendra D. Sharma, 2002. "Why China survived the asian financial crisis?," Brazilian Journal of Political Economy, Center of Political Economy, vol. 22(2), pages 225-252.
    22. Zeng, Shihong & Tanveer, Arifa & Fu, Xiaolan & Gu, Yuxiao & Irfan, Muhammad, 2022. "Modeling the influence of critical factors on the adoption of green energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    23. Zhaosu Meng & Huan Wang & Baona Wang, 2018. "Empirical Analysis of Carbon Emission Accounting and Influencing Factors of Energy Consumption in China," IJERPH, MDPI, vol. 15(11), pages 1-15, November.
    24. Fang Su & Xiufang Liang & Sha Cai & Shaojian Chen & Shah Fahad, 2022. "Assessment of parent-subsidiary companies’ geographical distance effect on corporate social responsibility: a case of A-share listed companies," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 4922-4946, December.
    25. Irfan, Muhammad & Razzaq, Asif & Sharif, Arshian & Yang, Xiaodong, 2022. "Influence mechanism between green finance and green innovation: Exploring regional policy intervention effects in China," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    26. Mielnik, Otavio & Goldemberg, Jose, 2002. "Foreign direct investment and decoupling between energy and gross domestic product in developing countries," Energy Policy, Elsevier, vol. 30(2), pages 87-89, January.
    27. Destek, Mehmet Akif & Ulucak, Recep & Dogan, Eyüp, 2018. "Analyzing the Environmental Kuznets Curve for the EU countries: The role of ecological footprint," MPRA Paper 106882, University Library of Munich, Germany.
    28. Dogan, Eyup, 2015. "The relationship between economic growth and electricity consumption from renewable and non-renewable sources: A study of Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 534-546.
    29. Jesus Felipe (ed.), 2015. "Development and Modern Industrial Policy in Practice," Books, Edward Elgar Publishing, number 16411.
    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. Lee, Chien-Chiang & Wang, Chang-song & He, Zhiwen & Xing, Wen-wu & Wang, Keying, 2023. "How does green finance affect energy efficiency? The role of green technology innovation and energy structure," Renewable Energy, Elsevier, vol. 219(P1).
    2. Chu, Lan Khanh, 2024. "Towards achieving energy transition goal: How do green financial policy, environmental tax, economic complexity, and globalization matter?," Renewable Energy, Elsevier, vol. 222(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. Pan, Xiongfeng & Uddin, Md. Kamal & Saima, Umme & Jiao, Zhiming & Han, Cuicui, 2019. "How do industrialization and trade openness influence energy intensity? Evidence from a path model in case of Bangladesh," Energy Policy, Elsevier, vol. 133(C).
    2. Dargahi, Hassan & Khameneh, Kazem Biabany, 2019. "Energy intensity determinants in an energy-exporting developing economy: Case of Iran," Energy, Elsevier, vol. 168(C), pages 1031-1044.
    3. Chen, Huihui & Rehman, Mubeen Abdur & Luo, Jia & Ali, Madad, 2022. "Dynamic influence of natural resources, financial integration and eco-innovation on ecological sustainability in EKC framework: Fresh insights from China," Resources Policy, Elsevier, vol. 79(C).
    4. Adom, Philip Kofi, 2015. "Business cycle and economic-wide energy intensity: The implications for energy conservation policy in Algeria," Energy, Elsevier, vol. 88(C), pages 334-350.
    5. Cong Khai Dinh & Quang Thanh Ngo & Trung Thanh Nguyen, 2021. "Medium- and High-Tech Export and Renewable Energy Consumption: Non-Linear Evidence from the ASEAN Countries," Energies, MDPI, vol. 14(15), pages 1-16, July.
    6. Alam, Md. Mahmudul & Murad, Md. Wahid, 2020. "The impacts of economic growth, trade openness and technological progress on renewable energy use in organization for economic co-operation and development countries," Renewable Energy, Elsevier, vol. 145(C), pages 382-390.
    7. Yan Wu & Cong Hu & Xunpeng Shi, 2021. "Heterogeneous Effects of the Belt and Road Initiative on Energy Efficiency in Participating Countries," Energies, MDPI, vol. 14(18), pages 1-21, September.
    8. Jain, Princy & Goswami, Binoy, 2021. "Energy efficiency in South Asia: Trends and determinants," Energy, Elsevier, vol. 221(C).
    9. Zhang, Wenyue & Li, Jianan & Sun, Chuanwang, 2022. "The impact of OFDI reverse technology spillovers on China's energy intensity: Analysis of provincial panel data," Energy Economics, Elsevier, vol. 116(C).
    10. Huang, Junbing & Hao, Yu & Lei, Hongyan, 2018. "Indigenous versus foreign innovation and energy intensity in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1721-1729.
    11. Adom, Philip Kofi, 2016. "The transition between energy efficient and energy inefficient states in Cameroon," Energy Economics, Elsevier, vol. 54(C), pages 248-262.
    12. Huang, Junbing & Du, Dan & Tao, Qizhi, 2017. "An analysis of technological factors and energy intensity in China," Energy Policy, Elsevier, vol. 109(C), pages 1-9.
    13. Adom, Philip Kofi, 2015. "Determinants of energy intensity in South Africa: Testing for structural effects in parameters," Energy, Elsevier, vol. 89(C), pages 334-346.
    14. Muhlis Can & Zahoor Ahmed, 2023. "Towards sustainable development in the European Union countries: Does economic complexity affect renewable and non‐renewable energy consumption?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 439-451, February.
    15. 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.
    16. Zhang, Yue & Akram, Rabia & Ren, Siyu & Rehman, Mubeen Abdur & Abbas, Shujaat, 2023. "Determinants of sustainable energy in OECD countries: Role of technology and financial resources," Resources Policy, Elsevier, vol. 87(PB).
    17. Adom, Philip Kofi, 2015. "Asymmetric impacts of the determinants of energy intensity in Nigeria," Energy Economics, Elsevier, vol. 49(C), pages 570-580.
    18. Li, Yaya & Cobbinah, Joana & Abban, Olivier Joseph & Veglianti, Eleonora, 2023. "Does green manufacturing technology innovation decrease energy intensity for sustainable development?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1010-1025.
    19. Liu, Fei & Zhang, Xudong & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Asymmetric and moderating role of industrialisation and technological innovation on energy intensity: Evidence from BRICS economies," Renewable Energy, Elsevier, vol. 198(C), pages 1364-1372.
    20. Pan, Xiongfeng & Uddin, Md. Kamal & Han, Cuicui & Pan, Xianyou, 2019. "Dynamics of financial development, trade openness, technological innovation and energy intensity: Evidence from Bangladesh," Energy, Elsevier, vol. 171(C), pages 456-464.

    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:renene:v:202:y:2023:i:c:p:280-288. 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.journals.elsevier.com/renewable-energy .

    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.