IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i8p6897-d1127598.html
   My bibliography  Save this article

Examining the Impact of Real Estate Development on Carbon Emissions Using Differential Generalized Method of Moments and Dynamic Panel Threshold Model

Author

Listed:
  • Chun Fu

    (School of Civil Engineering, Central South University, Changsha 410075, China)

  • Can Zhou

    (School of Civil Engineering, Central South University, Changsha 410075, China)

Abstract

The development of the real estate industry inevitably consumes large amounts of fossil energy and makes great contributions to China’s carbon emissions. However, very few research studies have explored the intrinsic link and influence mechanisms between the rapidly growing real estate sector and carbon emissions in China. Hence, this study investigated the impact of real estate development on carbon emissions using a differential generalized method of moments and dynamic panel threshold models. The empirical results show that: (1) There is a non-linear relationship between real estate development and China’s carbon emissions, first promoting and then inhibiting them with the increasing level of real estate development, but it will take a long time to reach the latter stage in the future; (2) The threshold effect of economic development levels on carbon emissions was identified with a threshold value of 9.904, and the positive impact of real estate development on China’s carbon emissions is more significant in economically backward areas; (3) The threshold effect of population sizes on carbon emissions was identified with a threshold value of 7.839, and in areas with larger populations, the positive impact of real estate development on China’s carbon emissions is more significant. The findings above extend the carbon emission literature by clarifying the threshold role of the economic development level and population size between real estate development and carbon emissions. Furthermore, the findings of this study are instructive for China to formulate energy-saving and emission-reduction policies according to local conditions and will ultimately contribute to achieving the goal of “carbon peaking” and “carbon neutrality”.

Suggested Citation

  • Chun Fu & Can Zhou, 2023. "Examining the Impact of Real Estate Development on Carbon Emissions Using Differential Generalized Method of Moments and Dynamic Panel Threshold Model," Sustainability, MDPI, vol. 15(8), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6897-:d:1127598
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/8/6897/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/8/6897/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    2. Stephanie Kremer & Alexander Bick & Dieter Nautz, 2013. "Inflation and growth: new evidence from a dynamic panel threshold analysis," Empirical Economics, Springer, vol. 44(2), pages 861-878, April.
    3. Runde Gu & Chunfa Li & Dongdong Li & Yangyang Yang & Shan Gu, 2022. "The Impact of Rationalization and Upgrading of Industrial Structure on Carbon Emissions in the Beijing-Tianjin-Hebei Urban Agglomeration," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    4. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    5. Guoyin Xu & Tong Zhao & Rong Wang, 2022. "Research on Carbon Emission Efficiency Measurement and Regional Difference Evaluation of China’s Regional Transportation Industry," Energies, MDPI, vol. 15(18), pages 1-19, September.
    6. Tie†Ying Liu & Chi†Wei Su & Hsu†Ling Chang & Chien†Chi Chu, 2018. "Is urbanization improving real estate investment? A cross†regional study of China," Review of Development Economics, Wiley Blackwell, vol. 22(2), pages 862-878, May.
    7. Daxue Kan & Lianju Lyu & Weichiao Huang & Wenqing Yao, 2022. "The Impact of Urban Education on the Income Gap of Urban Residents: Evidence from Central China," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    8. Yu Kong & John L. Glascock & Ran Lu-Andrews, 2016. "An Investigation into Real Estate Investment and Economic Growth in China: A Dynamic Panel Data Approach," Sustainability, MDPI, vol. 8(1), pages 1-18, January.
    9. He, Weijun & Wang, Bo & Danish, & Wang, Zhaohua, 2018. "Will regional economic integration influence carbon dioxide marginal abatement costs? Evidence from Chinese panel data," Energy Economics, Elsevier, vol. 74(C), pages 263-274.
    10. Yi Gao & Gaosheng Yang & Qiuhao Xie, 2020. "Spatial-Temporal Evolution and Driving Factors of Green Building Development in China," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    11. Jiangtao Li & Jianyue Ji & Huiwen Guo & Lei Chen, 2018. "Research on the Influence of Real Estate Development on Private Investment: A Case Study of China," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    12. Maddah, Majid & Ghaffari Nejad, Amir Hossein & Sargolzaei, Mostafa, 2022. "Natural resources, political competition, and economic growth: An empirical evidence from dynamic panel threshold kink analysis in Iranian provinces," Resources Policy, Elsevier, vol. 78(C).
    13. Li, Ke & Lin, Boqiang, 2015. "Metafroniter energy efficiency with CO2 emissions and its convergence analysis for China," Energy Economics, Elsevier, vol. 48(C), pages 230-241.
    14. Bianco, Vincenzo & Cascetta, Furio & Marino, Alfonso & Nardini, Sergio, 2019. "Understanding energy consumption and carbon emissions in Europe: A focus on inequality issues," Energy, Elsevier, vol. 170(C), pages 120-130.
    15. Joakim Westerlund, 2005. "New Simple Tests for Panel Cointegration," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 297-316.
    16. Yong Zhu & Congjia Huo, 2022. "The Impact of Agricultural Production Efficiency on Agricultural Carbon Emissions in China," Energies, MDPI, vol. 15(12), pages 1-22, June.
    17. Aydin, Celil & Esen, Ömer, 2018. "Does the level of energy intensity matter in the effect of energy consumption on the growth of transition economies? Evidence from dynamic panel threshold analysis," Energy Economics, Elsevier, vol. 69(C), pages 185-195.
    18. Xu, Shi-Chun & He, Zheng-Xia & Long, Ru-Yin, 2014. "Factors that influence carbon emissions due to energy consumption in China: Decomposition analysis using LMDI," Applied Energy, Elsevier, vol. 127(C), pages 182-193.
    19. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    20. Wang, Shaojian & Liu, Xiaoping & Zhou, Chunshan & Hu, Jincan & Ou, Jinpei, 2017. "Examining the impacts of socioeconomic factors, urban form, and transportation networks on CO2 emissions in China’s megacities," Applied Energy, Elsevier, vol. 185(P1), pages 189-200.
    21. Al-mulali, Usama & Binti Che Sab, Che Normee & Fereidouni, Hassan Gholipour, 2012. "Exploring the bi-directional long run relationship between urbanization, energy consumption, and carbon dioxide emission," Energy, Elsevier, vol. 46(1), pages 156-167.
    22. Wenqin Gong & Yu Kong, 2022. "Nonlinear Influence of Chinese Real Estate Development on Environmental Pollution: New Evidence from Spatial Econometric Model," IJERPH, MDPI, vol. 19(1), pages 1-22, January.
    23. Shan, Yuli & Liu, Jianghua & Liu, Zhu & Xu, Xinwanghao & Shao, Shuai & Wang, Peng & Guan, Dabo, 2016. "New provincial CO2 emission inventories in China based on apparent energy consumption data and updated emission factors," Applied Energy, Elsevier, vol. 184(C), pages 742-750.
    24. Martinsen, Dag & Krey, Volker & Markewitz, Peter, 2007. "Implications of high energy prices for energy system and emissions--The response from an energy model for Germany," Energy Policy, Elsevier, vol. 35(9), pages 4504-4515, September.
    25. Fang, Delin & Duan, Cuncun & Chen, Bin, 2020. "Average propagation length analysis for carbon emissions in China," Applied Energy, Elsevier, vol. 275(C).
    Full references (including those not matched with items on IDEAS)

    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. Dagar, Vishal & Dagher, Leila & Rao, Amar & Doytch, Nadia & Kagzi, Muneza, 2024. "Economic policy uncertainty: Global energy security with diversification," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 248-263.
    2. Luan, Bingjiang & Zou, Hong & Chen, Shuxing & Huang, Junbing, 2021. "The effect of industrial structure adjustment on China’s energy intensity: Evidence from linear and nonlinear analysis," Energy, Elsevier, vol. 218(C).
    3. Alessio Ciarlone, 2019. "The relationship between financial development and growth: the case of emerging Europe," Questioni di Economia e Finanza (Occasional Papers) 521, Bank of Italy, Economic Research and International Relations Area.
    4. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2020. "Renewable energy consumption and economic growth nexus: Evidence from a threshold model," Energy Policy, Elsevier, vol. 139(C).
    5. María del Carmen Ramos-Herrera & María A. Prats, 2020. "Fiscal Sustainability in the European Countries: A Panel ARDL Approach and a Dynamic Panel Threshold Model," Sustainability, MDPI, vol. 12(20), pages 1-14, October.
    6. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    7. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    8. Yanjun Yang & Rui Xue & Dong Yang, 2020. "Does market segmentation necessarily discourage energy efficiency?," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-19, May.
    9. Vinayagathasan, Thanabalasingam, 2013. "Inflation and economic growth: A dynamic panel threshold analysis for Asian economies," Journal of Asian Economics, Elsevier, vol. 26(C), pages 31-41.
    10. Ines TROJETTE, 2016. "The Effect Of Foreign Direct Investment On Economic Growth: The Institutional Threshold," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 111-138.
    11. Najia Saqib & Haider Mahmood & Aamir Hussain Siddiqui & Muhammad Asif Shamim, 2022. "The Link between Economic Growth and Sustainable Energy in G7-Countries and E7-Countries: Evidence from a Dynamic Panel Threshold Model," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 294-302, September.
    12. Xiaoxin Ma & Qiang Fu, 2020. "The Influence of Financial Development on Energy Consumption: Worldwide Evidence," IJERPH, MDPI, vol. 17(4), pages 1-15, February.
    13. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2021. "Determinants of renewable energy consumption: Importance of democratic institutions," Renewable Energy, Elsevier, vol. 179(C), pages 75-83.
    14. Gharehgozli, Orkideh, 2021. "An empirical comparison between a regression framework and the Synthetic Control Method," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 70-81.
    15. Saia, Artjom, 2023. "Digitalization and CO2 emissions: Dynamics under R&D and technology innovation regimes," Technology in Society, Elsevier, vol. 74(C).
    16. Federica Cappelli, 2024. "Unequal contributions to CO2 emissions along the income distribution within and between countries," Working Papers 2024.06, Fondazione Eni Enrico Mattei.
    17. Waseem Khadim & Saddam Ilyas & Bilal Mehmood, 2016. "Of Inflation and Growth Nexus in BRIMC Economies," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 32-45, January.
    18. Yasmin Bani & Ali Abdulkadir Ali Gutale & Abdul Samad Abdul-Rahim & Syamsul Herman Mohammad Afandi, 2024. "A Threshold Effect of Financial Development on Natural Resource Rents-Sustainable Human Development Nexus: Empirical Evidence from Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 63-79, November.
    19. Baum, Anja & Checherita-Westphal, Cristina & Rother, Philipp, 2013. "Debt and growth: New evidence for the euro area," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 809-821.
    20. Joëts, Marc & Mignon, Valérie, 2012. "On the link between forward energy prices: A nonlinear panel cointegration approach," Energy Economics, Elsevier, vol. 34(4), pages 1170-1175.

    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:gam:jsusta:v:15:y:2023:i:8:p:6897-:d:1127598. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.