IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i5p1801-d1595872.html
   My bibliography  Save this article

Synergizing Renewable Energy and Circular Economy Strategies: Pioneering Pathways to Environmental Sustainability

Author

Listed:
  • Yinhui Wang

    (Department of International Trade, Jeonbuk National University, Jeonju 54896, Republic of Korea)

  • Yugang He

    (Department of Chinese Trade and Commerce, Sejong University, Seoul 05006, Republic of Korea)

  • Xiaodan Gao

    (School of Economics, Sichuan University of Science and Engineering, Yibin 644000, China)

Abstract

This article investigates the interplay between renewable energy utilization and the implementation of circular economy frameworks and its role in shaping environmental sustainability across 30 provinces in China from 2000 to 2023. When employing panel data methodologies, including fixed effects, dynamic ordinary least squares, and fully modified ordinary least squares, the results reveal that both the circular economy strategy and renewable energy utilization play significant roles in reducing CO 2 emissions. Renewable energy utilization has a strong negative association with CO 2 emissions, highlighting its transformative potential to decrease the reliance on fossil fuels and advance decarbonization. The circular economy strategy effectively enhances resource efficiency and minimizes waste, underscoring the efficacy of China’s Circular Economy Promotion Law in driving sustainable practices. The inclusion of control variables—industrialization, economic growth, urbanization, population density, and foreign direct investment—provides deeper insights into the diverse regional factors influencing emissions. These findings highlight the importance of implementing region-specific policy measures that integrate renewable energy transitions and the circular economy strategy to achieve environmental sustainability. While presenting robust evidence, this study acknowledges the need for future studies to overcome its limitations, such as studies exploring the function of technological advancements and the interprovincial spillover effects of policies, to further refine the strategies for sustainable development in rapidly industrializing economies.

Suggested Citation

  • Yinhui Wang & Yugang He & Xiaodan Gao, 2025. "Synergizing Renewable Energy and Circular Economy Strategies: Pioneering Pathways to Environmental Sustainability," Sustainability, MDPI, vol. 17(5), pages 1-22, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:5:p:1801-:d:1595872
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/5/1801/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/5/1801/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Yulong & Wang, Zheng & Zhong, Zhangqi, 2019. "CO2 emissions, economic growth, renewable and non-renewable energy production and foreign trade in China," Renewable Energy, Elsevier, vol. 131(C), pages 208-216.
    2. He, Xiaoping & Yu, Yuxuan & Jiang, Shuo, 2023. "City centrality, population density and energy efficiency," Energy Economics, Elsevier, vol. 117(C).
    3. Wang, Qiang & Kwan, Mei-Po & Fan, Jie & Zhou, Kan & Wang, Ya-Fei, 2019. "A study on the spatial distribution of the renewable energy industries in China and their driving factors," Renewable Energy, Elsevier, vol. 139(C), pages 161-175.
    4. Wang, Di & Zheng, Yao & Li, Guodong, 2024. "High-dimensional low-rank tensor autoregressive time series modeling," Journal of Econometrics, Elsevier, vol. 238(1).
    5. Danish I. Godil & Zhang Yu & Arshian Sharif & Rimsha Usman & Syed Abdul Rehman Khan, 2021. "Investigate the role of technology innovation and renewable energy in reducing transport sector CO2 emission in China: A path toward sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 694-707, July.
    6. Li, Menghan & Liu, Xiaoxiao & Yang, Mian, 2024. "Analyzing the regional inequality of renewable energy consumption and its driving factors: Evidence from China," Renewable Energy, Elsevier, vol. 223(C).
    7. Wang, Ying & Zhang, Dayong & Ji, Qiang & Shi, Xunpeng, 2020. "Regional renewable energy development in China: A multidimensional assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 124(C).
    8. Chudik, Alexander & Pesaran, M. Hashem, 2015. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
    9. Iain D. Stewart & Chris A. Kennedy & Angelo Facchini & Renata Mele, 2018. "The Electric City as a Solution to Sustainable Urban Development," Journal of Urban Technology, Taylor & Francis Journals, vol. 25(1), pages 3-20, January.
    10. Parra, David & Valverde, Luis & Pino, F. Javier & Patel, Martin K., 2019. "A review on the role, cost and value of hydrogen energy systems for deep decarbonisation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 279-294.
    11. Fang, Zhen, 2023. "Assessing the impact of renewable energy investment, green technology innovation, and industrialization on sustainable development: A case study of China," Renewable Energy, Elsevier, vol. 205(C), pages 772-782.
    12. Xu, Jie & Lv, Tao & Hou, Xiaoran & Deng, Xu & Li, Na & Liu, Feng, 2022. "Spatiotemporal characteristics and influencing factors of renewable energy production in China: A spatial econometric analysis," Energy Economics, Elsevier, vol. 116(C).
    13. Xia, Hui & Dai, Ling & Sun, Liping & Chen, Xi & Li, Yuening & Zheng, Yihan & Peng, Yanlai & Wu, Kaiya, 2023. "Analysis of the spatiotemporal distribution pattern and driving factors of renewable energy power generation in China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 414-428.
    14. Qadir, Saeed & Dosmagambet, Yergali, 2020. "CAREC energy corridor: Opportunities, challenges, and IMPACT of regional energy trade integration on carbon emissions and energy access," Energy Policy, Elsevier, vol. 147(C).
    15. Yugang He, 2024. "Evaluating Environmental Sustainability: The Role of Agriculture and Renewable Energy in South Korea," Agriculture, MDPI, vol. 14(9), pages 1-18, September.
    16. Zhao, Jun & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin & Jiang, Hongdian, 2022. "How does industrial structure adjustment reduce CO2 emissions? Spatial and mediation effects analysis for China," Energy Economics, Elsevier, vol. 105(C).
    17. Zhang, Sufang & Andrews-Speed, Philip & Li, Sitao, 2018. "To what extent will China's ongoing electricity market reforms assist the integration of renewable energy?," Energy Policy, Elsevier, vol. 114(C), pages 165-172.
    18. Christou, Christina & Pittis, Nikitas, 2002. "Kernel And Bandwidth Selection, Prewhitening, And The Performance Of The Fully Modified Least Squares Estimation Method," Econometric Theory, Cambridge University Press, vol. 18(4), pages 948-961, August.
    19. Bruns, Stephan B. & Moneta, Alessio & Stern, David I., 2021. "Estimating the economy-wide rebound effect using empirically identified structural vector autoregressions," Energy Economics, Elsevier, vol. 97(C).
    20. Bernard Fingleton, 2023. "Estimating dynamic spatial panel data models with endogenous regressors using synthetic instruments," Journal of Geographical Systems, Springer, vol. 25(1), pages 121-152, January.
    21. Matteo Pelagatti & Giacomo Sbrana, 2024. "Estimating correlations among elliptically distributed random variables under any form of heteroskedasticity," Quantitative Finance, Taylor & Francis Journals, vol. 24(3-4), pages 451-464, January.
    22. Xi Liu & Yugang He & Renhong Wu, 2024. "Revolutionizing Environmental Sustainability: The Role of Renewable Energy Consumption and Environmental Technologies in OECD Countries," Energies, MDPI, vol. 17(2), pages 1-21, January.
    23. Lei, Xiao & Chen, Xueli & Zhang, Bin, 2024. "Unleashing the spillover potential: Exploring the role of technology-seeking investment in driving green innovation of host countries," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    24. Luo, Shihua & Hu, Weihao & Liu, Wen & Xu, Xiao & Huang, Qi & Chen, Zhe & Lund, Henrik, 2021. "Transition pathways towards a deep decarbonization energy system—A case study in Sichuan, China," Applied Energy, Elsevier, vol. 302(C).
    25. Muhammad Uzair Ali & Zhimin Gong & Muhammad Ubaid Ali & Fahad Asmi & Rizwanullah Muhammad, 2022. "CO2 emission, economic development, fossil fuel consumption and population density in India, Pakistan and Bangladesh: A panel investigation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 18-31, January.
    26. Yildizbasi, Abdullah, 2021. "Blockchain and renewable energy: Integration challenges in circular economy era," Renewable Energy, Elsevier, vol. 176(C), pages 183-197.
    27. Anwar, Ahsan & Sharif, Arshian & Fatima, Saba & Ahmad, Paiman & Sinha, Avik & Khan, Syed Abdul Rehman & Jermsittiparsert, Kittisak, 2021. "The asymmetric effect of public private partnership investment on transport CO2 emission in China: Evidence from quantile ARDL approach," MPRA Paper 108160, University Library of Munich, Germany, revised 2021.
    28. Eric Evans Osei Opoku & Alex O. Acheampong & Janet Dzator & Nana Kwabena Kufuor, 2022. "Does environmental sustainability attract foreign investment? Evidence from developing countries," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3542-3573, November.
    29. Abbasi, Kashif Raza & Shahbaz, Muhammad & Zhang, Jinjun & Irfan, Muhammad & Alvarado, Rafael, 2022. "Analyze the environmental sustainability factors of China: The role of fossil fuel energy and renewable energy," Renewable Energy, Elsevier, vol. 187(C), pages 390-402.
    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. Yugang He, 2024. "E-commerce and foreign direct investment: pioneering a new era of trade strategies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    2. Yang, Shuangpeng & umar, Muhammad, 2022. "How globalization is reshaping the environmental quality in G7 economies in the presence of renewable energy initiatives?," Renewable Energy, Elsevier, vol. 193(C), pages 128-135.
    3. Zeng, Lijun & Wang, Jiafeng & Zhao, Laijun, 2022. "An inter-provincial tradable green certificate futures trading model under renewable portfolio standard policy," Energy, Elsevier, vol. 257(C).
    4. Namahoro, J.P. & Wu, Q. & Su, H., 2023. "Wind energy, industrial-economic development and CO2 emissions nexus: Do droughts matter?," Energy, Elsevier, vol. 278(PA).
    5. Lanre Ibrahim, Ridwan & Bello Ajide, Kazeem & Usman, Muhammad & Kousar, Rakhshanda, 2022. "Heterogeneous effects of renewable energy and structural change on environmental pollution in Africa: Do natural resources and environmental technologies reduce pressure on the environment?," Renewable Energy, Elsevier, vol. 200(C), pages 244-256.
    6. Jahanger, Atif & Hossain, Mohammad Razib & Usman, Muhammad & Chukwuma Onwe, Joshua, 2023. "Recent scenario and nexus between natural resource dependence, energy use and pollution cycles in BRICS region: Does the mediating role of human capital exist?," Resources Policy, Elsevier, vol. 81(C).
    7. Chien, FengSheng, 2022. "How renewable energy and non-renewable energy affect environmental excellence in N-11 economies?," Renewable Energy, Elsevier, vol. 196(C), pages 526-534.
    8. Tang, Juan & Jiang, Yanyan, 2024. "Natural resources-environment dilemma: The context of foreign direct investment and international trade," Resources Policy, Elsevier, vol. 89(C).
    9. Lee, Chi-Chuan & Zhang, Jian & Hou, Shanshuai, 2023. "The impact of regional renewable energy development on environmental sustainability in China," Resources Policy, Elsevier, vol. 80(C).
    10. 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).
    11. Bashir, Muhammad Adnan & Dengfeng, Zhao & Filipiak, Beata Zofia & Bilan, Yuriy & Vasa, László, 2023. "Role of economic complexity and technological innovation for ecological footprint in newly industrialized countries: Does geothermal energy consumption matter?," Renewable Energy, Elsevier, vol. 217(C).
    12. Andreoni, Valeria, 2022. "Drivers of coal consumption changes: A decomposition analysis for Chinese regions," Energy, Elsevier, vol. 242(C).
    13. Ling Luo & Yang Fu & Hui Li, 2023. "Do Urban Innovation Policies Reduce Carbon Emission? Empirical Evidence from Chinese Cities with DID," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    14. Liu, Yang & Dong, Xiucheng & Dong, Kangyin, 2023. "Pathway to prosperity? The impact of low-carbon energy transition on China's common prosperity," Energy Economics, Elsevier, vol. 124(C).
    15. Feihong Zheng & Yue Niu, 2023. "Environmental Decentralization, Resource Endowment and Urban Industrial Transformation and Upgrading: A Comparison of Resource-Based and Non-Resource-Based Cities in China," Sustainability, MDPI, vol. 15(13), pages 1-20, July.
    16. Xiao, Anran & Xu, Zeshui & Skare, Marinko & Xiao, JingLin & Qin, Yong, 2024. "Unlocking the potential of FinTech: A pathway to sustainable resource management in the EU," Resources Policy, Elsevier, vol. 98(C).
    17. Zhao, Xinlu & Adebayo, Tomiwa Sunday & Kong, Xianli & Al-Faryan, Mamdouh Abdulaziz Saleh, 2022. "Relating energy innovations and natural resources as determinants of environmental sustainability: The role of globalization in G7 countries," Resources Policy, Elsevier, vol. 79(C).
    18. Stephen Taiwo Onifade & Andrew Adewale Alola, 2022. "Energy transition and environmental quality prospects in leading emerging economies: The role of environmental‐related technological innovation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1766-1778, December.
    19. Liu, Yang & Dong, Kangyin & Wang, Jianda & Taghizadeh-Hesary, Farhad, 2023. "Towards sustainable development goals: Does common prosperity contradict carbon reduction?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 70-88.
    20. Olani Bekele Sakilu & Haibo Chen, 2024. "Realizing Carbon Neutrality in Top-Emitter Countries: Do Green Technology Innovation, Renewable Energy, Financial Development, and Environmental Tax Matters?," Sustainability, MDPI, vol. 17(1), pages 1-26, December.

    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:17:y:2025:i:5:p:1801-:d:1595872. 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.