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A step towards green economic policy framework: role of renewable energy and climate risk for green economic recovery

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  • Lifang Guo

    (Fujian Jiangxia University)

  • Hewu Kuang

    (Guangdong University of Finance
    South China Normal University
    South China Agricultural University)

  • Zehua Ni

    (Beijing Institute of Technology)

Abstract

According to the World Bank, energy efficiency is a critical facilitator of most Sustainable Development Goals. Its contribution to CO2 emission reduction is astounding. Environmentalists have recently emphasized the essential need to determine energy efficiency causes. This research broadens the debate's horizons by proposing additional possible energy efficiency factors using data from the Chinese economy. From 1990 to 2020, we examined the influence of investment in renewable energy resources, financial inclusion, industrial production, and trade openness on China's energy efficiency and climate risk. Additionally, this study is added to the literature by examining the causal relationships between variables while considering the temporal dimension. The findings indicate that industrial production, financial inclusion, public R&D on renewable energy, and trade openness contribute significantly to China's energy efficiency and climate risk. All other factors, except industrial production, are positively associated with energy efficiency. The path of causality is established from energy efficiency and climate risk to financial inclusion, industrial production, renewable energy, public research and development budgets, and trade openness. According to the findings, changes in energy performance have frequency-changing impacts on all variables. Policymakers believe that the financial system must be strengthened since this will significantly influence renewable energy.

Suggested Citation

  • Lifang Guo & Hewu Kuang & Zehua Ni, 2023. "A step towards green economic policy framework: role of renewable energy and climate risk for green economic recovery," Economic Change and Restructuring, Springer, vol. 56(5), pages 3095-3115, October.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:5:d:10.1007_s10644-022-09437-w
    DOI: 10.1007/s10644-022-09437-w
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    References listed on IDEAS

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    Cited by:

    1. Wang, Xueyang & Sun, Xiumei & Ahmad, Mahmood & Chen, Jiawei, 2024. "Energy transition, ecological governance, globalization, and environmental sustainability: Insights from the top ten emitting countries," Energy, Elsevier, vol. 292(C).
    2. Chinmaya Behera & Ranjan Kumar Mohanty & Biswashree Tanaya Priyadarsini & Debasis Patnaik, 2024. "Nexus between CO2 emission, renewable energy, trade openness and foreign direct investment, and output volatility," Economic Change and Restructuring, Springer, vol. 57(5), pages 1-25, October.
    3. Azer Dilanchiev & Bobur Urinov & Sugra Humbatova & Gunay Panahova, 2024. "Catalyzing climate change mitigation: investigating the influence of renewable energy investments across BRICS," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-32, June.

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