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The symmetric and asymmetric effects of renewable energy and water investment on environmental quality: evidence for the Chinese economy

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  • Mehdi Ben Jebli

    (University of Jendouba
    Campus University of Manouba)

  • Imen Gam

    (Campus University of Manouba
    University of Sfax)

Abstract

This study aims at exploring the role of water investment, agricultural land expansion, economic growth, and renewable energy in improving environmental quality (CO2 emissions) in China under the linear and nonlinear Autoregressive Distributed Lags (ARDL and the NARDL) methods covering the 1994–2019 period. The motivation for choosing China for empirical research is that optimum control of pollution in China can improve global environmental quality and combat global warming. The empirical results provide strong evidence for a cointegration relationship between the variables considered. Our study contributes to the existing literature by rejecting two hypotheses. First, we demonstrate from the literature that water investments in China can improve environmental quality. Second, our findings suggest that agricultural land expansion can help reduce greenhouse gas emissions. Our findings suggest that Chinese policymakers should further promote "green agriculture" and encourage the use of renewable energy through "taxes" to control polluting activities and "subsidies," establishing a "punishment and relief" strategy.

Suggested Citation

  • Mehdi Ben Jebli & Imen Gam, 2024. "The symmetric and asymmetric effects of renewable energy and water investment on environmental quality: evidence for the Chinese economy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 27739-27763, November.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:11:d:10.1007_s10668-023-03783-z
    DOI: 10.1007/s10668-023-03783-z
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    Keywords

    CO2 emissions; Renewable energy; Asymmetric ARDL; China;
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