Are energy consumption, population density and exports causing environmental damage in China? Autoregressive distributed lag and Vector Error Correction Model approaches

Rahman, Mohammad Mafizur and Vu, Xuan-Binh (Benjamin) ORCID: https://orcid.org/0000-0003-0238-002X (2021) Are energy consumption, population density and exports causing environmental damage in China? Autoregressive distributed lag and Vector Error Correction Model approaches. Sustainability, 13:3749. pp. 1-19.

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Abstract

This paper investigates whether energy consumption, population density, and exports are the main factors causing environmental damage in China. Using annual data from 1971–2018, unit root tests are applied for the stationarity analyses, and Autoregressive Distributed Lag (ARDL) bounds tests are used for the long-run relationships between the variables. A Vector Error Correction Model (VECM) Granger approach is employed to examine the causal relationships amongst the variables. Our findings show that the selected variables are cointegrated, and that energy consumption and economic growth are identified as the main reasons for CO2 emissions in both the short-run and long-run. In contrast, exports reduce CO2 emissions in the long-run. Short-run unidirectional Granger causality is found from economic growth to energy consumption, CO2 emissions and exports, and from CO2 emissions to energy consumption and exports. Moreover, long-run causal links exist between CO2 emissions and exports. Five policy recommendations are made following the obtained results.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/4.0/).
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 06 Apr 2021 04:37
Last Modified: 06 Apr 2021 05:38
Uncontrolled Keywords: CO2 emissions; energy consumption; population density; exports; energy economics; China
Fields of Research (2008): 05 Environmental Sciences > 0502 Environmental Science and Management > 050204 Environmental Impact Assessment
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Fields of Research (2020): 38 ECONOMICS > 3802 Econometrics > 380205 Time-series analysis
41 ENVIRONMENTAL SCIENCES > 4102 Ecological applications > 410299 Ecological applications not elsewhere classified
Socio-Economic Objectives (2008): D Environment > 96 Environment > 9601 Air Quality > 960199 Air Quality not elsewhere classified
Socio-Economic Objectives (2020): 15 ECONOMIC FRAMEWORK > 1599 Other economic framework > 159902 Ecological economics
Identification Number or DOI: https://doi.org/10.3390/su13073749
URI: http://eprints.usq.edu.au/id/eprint/41664

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