Energy consumption in China and underlying factors in a changing landscape: Empirical evidence since the reform period

Khalid Ahmed, Mita Bhattacharya, Ahmar Qazi () and Wei Long

Renewable and Sustainable Energy Reviews, 2016, vol. 58, issue C, 224-234

Abstract: In recent decades, the phenomenal growth in the Chinese economy has created increasing energy consumption. This is the first study analysing energy consumption in China considering economic, social and political dimensions of globalisation along with the effects from trade and financial sectors. The time period covers the full trajectory since the start of economic reform until recent times. In this respect, we use the Konjunkturforschungsstelle (KOF) globalisation index to explore the dynamic link between economic growth, financial development, trade and various dimensions of globalisation and energy consumption. Modern time series econometric techniques are used in establishing stationarity, long-run dynamics and causality of the series. The findings suggest that globalisation decreases energy consumption in the short run but increases it in the long run. However, the effect of financial development on energy consumption in China is opposite to the globalisation effect on energy consumption. Granger causality reveals a feedback effect between economic globalisation and financial development; globalisation in China can only reduce energy consumption if China develops its financial sector to a greater extent. In future, China should invest in its financial sector and low-carbon energy alternatives to achieve sustainable development. Prevention of energy shortfalls and cleaner environment would assist in bridging the gap both from social and political aspects to ensure China benefits significantly with high economic growth in this Asian century.

Keywords: Financial development; Globalisation; Energy; China (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S136403211501597X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:58:y:2016:i:c:p:224-234

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2015.12.214

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().