The Interplay of Green Technology and Energy Consumption: A Study of China’s Carbon Neutrality and Sustainable Digital Economy

Isbat Alam, Shichang Lu, Muddassar Sarfraz and Muhammad Mohsin ()
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Isbat Alam: College of Business Administration, Liaoning Technical University, Huludao 125105, China
Shichang Lu: College of Business Administration, Liaoning Technical University, Huludao 125105, China
Muhammad Mohsin: School of Business, Hunan University of Humanities, Science and Technology, Loudi 417000, China

Energies, 2023, vol. 16, issue 17, 1-18

Abstract: In light of the carbon neutrality goals set post-Paris Climate Conference (COP21), this study delves into the relationship between green technology innovations, energy consumption, and CO 2 emissions in China, spanning the period of 1990 to 2021. The objective of this paper is to creatively present the idea of a low-carbon digital economy from the viewpoint of digital technology. Utilizing the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model, we scrutinize this relationship, employing unit-root testing to verify the integrative attributes of the variables, inclusive of structural break data. Further analysis using the bootstrap Autoregressive Distributed Lag (ARDL) bound testing method corroborates the relationship between these key variables. The study reveals unidirectional co-integration over time among green technology innovations, renewable and non-renewable energy, per capita income, population, and CO 2 emissions as per the Granger causality test. Interestingly, our findings suggest that while green technology innovation, per capita income, and renewable energy contribute to the reduction of CO 2 emissions, non-renewable energy consumption and population growth exacerbate them. These insights offer valuable guidance for policymakers in formulating comprehensive strategies to enhance environmental quality through the promotion of renewable energy and green technology innovations, with a specific emphasis on the Chinese context.

Keywords: energy consumption; green technology; CO 2 emissions; BARDL; China (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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