Examining the Effect of Privatization on Renewable Energy Consumption in the Digital Economy under Economic Patriotism: A Nonlinear Perspective

Jianjun Kang () and Delin Huang
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Jianjun Kang: School of Marxism, China University of Geosciences (Wuhan), Lumo Road 388, Wuhan 430074, China
Delin Huang: School of Public Administration, China University of Geosciences (Wuhan), Lumo Road 388, Wuhan 430074, China

Sustainability, 2023, vol. 15, issue 7, 1-13

Abstract: This study is an effort to investigate the asymmetric effects of privatization and the digital economy on renewable energy consumption. The nonlinear quantile autoregressive distributed lag (QARDL) technique is used to estimate short and long-run analysis. Findings of the nonlinear QARDL model posit that the long-run positive shock in privatization promotes renewable energy consumption by increasing renewable energy consumption, while the long-run negative shock in privatization demotes renewable energy consumption by reducing renewable energy consumption. In the short run, the positive shock of privatization does not significantly impact renewable energy consumption, while the negative shock of privatization reduces renewable energy consumption. Moreover, information and communications technology (ICT), economic development, and financial development increase renewable energy consumption in the long run; however, in the short-run only financial development helps increase renewable energy consumption. The Wald test confirms the asymmetric impact of privatization on renewable energy consumption only in the long run. Based on these results, policymakers should thus take into account both positive and negative shocks in privatization when developing policies to encourage pro-environmental behavior.

Keywords: privatization; renewable energy consumption; nonlinear QARDL (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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