The Relationship between Economic Growth and Disaster Losses-Based on Linear and Nonlinear ARDL Model in China

Dingbang Cang (), Yiming Xu and Guiqiang Wang
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Dingbang Cang: North China Institute of Science and Technology, Sanhe 065201, China
Yiming Xu: North China Institute of Science and Technology, Sanhe 065201, China
Guiqiang Wang: School of Management, China University of Mining and Technology, Xuzhou 221116, China

Sustainability, 2022, vol. 14, issue 15, 1-11

Abstract: China is a country with one of the most disaster losses in the world. In this paper, a comprehensive evaluation of disaster losses in China was carried out based on the TOPSIS model of entropy weight. Then, linear and nonlinear models were established, and the relationship between economic growth and disaster losses was analyzed using the ARDL model, which included energy consumption and fixed asset investments. The results showed a significant inverted U-shaped relationship between disaster losses and economic growth; that is, smaller disaster losses helped increase economic growth, but larger disaster losses inhibited economic growth. In the long run, the increase in fossil energy consumption and new energy consumption promoted economic growth, but the role of fossil energy was more significant than that of new energy. We also found that fixed asset investment had a negative effect on economic growth.

Keywords: economic growth; disaster losses; energy consumption; investment in fixed assets; TOPSIS evaluation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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