Balancing progress and preservation: analyzing the role of technological innovation in mitigating environmental degradation caused by energy consumption in China

Xiuyun Yang, Muhammad Nouman Shafiq, Arshian Sharif, Seemab Gillani and Xubin Zeng

Economic Analysis and Policy, 2024, vol. 84, issue C, 391-409

Abstract: China is undergoing a significant transition as it modernizes its energy consumption system and changes its approach to economic development. However, this transformation comes at the expense of environmental quality. The utilization of technological innovation has emerged as a significant catalyst for China's pursuit of environmentally conscious and sustainable development. Accordingly, this study utilizes panel data from 30 Chinese provinces spanning the years 1997–2021. The research employs the MMQR and BSQR to conduct an empirical analysis to find the influence of energy consumption (EC) and technological innovation (TI) on environmental degradation (ED). The findings of the research indicate that EC is a prominent manifestation of ED, while TI contributes negatively to ED. The inclusion of an interaction term suggests that the relationship between TI and ED can be influenced by the extent to which energy conservation and emission reduction are improved. The study's conclusion revealed that economic growth, population, and industrial structure are positively associated with CO2 emissions in China. This study offers a set of recommendations for policymakers to formulate policies related to environmental quality.

Keywords: CO2 emissions; Energy consumption; MMQR; Technological innovation (search for similar items in EconPapers)
JEL-codes: Q4 Q53 Q55 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:84:y:2024:i:c:p:391-409

DOI: 10.1016/j.eap.2024.09.001

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