Electricity generation from renewable and non-renewable energy sources in China: The role of environmental policy stringency, FDI, and economic growth

Chunxun Xia, Daniel Balsalobre-Lorente and Qasim Raza Syed

Energy, 2025, vol. 318, issue C

Abstract: The wave of industrialization and globalization comes with increased energy demand. To curb rising emissions levels in China, energy production from renewable sources (EPR) is imperative. Therefore, this study assesses the effects of environmental policy stringency (EPS), economic growth, and FDI on EPR and non-renewable sources (EPNR) in China from 1989 to 2022 using the novel wavelet quantile correlation (WQC) approach. The WQC shows different directions and magnitudes of the relationship between the variables across all quantile distributions. The results reveal that EPS tames EPNR over the short run but increases it over the medium and long-run periods. FDI increases EPNR over the short run, with opposite impacts in the medium- and long-run periods.

Keywords: Environmental policy stringency; Renewable electricity generation; SDG 13; SDG 7; Wavelet quantile correlation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:318:y:2025:i:c:s0360544225003378

DOI: 10.1016/j.energy.2025.134695

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