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Nexus among Energy Consumption, Economic Growth, Urbanization and Carbon Emissions: Heterogeneous Panel Evidence Considering China’s Regional Differences

Jingqi Sun (), Jing Shi (), Boyang Shen (), Shuqing Li () and Yuwei Wang ()
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Jingqi Sun: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Jing Shi: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Boyang Shen: Electrical Engineering Division, Department of Engineering, University of Cambridge, Cambridge CB3 0FA, UK
Shuqing Li: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yuwei Wang: School of Economics and Management, North China Electric Power University, Beijing 102206, China

Sustainability, 2018, vol. 10, issue 7, 1-16

Abstract: This article examines the relation among carbon emissions, energy consumption, economic growth and urbanization in four panels: national level, developed areas, medium developed areas, and underdeveloped areas, which fully considers the differences across Chinese provinces. Due to the heterogeneity among Chinese provincial panels, the heterogeneous panel analysis technique is used, which includes heterogeneous panel estimation based on dynamic ordinary least squares (DOLS) and fully modified least squares (FMOLS), and the heterogeneous panel Granger test based on Dumitrescu and Hurlin is also used. The empirical results indicate that there are long-term equilibrium relationships between carbon emissions, GDP, energy consumption structure and urbanization rate in the four panels. GDP and energy consumption structure had obvious impacts on carbon emissions in all panels, but the urbanization rate significantly affected carbon emissions only in the national and medium developed areas. The heterogeneous Granger causality test reveals that the relationship between carbon emissions and various influencing factors in different regions varies. Finally, according to the empirical research results, policy implications of reducing carbon emissions in different regions were proposed.

Keywords: urbanization level; carbon emissions; energy consumption structure; heterogeneous panel analysis; regional differences (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2018
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