Examining the Asymmetric Nexus between Energy Consumption, Technological Innovation, and Economic Growth; Does Energy Consumption and Technology Boost Economic Development?

Ayoub Zeraibi, Daniel Balsalobre-Lorente and Khurram Shehzad ()
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Ayoub Zeraibi: School of Economics and Finance, Xi’an Jiao tong University, Xi’an 710061, China
Daniel Balsalobre-Lorente: Department of Political Economy and Public Finance, Economics and Business Statistics and Economic Policy, University of Castilla-La Mancha, 50, 13001 Ciudad Real, Spain

Sustainability, 2020, vol. 12, issue 21, 1-17

Abstract: This study aims to explore the connection between the potential effects of energy consumption and technological innovation on economic growth in China from 1980 to 2018. The Non-Linear Autoregressive Distributive Lag (NARDL) econometric approach reveals an asymmetric connection between technological innovation, energy consumption, and economic growth in China from 1980 to 2018. The empirical results also reveal that a 1% decrease in energy consumption would imperatively decline economic growth by 12.5%. Moreover, a 1% upsurge in trademark applications improves economic growth by 8.2%. For the case of China, this study reveals that a large portion of the energy was used by families, which is regarded as a non-contributing element to the economy of China. This study suggests that the promotion and production of energy-efficient processes and products is necessary in order to make a more significant step toward sustainable development. The empirical findings also suggest that the Chinese government should regulate suitable policies aimed at promoting energy efficiency and the control of inefficient energy uses.

Keywords: economic development; energy consumption; resident patent; trademark applications; economic growth; NARDL asymmetric; economically active population (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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