Does Economic Growth Stimulate Energy Consumption? The Role of Human Capital and R&D Expenditures in China

Muhammad Shahbaz, Malin Song, Shabbir Ahmad and Xuan Vinh Vo

MPRA Paper from University Library of Munich, Germany

Abstract: This study evaluates the link between human capital, energy consumption, and economic growth using data for the Chinese economy from 1971 to 2018. To test the cointegration relationship between disaggregated energy, human capital, and economic growth, a bounds testing approach is applied by taking the structural breaks into consideration. The estimated results confirm that these variables are integrated. Further, human capital accumulation has a statistically significant negative effect on all types of energy consumption. We note a positive link between energy usage and economic growth. However, a significant negative relationship is found between R&D expenditures, and energy consumption. The results also show a one-way causal effect of human capital on all forms of energy consumption. However, the association between economic growth, dirty energy usage, and clean energy usage remains interdependent, indicating a feedback effect. Further, energy consumption and R&D exhibit bidirectional causal relationship.

Keywords: Human Capital; Energy Consumption; China (search for similar items in EconPapers)
JEL-codes: Q2 (search for similar items in EconPapers)
Date: 2021-10-13, Revised 2021-10-22
New Economics Papers: this item is included in nep-ene, nep-tid and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Does economic growth stimulate energy consumption? The role of human capital and R&D expenditures in China (2022)
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