Achieving sustainability and energy efficiency goals: Assessing the impact of hydroelectric and renewable electricity generation on carbon dioxide emission in China. (August 2021)

• Record Type: Journal Article
• Authors: Xiaosan, Zhang; Qingquan, Jiang; Shoukat Iqbal, Khattak; Manzoor, Ahmad; Zia Ur, Rahman
• Is Part Of: Energy policy. Volume 155(2021)
• Publication Date: 2021-08
• Subjects: Renewable electricity generation -- Hydroelectric generation -- Carbon dioxide emissions -- Green innovation -- FDI -- China; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2021.112332
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: This study examines the relationship between total renewable electricity generation, total hydroelectric generation, and carbon dioxide emissions (CO2 e) for China. The autoregressive distributed lag (ARDL) model showed that renewable electricity generation, hydroelectric generation, and green innovation decreased CO2 e in China from 1990 to 2018, whereas gross domestic product per capita and foreign direct investment increased CO2 e. Moreover, the Granger-causality test results are as follows. First, a two-way causal flow from CO2 e to foreign direct investment and CO2 e to gross domestic product per capita confirmed the feedback hypothesis. Second, a one-way causal flow from hydroelectric and renewable electricity generation to gross domestic product per capita supported the energy-led growth hypothesis. Third, the causality test reflected a one-way causal flow from renewable electricity generation to foreign direct investment and hydroelectric generation to foreign direct investment and renewable electricity generation. This study asserts the need for government to introduce taxes and other incentives for solar, wind, and hydropower-related projects. The paper also calls for designing policies to improve the market attractiveness of hydroelectric generation projects through special investment programs. Highlights: Hydel and renewable electricity generation effects on CO2 emissions were examined for China. A rise in hydel and renewable electricity generation mitigated CO2 emissions. An upsurge in green innovation mitigated CO2 emissions. Gross domestic product and foreign direct investment increased CO2 emissions. The study supported feedback and the energy-led growth hypothesis.