Analyzing energy innovation-emissions nexus in China: A novel dynamic simulation method. (1st April 2022)

• Record Type: Journal Article
• Authors: Danish, ; Ulucak, Recep
• Is Part Of: Energy. Volume 244(2022)Part B
• Publication Date: 2022-04-01
• Subjects: Energy innovation -- Environmental Kuznets curve -- Pollution haven hypotheses -- Dynamic ARDL Method; Power resources -- Periodicals; Power (Mechanics) -- Periodicals; Energy consumption -- Periodicals; 333.7905
• DOI: 10.1016/j.energy.2021.123010
• Languages: English
• ISSNs: 0360-5442

Abstract

Abstract: Rising climate change and global warming issues highlight the potential role of research and development in the energy sector. By considering this critical role, the current study outlines the impact of energy innovation on carbon dioxide (CO2 ) emissions for China. For this, the study produces empirical outputs by conducting a newly developed, dynamic autoregressive distributed lag simulation method. The study discloses robust findings that point out a mitigating effect of energy innovation on carbon dioxide emissions and validate the Environmental Kuznets Curve hypothesis. Empirical results highlight the significant role of energy innovation to decrease environmental pollution and inspire policymakers to increase the spending of the public budget on energy research development and demonstration as well as supporting innovative attempts and enterprises. On the other hand, empirical findings do not provide concrete evidence to support the pollution haven hypothesis in China. Highlights: Follows an EKC model structure extended with control variables. Investigates the role of energy innovation in reducing pollution. Performs a novel dynamic simulation method. Obtains an inverted U-shaped relationship for the nexus income-pollution. Confirms the significant role of innovation to decrease pollution.