The effects of energy price, technology, and disaster shocks on China's Energy-Environment-Economy system. (10th January 2019)

• Record Type: Journal Article
• Authors: Zhang, Shangfeng; Hu, Tingting; Li, Jianbo; Cheng, Can; Song, Malin; Xu, Bing; Baležentis, Tomas
• Is Part Of: Journal of cleaner production. Volume 207(2019)
• Page Start: 204
• Page End: 213
• Publication Date: 2019-01-10
• Subjects: Energy-environment-economy systems -- Low-carbon environment -- Dynamic stochastic general equilibrium model -- Bayesian estimation; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2018.09.256
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: This paper constructs a dynamic stochastic general equilibrium (DSGE) model to analyze the effects of energy price, technology, and disaster shocks on China's Energy-Environment-Economy (3E) system. It also studies stylized facts, as well as co-integration and error correction dynamic analyses, of this system. The disaster shock is modeled as a two-state Markov switching process. The results show that both technology and energy price shocks increase the ratio of environmental investment to GDP. The improvement in technology and rising energy prices helps to reduce CO2 pollution, and improve economic restructuring. Among the three kinds of shocks, technology shock is the most important. The robustness of the model is tested through statistical methods.