Urbanization and industrialization impact of CO2 emissions in China. (20th January 2018)

• Record Type: Journal Article
• Authors: Liu, Xuyi; Bae, Junghan
• Is Part Of: Journal of cleaner production. Volume 172(2018)
• Page Start: 178
• Page End: 186
• Publication Date: 2018-01-20
• Subjects: CO2 emissions -- Urbanization -- Industrialization -- Economic growth -- Energy intensity -- Share of renewable energy; 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.2017.10.156
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: This study investigates the causal linkage among CO2 emissions per capita, energy intensity, real GDP per capita, industrialization (share of industrial value added in GDP), urbanization (share of urban population in total population), and share of renewable energy consumption in China over the period from 1970 to 2015. We employ autoregressive distributed lag (ARDL) technology to test the co-integration and short- and long-run estimates, and apply the vector error correction model (VECM) to analyze the directional causality among the time series data. The estimates of long-run parameters indicate that 1% augments of energy intensity, real GDP, industrialization, and urbanization increase CO2 emissions by 1.1%, 0.6%, 0.3%, and 1.0%, respectively. Long-run feedback Granger causalities exist among emissions, real GDP, and industrialization. Thus, our main policy suggestions are as follows: (i) to encourage green and sustainable urbanization, as it increases economic growth but not at the expense of environmental degradation; (ii) to strategically adjust and optimize the industrial structure; (iii) to improve the efficiency of energy use and technological innovation; and (iv) to increase the proportion of renewable energy in total energy consumption. Highlights: Variables except share of renewable energy play positive roles in emissions by ARDL. Long-run bidirectional causality between emissions and industrialization is found. Green and sustainable urbanization should be encouraged by government. Share of renewable energy should be improved in total energy consumption.