Clarifying the relationship among clean energy consumption, haze pollution and economic growth–based on the empirical analysis of China's Yangtze River Delta Region

Abstract

At present, the frequent occurrence of haze in China has attracted extensive attention around the world. However, there are few researches based on simultaneous equation model to evaluate the relationship among clean energy consumption, haze pollution and economic growth. Whether the relationship among clean energy consumption, haze pollution and economic growth can be clarified correctly is the core issue to achieve the goal of both haze control and high-quality economic development. The innovation of this study is to further explore the interaction mechanism among the three variables, simultaneous equation model is used to analyze the relationship of clean energy development, haze pollution and economic growth of 27 cities in the central area of Yangtze River Delta from 2006 to 2016. The estimation results show that:(i) The development of clean energy has reduced regional haze pollution and the level of economic development significantly; (ii) During the study period of this paper, haze pollution has significantly increased the consumption of clean energy, but it has hindered the level of economic development seriously. (iii) The level of economic development has increased clean energy consumption at a 1% level of significance, while also exacerbated the degree of haze pollution. Moreover, as a core variable of this paper, coal consumption has restrained clean energy development and played a positive role in accelerating economic development and haze pollution reduction.