Cleaner Technology and Natural Resource Management: An Environmental Sustainability Perspective from China

Abstract

In economies, cleaner technology, increased demand for renewable energy, and more efficient use of natural resources contribute to meeting environmental sustainability targets. The Chinese economy is no exception in its attempts to conserve economic and natural resources via collaborative efforts to embrace cleaner technology, green energy sources, and resource conservation management to preserve resources for future generations. This research examines the influence of cleaner technologies, green energy sources, and natural resource management on reducing greenhouse gas emissions using quarterly data for the Chinese economy from 2000Q1 to 2020Q4. The findings demonstrate that increasing demand for green energy reduces greenhouse gas emissions, hence substantiating the premise of ‘green is clean’ energy development. Additionally, optimum resource usage enhances environmental quality, corroborating the ‘resource cleaner blessing’ hypothesis. The positive link between inward foreign direct investment and greenhouse gas emissions substantiates the ‘pollution haven’ concept, according to which inward foreign direct investment uses unsustainable technology in manufacturing processes, hence degrading air quality indicators. Inadequate access to clean cooking technology and increased population density has a detrimental effect on the country’s environmental sustainability agenda, which must be corrected via sustainable regulations. The causality estimates show the feedback relationship between renewable energy demand (and economic growth) and cleaner technology, between economic growth and green energy (and inbound foreign direct investment), and between population density and economic growth (and green energy). The Impulse Response function estimates suggested that economic growth and population density would likely increase GHG emissions. In contrast, cleaner technology, green energy demand, natural resource management, and inbound foreign direct investment would likely decrease greenhouse gas emissions for the next ten-year time period. The sustainability of the environment and natural resources in China is bolstered by developing cleaner technologies, a greater reliance on renewable energy sources, and better management of natural resources.