Abstract
This study aims to explore the connection between the potential effects of energy consumption and technological innovation on economic growth in China from 1980 to 2018. The Non-Linear Autoregressive Distributive Lag (NARDL) econometric approach reveals an asymmetric connection between technological innovation, energy consumption, and economic growth in China from 1980 to 2018. The empirical results also reveal that a 1% decrease in energy consumption would imperatively decline economic growth by 12.5%. Moreover, a 1% upsurge in trademark applications improves economic growth by 8.2%. For the case of China, this study reveals that a large portion of the energy was used by families, which is regarded as a non-contributing element to the economy of China. This study suggests that the promotion and production of energy-efficient processes and products is necessary in order to make a more significant step toward sustainable development. The empirical findings also suggest that the Chinese government should regulate suitable policies aimed at promoting energy efficiency and the control of inefficient energy uses.
Highlights
The empirical literature has found that energy use is the main driving force for economic growth [1]
This study aims to explore the connection between the potential effects of energy consumption and technological innovation on economic growth in China from 1980 to 2018
Variables included energy use as a proxy that interpreted energy use (Eu) collected from the National Bureau of Statistics of China, GDP as a proxy for economic growth in China, the total number of resident patent applications (Pa), collected from the global economy, trademark applications (Ta), and the active economic population (Ea) rate (10,000 people) in the period of the study collected from the China Central Statistics Office
Summary
The empirical literature has found that energy use is the main driving force for economic growth [1]. Since economic systems depend on the consumption of energy, its depletion would hinder the growth of the economy [4]. A reduction in energy use can alter production, reducing the economically active population (Ea), which indirectly affects economic growth. Numerous previous studies have shown the existence of energy-saving techniques without slowing the speed of economic growth [7,8]. This argument contrasts with the growth hypothesis, which indicates that restrictive energy use policies are harmful to economic development [9]. Some experts claim that technological innovations can increase energy efficiency and
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