Green economic recovery hindered by increased carbon intensity: Evidence from China

Abstract

This study looks into how growing carbon intensity affects China's usage of non-fossil fuels and green economic recovery. We use an experimental methodology to use information from China's Natural Resource Growth and Miscalculation Improvement Framework from 2011 to 2022. This study examines how carbon intensity affects China's efforts to support a green economic rebound. We also want to clarify how non-fossil energy might help reduce carbon emissions. We find that expanding the use of non-fossil fuels and the green economic recovery are both hampered by growing carbon intensity. In particular, we find that in years with higher carbon intensity, the growth rate of non-fossil energy use is much lower. Additionally, our findings demonstrate that rising carbon intensity causes energy efficiency and carbon emissions to decline. We discover that provinces with high carbon emissions are more severely affected by the detrimental effects of increased carbon intensity on the green economic recovery. Our findings imply that for China to achieve a green economic recovery and reduce carbon emissions, carbon intensity must be addressed. Increased carbon intensity can have negative effects, but they can be lessened by policies that encourage the use of non-fossil fuels and boost energy efficiency.