Linking biomass energy and CO2 emissions in China using dynamic Autoregressive-Distributed Lag simulations

Abstract

Can biomass energy mitigate CO2 emissions in China? Given increasing environmental pollution and global warming, countries are switching to alternate energy sources that might help pollution reduction and mitigate climate change. In this scenario, biomass energy has received the attention of academic scholars and policy analyst alike. What role biomass energy can play in environmental pollution remains uncertain, so further investigation is necessary. To this end, this study explores the relationships of biomass energy and real income with CO2 emissions for China. Empirical evidence is based on the use of Jordan and Philips’ (2018) econometric tool, dynamic Autoregressive-Distributed Lag (DARDL) simulations, on data from 1982 to 2017. The results reveal a negative relationship between China’s biomass energy consumption and CO2 emissions, suggesting that biomass energy consumption is helpful in reducing pollution. Likewise, biomass energy production reduces carbon emissions and might be the best alternative to fossil fuels. Useful policy implications can be drawn related to biomass energy, especially in attaining sustainable development goals.