NEXUS OF CLIMATE CONDITIONS WITH ENERGY ENVIRONMENTAL GROWTH INTEGRATION: HOW DO ECONOMIC INDICATORS MATTER?

Abstract

There has been a change in economic research from focusing on economic growth to focusing on sustainable development when it comes to economic development. This research aims to examine the link between China’s socioeconomic progress and the degradation of the environment. Between 1995 and 2018, the information in this study was collected. We looked at factors including the percentage of tourism in total exports, total and renewable energy consumption and GDP per capita when calculating the emissions they have on the environment. CO2 emission shows long-term causation, but the feedback causality hypothesis holds in the short term between the variables of concern. There is a one-way correlation between GDP, CO2 emissions and the use of renewable energy; access to better water, sanitation and electricity; access to renewable energy; and access to improved water, sanitation and electricity to CO2 emissions. It was shown that CO2 emissions, GDP and energy usage had a positive long-term correlation. In contrast, tourism, renewable energy and access to better water and sanitation all had a negative long-term correlation. GDP’s contribution to future CO2 emission fluctuations ranges from 7% to 25%, with energy use at 7%–15%, renewable energy use at 1%–4.5% and tourism at 5.8%–10%. Meanwhile, access to better water, sanitation and electricity is at 9%, 1.13% and 3%, respectively, according to the variance decomposition analysis. Sustainable development in China necessitates a strong policy to adopt renewable energy sources, sustainable tourism growth and improved access to safe drinking water, sanitary facilities and power.