Sustainable development policies of renewable energy and technological innovation toward climate and sustainable development goals

Abstract

AbstractThis study seeks to investigate the possibility of achieving Chinese climate and sustainable development goals (SDGs) with technological innovations and renewable energy policies. Currently, China is ranked first in global emissions. Hence, we utilized Chinese data of 1996Q1 2018Q4 to investigate the policy implication of technological innovation and renewal energy towards its climate goals. Economic development, technology, energy and environmental policies are incorporated in our study for clear insight on the impact of technology and renewable energy on China's climate goals. We adopt different scientific approaches (structural break, bound method of co‐integration, autoregressive dynamic lag‐ARDL dynamics and granger causality test) for both quantitative and theoretical analyses. Our discussions and policy inference are based on the findings from ARDL and granger causality analyses. Findings from ARDL tests debunk the inverted U‐shape EKC hypothesis for China. Technological innovations and renewable energies are found impacting favorably on Chinese environment by reducing carbon emissions. Output derived from Causality supports the results from ARDL with nexus established amongst the selected instruments. From the findings, we conclude by advocating for policy to be framed on renewable energy sector through investment and technological boosting towards a SDG for China.