An Empirical Research on the Relationship Between Renewable Energy Investment and Low Carbon Growth in China

Abstract

The aim of this paper is to investigate the relationship between renewable energy investment and economic growth in China for the period 1990-2018. The unit root test, co-integration test, vector error correction model, impulse response function analysis, and Granger causality test were employed by including intermittent variables namely foreign direct investment and carbon dioxide emissions. The empirical results indicate that there is a bi-directional long term causality between renewable energy investment and economic growth. This study implies that growing economy in China is propitious for the development of renewable energy sector which in turn helps to boost economic growth. Additionally, economic growth and foreign direct investment influence renewable energy investment in the short term. The outcome of causality test reveals a two-way Granger causal relationship from renewable energy investment to economic growth, and a one-way Granger causal relationship from foreign direct investment to renewable energy investment.

Renewable Energy, Economic Growth and Economic Development Nexus: A Bibliometric Analysis

“…According to [51], for these economies, the flow of foreign direct investment (FDI) and the development of the financial market are fundamental in promoting the consumption of renewable energies, in addition to reducing emissions and promoting economic growth. The BRICS economies were also investigated in isolation: Brazil was studied by [54][55][56], Russia by [57], China and India by [58] and China by several [59][60][61][62][63][64][65], and there were also investigations for Chinese provinces such as [66,67]. Moreover, Brazil, China and the USA were studied by [68], China and USA in [69], and China, USA, France and Japan by [70].…”

Yeşil Finansmanın Etkisi: Güneş Enerjisi Yatırımının Finansal Göstergelerinin Kıyaslanması

“…Cui ve ark. (2021) ise Çin'deki yenilenebilir enerjiye yönelik yatırımlar ile düşük karbonlu ekonomik büyüme arasındaki ilişkiyi ele alarak bu yatırımların ekonomik ve çevresel önemini göstermiştir [13].…”