Interactions among electricity consumption, disposable income, wastewater discharge, and economic growth: Evidence from megacities in China from 1995 to 2018

• Published in: Energy (Oxford) Vol. 260; p. 124910
• Main Authors: Ruan, Fang-Li, Yan, Liang
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.12.2022
• Subjects: Disposable income; Economic growth; Electricity consumption; Interactions; Megacities in China1; Wastewater discharge; WW; Megacities in China1; Economic growth; DI; Electricity consumption; Wastewater discharge; GP; Interactions; Disposable income; ELC
• ISSN: 0360-5442
• DOI: 10.1016/j.energy.2022.124910

The 2030 Agenda for Sustainable Development clarifies Goal 11 to make cities sustainable. Understanding the interacting relationships is the key to effective policies and addressing sustainable urban development. This paper aims to expand the research on the interactions between electricity consumption, disposable income, wastewater discharge, and economic growth. We apply the fully modified ordinary least square (FMOLS) and vector error correction model (VECM) in a panel of 14 Chinese megacities from 1995 to 2018. The main conclusions are as follows: (1) The decrease in efficiency of electricity consumption in these cities will reduce average disposable income and increase the intensity of wastewater discharge; (2) In turn, the increase of wastewater discharge intensity will also reduce the power efficiency; (3) The development of these cities is still at the cost of polluting the water environment; (4) There is a sign of decoupling of economic growth and electricity consumption in these cities; (5) The Environmental Kuznets Curve can be established in these cities for industrial wastewater discharge. Accordingly, we propose policy implications in avoiding negative interactions that hinder sustainable development. •Apply panel FMOLS and VECM in 14 Chinese megacities over 1995–2018.•Electricity efficiency and wastewater discharge intensity have a negative impact on each other.•The decrease in electricity efficiency will reduce disposable income.•There exists water-pollution type development.•There exists a sign of decoupling between electricity consumption and economic growth.