Investment in energy resources, natural resources and environment: Evidence from China

• Published in: Resources policy Vol. 76; p. 102707
• Main Authors: Zhang, Xiaofeng, Chen, Xinnan, Fang, Zheng, Zhu, Yujuan, Liang, Jiabo
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.06.2022; Elsevier Science Ltd
• Subjects: Adoption of innovations; Carbon; COVID-19; Deterioration; Ecosystems; Efficiency; Emissions; Empirical analysis; Energy consumption; Energy efficiency; Energy investment; Energy resources; Energy sources; GDP; Gross Domestic Product; Industrial production; Investments; Natural resources; Rents; Sustainability; Sustainable environment; Time series; China; Natural resources; Industrial production; Energy investment; Sustainable environment; Emissions
• ISSN: 0301-4207; 1873-7641
• DOI: 10.1016/j.resourpol.2022.102707

Energy resource investment has been critical for a sustainable economy. Its significance, however, intensified, notably post COVID-19. The function of energy efficiency in ensuring a sustainable environment has been undervalued. However, unlike previous studies, this study aims to analyze the role of energy efficiency, industrial production and investment in energy on carbon emissions for China employing data from 1990 to 2020. The study uses updated time series econometric methods such as Narayan and Pop unit root test, Bayer-Hanck cointegration method, fully modified, dynamic and canonical cointegration analysis. The results confirmed cointegrating relationship among variables via Bayer-Hanck cointegration approach. The study also revealed that energy efficiency and carbon emissions had an inverse connection. Meanwhile, China's industrial production, energy investment, and gross domestic product have all been found to increase emissions. Consequently, natural resource rents harm the ecosystem. Based on the empirical findings, this study recommends the adoption of energy-efficient technologies and the use of energy from efficient sources in order to assist China to lessen environmental deterioration. •The role of investment in energy resources is investigated for China.•The study uses novel time series econometric approaches.•The study found that investment in energy resources deteriorates the environment.•However, Efficiency in energy resources achieve green environment.•Natural resources rents, Income and industrial production degrade the environment.