The effects of energy on investment, human health, environment and economic growth: empirical evidence from China
2019
Azam, Muhammad | Khan, Abdul Qayyum | Ozturk, Ilhan
The role of energy cannot be passed over in the process of economic growth and development in any economy. China consumes colossal quantity of energy; thus, the central objectives of this study is to empirically evaluate the linkages among energy use, environment by CO₂ emissions, human health by health expenditures, Foreign Direct Investment (FDI) inflows, and real GDP per capita used for economic growth over the period of 1995–2016 for China. The nature of the data directed to employ the Canonical cointegrating regression (CCR) method for unknown parameter estimation. Four equations have estimated namely for FDI, health, environment, and economic growth. The result for China during the period under the study reveals that energy consumption has significant positive impact on FDI, health, environment, and economic growth. The study results suggest that policy makers need to chalk out effective policy for effective utilization of energy so as to encourage permissible economic growth and development in China.
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