A study of energy investment and environmental sustainability nexus in China: a bootstrap replications analysis
2022
Lyu, Lu | Khan, Irfan | Zakari, Abdulrasheed | Abdurahman, Bilal
Environmental sustainability is increasing emphasis on global environmental concerns at the forefront of public policy debate. This paper investigates the relationship between energy investments and environmental sustainability in China from 1980 to 2018 while considering the moderating effect of international trade and economic growth under the environment Kuznets curve (EKC) framework. We apply advanced econometric modeling for empirical analysis. Our findings show that energy investment and economic growth are positive, while international trade is negatively associated with ecological footprints. Moreover, economic growth and energy investment deteriorate, while international trade improves environmental sustainability. This empirical evidence suggests the improvements in cleaner energy infrastructure with the participation of the private sector to promote clean energy investment. We argue that policymakers should ensure environmental provisions in the regional and bilateral trade agreements to harmonize the environmental regulations, and develop crucial trade and ecological policy indicators to monitor policy consistency.
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