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Effect of income and energy efficiency on natural capital demand
Shuhong Wang1,2, Suisui Chen1, Hongyan Zhang3
1School of Economics, Ocean University of China, Qingdao, 266100, China.
Abstract:
This study explores the driving forces of natural capital demand to help solve the new problems faced by China's regional sustainable development and formulate relevant policies on resource utilization, ecological compensation, and energy structural adjustment. We find a significant and inverted U-shaped relationship between income and natural capital demand. Both economic development and environmental protection can only be improved beyond the inflection point. Energy efficiency is also closely related to natural capital demand, and its continuous improvement can slow down the rise in natural capital demand. This research provides important implications for the spread and allocation of natural capital regionally. It recommends the national allocation of natural capital, formulation of differentiated environmental policies, and improvement in energy efficiency by improving scale, technology, and structure.
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