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Analyzing the Asymmetric Effect of Renewable Energy Consumption on Environment in STIRPAT-Kaya-EKC Framework: A NARDL
Youxue Jiang1, Zakia Batool2, Syed Muhammad Faraz Raza3,4
1Jiangsu Vocational Institute of Commerce, Nanjing 211168, China.
Abstract:
This study aims to analyze the asymmetric relation between renewable energy consumption and CO2 emissions in China using the STIRPAT-Kaya-EKC framework. To delve into the asymmetric effect of renewable energy consumption on the environment, the non-linear ARDL model is used. The results of this study confirm the asymmetric impact of renewable energy on the environment in the long run as well as in the short run. However, the negative shocks to renewable energy have a greater detrimental influence on the environment than the benign effect due to the positive shock to renewable energy. Population growth affects the environment in the short run, whereas technology only affects environment quality in the long run. Moreover, the study supports the EKC theory in China. This research emphasizes that the administration can improve the economy's lifespan by allocating substantial funds to establish legislation to maintain a clean environment by subsidizing renewable energy infrastructure and research and innovations for low-carbon projects.
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