Exploring the energy-economy-environment paradox through Yin-Yang harmony cognition

Adopting a symbiotic perspective, this study aimed to examine the paradoxical interrelationship of the energy-economy-environment nexus through the novel lens of Yin-Yang cognitive harmony. With a broad sample of countries (6 African lions, 5 Asian tigers, 3 NAFTA countries, and 10 top European Union economies), we applied the cointegration and fully modified ordinary least squares techniques to evaluate the short- and long-term relationships between energy consumption, economic growth and carbon dioxide (CO₂) emissions for the period 1980-2012. The results were heterogeneous across countries, but a curvilinear (inverted U-shaped) relationship between total economic growth and CO₂ emissions in conformity with the environmental Kuznets curve was confirmed in many cases. However, there was no evidence that economic growth resulting from energy consumption has been responsible for CO₂ reduction, which suggests a 'trilemma' - that is, a challenge in balancing energy production, economic growth and environmental degradation. From a behavioural economic perspective, this paper draws on the Kuznets hypothesis and Jevon's paradox by adopting a paradoxical frame to characterise the complex energy-growth-environment interaction as a balanced, symbiotic coexistence. It thus provides novel insights into the energy-growth-environment trilemma through an unconventional perspective based on Yin-Yang cognitive harmony (Fig. 1, see the Appendix).