https://doi.org/10.36719/2706-6185/44/173-187
Abdelkerim Debbar
University of El Oued
https://orcid.org/0009-0002-3477-3610
debbar-abdelkrim@univ-eloued.dz
Rahima Bousbia Salah
University ofd El Oued
https://orcid.org/0000-0002-2909-7884
bousbia-rahima@univ-eloued.dz
Adel Gherbi
University of El Oued
https://orcid.org/0000-0003-3668-6430
gherbi-adel@univ-eloued.dz
Transition Towards a Green Economy in China do Consumption of
Renewable Energy Effects on it
Abstract
This paper examines the impact of renewable energy consumption on China’s transition toward a green economy and evaluates whether it has contributed to reducing CO2 emissions between 1990 and 2018 using a random error correction model (VECM). As the world faces growing environmental challenges, understanding the relationship between renewable energy use and carbon emissions is crucial, particularly for China, the largest global emitter. The study’s findings indicate that all chains are stable at the second level, ensuring the reliability of the data used. Additionally, the analysis of the causal relationship using the Granger causality test reveals a strong and significant connection between renewable energy consumption and CO2 emissions in China during the study period, highlighting the role of renewable energy in shaping emission trends. The research further identifies a co-complementarity between CO2 emissions and renewable energy consumption, attributed to the presence of a significant linear relationship between the dependent and explanatory variables, suggesting that increased renewable energy use correlates with changes in emission levels. This result underscores the importance of renewable energy as a critical component of China’s efforts to mitigate climate change. Moreover, diagnostic tests confirm that the model is both economically and statistically robust, reinforcing its credibility for policy evaluation. These findings contribute to the broader discussion on sustainable energy transitions by providing empirical evidence on the effectiveness of renewable energy in reducing emissions, offering valuable insights for policymakers aiming to enhance energy sustainability and environmental protection in high- energy-consuming economies like China.
Keywords: Renewable energies, Greener economy, Gas CO2 emission, VECM