Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution
We examine the relationship between Chinese aggregate production and consumption of three main energy commodities: coal, oil and renewable energy. Both autoregressive distributed lag (ARDL) and vector error correction modeling (VECM) show that Chinese growth is led by all three energy sources. Econo...
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| Format: | Journal Article |
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Elsevier BV * North-Holland
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/31279 |
| _version_ | 1848753334016540672 |
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| author | Bloch, Harry Rafiq, S. Salim, Ruhul |
| author_facet | Bloch, Harry Rafiq, S. Salim, Ruhul |
| author_sort | Bloch, Harry |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We examine the relationship between Chinese aggregate production and consumption of three main energy commodities: coal, oil and renewable energy. Both autoregressive distributed lag (ARDL) and vector error correction modeling (VECM) show that Chinese growth is led by all three energy sources. Economic growth also causes coal, oil and renewables consumption, but with negative own-price effects for coal and oil and a strong possibility of fuel substitution through positive cross-price effects. The results further show coal consumption causing pollution, while renewable energy consumption reduces emissions. No significant causation on emissions is found for oil. Hence, making coal both absolutely and relatively expensive compared to oil and renewable energy encourages shifting from coal to oil and renewable energy, thereby improving economic and environmental sustainability. |
| first_indexed | 2025-11-14T08:22:51Z |
| format | Journal Article |
| id | curtin-20.500.11937-31279 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:22:51Z |
| publishDate | 2015 |
| publisher | Elsevier BV * North-Holland |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-312792017-11-03T01:15:44Z Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution Bloch, Harry Rafiq, S. Salim, Ruhul Error correction model Environmental sustainability Fuel substitution ARDL Pollution China We examine the relationship between Chinese aggregate production and consumption of three main energy commodities: coal, oil and renewable energy. Both autoregressive distributed lag (ARDL) and vector error correction modeling (VECM) show that Chinese growth is led by all three energy sources. Economic growth also causes coal, oil and renewables consumption, but with negative own-price effects for coal and oil and a strong possibility of fuel substitution through positive cross-price effects. The results further show coal consumption causing pollution, while renewable energy consumption reduces emissions. No significant causation on emissions is found for oil. Hence, making coal both absolutely and relatively expensive compared to oil and renewable energy encourages shifting from coal to oil and renewable energy, thereby improving economic and environmental sustainability. 2015 Journal Article http://hdl.handle.net/20.500.11937/31279 10.1016/j.econmod.2014.09.017 Elsevier BV * North-Holland fulltext |
| spellingShingle | Error correction model Environmental sustainability Fuel substitution ARDL Pollution China Bloch, Harry Rafiq, S. Salim, Ruhul Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution |
| title | Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution |
| title_full | Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution |
| title_fullStr | Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution |
| title_full_unstemmed | Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution |
| title_short | Economic Growth with Coal, Oil and Renewable Energy Consumption in China: Prospects for Fuel Substitution |
| title_sort | economic growth with coal, oil and renewable energy consumption in china: prospects for fuel substitution |
| topic | Error correction model Environmental sustainability Fuel substitution ARDL Pollution China |
| url | http://hdl.handle.net/20.500.11937/31279 |