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

Abstract

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).

Keywords

• Energy consumption
• Economic growth
• Carbon emission
• Yin–Yang cognition