Does trade policy uncertainty hurt renewable energy-related sustainable development goals in China?

Abstract

Trade policy uncertainty might hamper trade flow, including the trade of green and renewable energy technologies. Therefore, this study aims to examine the asymmetric effects of trade policy uncertainty (TPU) on renewable energy consumption (REC) in China. To calculate the short- and long-term relationships between REC, TPU, national income, carbon footprints, and financial development, we used the nonlinear QARDL technique. The estimates reveal that an upsurge in TPU hurts REC in the short and long run. Conversely, a stable trade policy or a reduction in TPU increases REC in the long run. In the short run, a fall in TPU exerts no influence on REC. The findings further imply that various factors, including GDP, CO2 emissions, and financial development, contribute to long-term improvements in REC in China, both in the short and long run.

Keywords

• Trade policy uncertainty
• Renewable energy consumption
• Sustainable development
• China