Energy Strategy Reviews (Nov 2024)

Evaluating the influence of environmental regulations on green economic growth in China: A focus on renewable energy and energy efficiency guidelines

  • Lu Chen,
  • Umriya Kenjayeva,
  • Guanwei Mu,
  • Nadeem Iqbal,
  • Fu Chin

Journal volume & issue
Vol. 56
p. 101544

Abstract

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China's status as the world's largest energy consumer highlights its pivotal role in global energy consumption and the urgency of enhancing its energy efficiency and renewable energy development. This study evaluates the influence of environmental regulations on green economic growth in China, with a focus on renewable energy and energy efficiency, from 2000 to 2023 across 30 provinces. Using the Metafrontier-Global-SBM super-efficient DEA model, the research measures green economic development through the lens of energy efficiency. An enhanced fuzzy comprehensive assessment gauges the stringency of environmental regulations. To explore non-linear impacts, regional spillover, and feedback effects, a spatial econometric model was applied. The results reveal a U-shaped non-linear relationship between environmental regulations and green economic growth, with significant spatial feedback and regional spillover effects. Environmental regulations are also shown to have a substantial positive influence on the development of renewable energy, a critical driver of green economic growth. Policy implications suggest that strengthening environmental regulations could accelerate renewable energy adoption and foster sustainable economic growth across regions in China.

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