Research on the Path of Energy Economy Transformation under the Goal of Carbon Neutrality

Abstract

Considering the urgent global issues brought out by climate change, several countries have made "carbon neutrality" the centerpiece of national policies, aiming for a world free of carbon emissions. Environmental laws (R.L.) and breakthroughs in renewable energy technology (RET) are essential to achieving carbon neutrality goals, which are central to this transition. Using pane figures from 30 Chinese provinces between 1998 and 2020, this research adopts a spatial E-Model to explore the interrelated effects of R.I. and RET on green sustainability. It also makes use of theoretical frameworks and empirical data. The results show that if R.I. may not directly improve the local and surrounding environmental quality, it helps reduce CO2 emissions, especially when economic growth is above the key threshold of 9.126, shown by an "inverted U-shaped" connection in the curve. On the other hand, although RET positively impacts the environment, its effectiveness in reducing carbon emissions decreases if economic growth is above the 8.790 threshold. As a result, the research highlights the dependence of R.I. and RET's carbon reduction benefits on area, underscoring the need for a sophisticated policy strategy that considers economic development levels. This study aims to help policymakers develop comprehensive plans for promoting environmental sustainability, especially within the specific circumstances of the Chinese area.

Keywords

• carbon neutrality
• climate change
• economic growth
• energy economy
• environmental sustainability