Table './tdc/tbl_dc_meta_control_57' is marked as crashed and last (automatic?) repair failed
Deng, Chaoyou . The Nexus between economic growth and renewable energy in China: insights from a simultaneous equations model. Master's Degree(). Chiang Mai University. Library. : Chiang Mai University, 2025.
The Nexus between economic growth and renewable energy in China: insights from a simultaneous equations model
Abstract:
Amid the global shift toward green development, renewable energy is a key driver of sustainable growth. China, as the worlds largest energy consumer and emitter, prioritizes wind, solar, and hydro power to balance economic development with environmental goals. Although much research explores the energygrowth nexus, most focus on fossil fuels, with limited attention to renewable sources, and particularly insufficient understanding of the economic impacts of their production.
Using panel data from 30 Chinese provinces (20132022), this study employs simultaneous equation models to analyze dynamic relationships between renewable energy production (wind, solar, hydro), economic growth, and energy consumption. The model addresses endogeneity and reveals bidirectional causality between renewable energy and economic activity. Controls like urbanization, technological innovation, and human capital enhance result robustness and explanatory power. This study finds a significant positive bidirectional link between renewable energy consumption and economic growth, while the impact of renewable energy production on growth varies by energy type. These findings provide theoretical and practical implications for China's energy policy and regional development strategies in the context of green transition.