An assessment on the new impetus of green energy development and its impact on climate change: A non-linear perspective

Author:

Xu Bin1ORCID,Xu Renjing1

Affiliation:

1. Xiamen University

Abstract

Abstract

Green energy is an important path to address global climate change. Evaluating the impact of new economic variables on green energy is a prerequisite for effectively promoting green energy growth. The existing literature has used linear methods to investigate green energy, ignoring the non-linear relationships between economic variables. In view of this, based on the 2005–2021 panel data of China’s 30 provinces, this article adopts a data-driven non-parametric additive model to investigate the impact of new impetus on green energy development. The empirical results reveal that the impact of green finance on green energy development is more prominent in the later stage (a U-shaped impact). Fiscal decentralization also eexerts a positive U-shaped impact, meaning that in the later stage, expanding local fiscal autonomy has contributed to green energy growth. Similarly, the impact of oil prices on green energy shows a positive U-shaped pattern. In addition, the impact of foreign direct investment, environmental pressure, and fixed asset investment also exhibits obvious nonlinear characteristics. Furthermore, this article investigates the impact of green energy on climate change and its impact mechanisms. The results exhibit that the impact of green energy on climate change is gradually becoming prominent (a U-shaped pattern). Mechanism analysis shows that industrial structure and energy structure both peoduce a nonlinear impact on climate change.

Publisher

Research Square Platform LLC

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