Abstract
This research investigates the resource curse hypothesis and environmental sustainability by integrating China’s natural resources, renewable energy, and urbanization. However, the EKC N shape describes the complete picture of the EKC hypothesis for the growth-pollution relationship. The findings of FMOLS and DOLS show that economic expansion positively drives carbon dioxide emissions in the beginning, then negatively so after the target level of growth is reached. Continuing economic expansion in China does not maintain the intended level and again has a beneficial impact on the country’s carbon dioxide emissions. However, the EKC U, inverted U, and N shapes persist in the growth-pollution connection over the long term. Although adopting renewable energy and urbanization help reduce carbon dioxide emissions, the formation of fixed capital worsens environmental conditions. Natural resource rents are a major cause of environmental degradation and the resource curse that has plagued China. Economic growth, as well as its square and cube, has a causal effect on CO2 emissions, as shown by the frequency domain causation. Carbon dioxide emissions at frequencies of 0.05, 1.50, and 2.50 are momentarily predicted by the use of renewable energy and urbanization. The investigation recommends switching to renewable energy sources owing to low cost and the potential to limit the overuse of non-renewables. To balance the overdo of natural resources and ensure continued long-term growth-environment sustainability, technological advancement is recommended as a countermeasure as a mitigating mechanism.
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The datasets are available from the corresponding author on reasonable request but are not publicly available.
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Yongming Huang: supervision and technical advices; Syed Zain Ul Abidin: initial draft preparation, data collection, tabulation, result interpretation, conclusion and recommendations; Syed Muhammad Faraz Raza: methodological framework, econometric result estimation, hypothesis testing.
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Huang, Y., Abidin, S.Z.U. & Raza, S.M.F. Investigation of resource curse hypothesis: the role of renewable energy and urbanization in realizing environmental sustainability in China. Environ Sci Pollut Res 30, 86927–86939 (2023). https://doi.org/10.1007/s11356-023-28300-7
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DOI: https://doi.org/10.1007/s11356-023-28300-7