A panel co-integration analysis for economic development, energy consumption, urbanization, and carbon dioxide emissions in China's six provinces

摘要

Urban planning and energy consumption management gradually play an increasingly significant role in carbon dioxide (CO2) emissions reduction. However, the current studies related to the nexus among them are insufficient, which need to be explored. This article focuses on quantifying the nexus among CO2 emissions, economic development, energy consumption, and urbanization according to data collected from top six provinces (Shanxi, Shaanxi, Shandong, Hebei, Jiangsu, and Inner Mongolia) of CO2 emissions in China between 1997 and 2015 using multi-variate panel data model (PDM). According to the coefficients in PDM, the energy consumption of Shanxi, Inner Mongolia, Hebei, and Shaanxi make the greatest contribution to CO2 emissions and the economic development of Jiangsu and Shandong are deemed as the greatest contributor to CO2 emissions. The Granger causality results illustrate a bi-directional causality exists between economic progress and CO2 emissions and between energy consumption and CO2 emissions for six provinces. Finally, the pathways to handle with the contradictions between economic development and CO2 mitigation of top six provinces are proposed, namely decreasing fossil fuels based energy consumption, giving impetus to renewable energy development, exploring a new evaluation system to judge low carbon economy progress, and increasing investment on equipments to improve energy efficiency.