Energy efficiency and China's carbon emissions: evidence from non-parametric approaches

In the recent times, the issue of excessive carbon emission is a hot topic among the scholars and governors. In this context, it is necessary to examine the factors affecting the emissions level, particularly in emerging economy like China. Using the extended period from 1990 to 2021, this study analyzes the impact of energy efficiency, economic growth, and renewable energy along with the testing of environmental Kuznets curve (EKC) paradox. The empirical results validate the cointegration between the mentioned variables. Employing the novel non-parametric approaches, this study found the existence of the EKC hypothesis in the country as the economic growth initially increases environmental challenges, while reducing it after reaching a specific income level. On the other hand, energy efficiency and renewable energy consumption are found to be significant tools for improving environmental sustainability and reducing of carbon emissions. The robustness of the results is confirmed by the non-parametric (bootstrap quantile regression) and parametric (fully modified ordinary least square) approaches. Based on the outcomes, this study also revealed policy implications for the scholars and governors.