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On the asymmetric effects of financial deepening on renewable and non-renewable energy consumption: insights from China

On the asymmetric effects of financial deepening on renewable and non-renewable energy consumption: insights from China

Authors :
Ilhan Ozturk
Sana Ullah
Hafeez Muhammad
Wang Lei
Source :
Ekonomska Istraživanja, Vol 0, Iss 0, Pp 1-18 (2021), Economic research-Ekonomska istraživanja, Volume 35, Issue 1
Publication Year :
2021
Publisher :
Taylor & Francis Group, 2021.

Abstract

One of the strategic objectives of China is to increase renewable energy consumption by reducing non-renewable energy consumption. This motivates us to carefully investigate the asymmetric effects of financial deepening on renewable and non-renewable energy consumption for China, using annual data from 1990 to 2019. The results show that in China, a positive shock in bank deposits and broad money has a significant increasing effect on renewable energy consumption, while a negative shock in bank deposits and broad money has also a significant increasing effect on renewable energy consumption in the long-run. Moreover, positive change in bank deposits and broad money has an inverse impact on non-renewable energy consumption, while negative change has stimulating non-renewable energy consumption in long run. Thus, government and policymaker’s policies aimed at promoting financial deepening in China must be persistent and sustainable to foster renewable energy consumption.

Details

Language :
English
ISSN :
18489664 and 1331677X
Database :
OpenAIRE
Journal :
Ekonomska Istraživanja
Accession number :
edsair.doi.dedup.....846f2a540228a6075ae2a949836f6597