Sustainability | Free Full-Text | Examining the Asymmetric Nexus between Energy Consumption, Technological Innovation, and Economic Growth; Does Energy Consumption and Technology Boost Economic Development?

This research study intends to check out the connection in between the potential effects of energy usage and technological innovation on economic development in China from 1980 to 2018. The Non-Linear Autoregressive Distributive Lag (NARDL) econometric method reveals an asymmetric connection in between technological development, energy consumption, and financial development in China from 1980 to 2018. The empirical results also reveal that a 1% decrease in energy consumption would imperatively decline financial development by 12.5%. Moreover, a 1% upswing in trademark applications enhances financial development by 8.2%. For the case of China, this research study reveals that a big part of the energy was used by households, which is considered as a non-contributing element to the economy of China. This study recommends that the promo and production of energy-efficient processes and products is required in order to make a more significant step toward sustainable development. The empirical findings also recommend that the Chinese federal government must manage appropriate policies intended at promoting energy effectiveness and the control of inefficient energy usages.
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