Role of mineral resource rents, renewable energy, and energy efficiency toward carbon neutrality in China

Abstract

Environmental degradation has made climate change and global warming major global issues. Countries worldwide have set targets to reduce carbon emissions. Transitioning to clean energy, responsible resource extraction, and improving energy utilization are critical for preserving the ecosystem and reducing greenhouse gases. This study analyzes China's carbon emissions from 1990 to 2021, including factors like mineral resource extraction, economic growth, renewable energy use, and energy efficiency advancements. The paper uses advanced econometric methods including unit root testing, long-run cointegration analysis using the Autoregressive Distributed Lag (ARDL) framework, and empirical analysis with the Dynamic Ordinary Least Squares Estimator (DOLS). The results indicate that extraction of natural resources, upgrades in energy efficiency, and utilization of clean energy sources have an adverse link with carbon emissions, thereby emphasizing the positive effects on the environment. Conversely, there is an encouraging connection between economic growth and carbon emissions. These findings emphasize the importance of allocating resources toward renewable energy technologies to promote eco-friendly production and maximize mineral resource utilization. In order to effectively address global warming, policymakers and practitioners must prioritize the allocation of funds to the creation of green and alternative energy sources, the improvement of energy effectiveness, and the optimization of resource utilization.