Advancing Environmental Sustainability: A Study on Energy and Resource Efficiency through Technological Innovation in China

AbstractSection Abstract

Energy efficiency leads to the sustainable utilization of energy resources by adopting efficient technology, which is a decisive factor for environmental sustainability. This study proposed both renewable and non-renewable energy types to measure energy efficiency and environmental sustainability in China. Furthermore, this study adds technology as an auxiliary factor for energy efficiency and sustainability to resource efficiency. Therefore, the study espouses the N-ARDL technique for asymmetric short and long run positive–negative shocks from 1985 to 2020. The asymmetric outcomes indicate that the positive and negative effects of economic growth and positive technological innovation shocks assist in mitigating carbon secretions, whereas technological innovation is not environmentally efficient during negative shocks. Simultaneously, energy efficiency is measured using both renewable and non-renewable energy factors. The positive shock in coal consumption is alarming for environmental efficiency, whereas its negative shock efficiently mitigates carbon secretions and assists environmental sustainability. However, both positive and negative shocks related to renewable energy are environmentally friendly and support environmental efficiency in China. Therefore, renewable energy is considered an energy-efficient source during asymmetric shocks, whereas non-renewable energy is only efficient during negative shocks, suggesting the sustainable utilization of coal resources. Furthermore, resource rents are inefficient during positive shocks and cause environmental deprivation, whereas they are environmentally efficient during negative shocks. These findings suggest that the Chinese government should take steps to improve environmental monitoring and enhance transparency. Further, Fintech projects under green growth and energy initiatives need further improvements to gain energy as well as resource and environmental efficiency.

AbstractSection Highlights

• Resource rents during negative shock is considered as resource-efficient and environmentally efficient.

• Energy efficiency is measured by both renewable and non-renewable energy factors.

• The positive shock in coal consumption is alarming for environmental efficiency, while its negative shock is efficiently mitigating carbon secretions.

• Renewable energy’s is considered an energy-efficient source and both positive and negative shocks are environmental-led and support environmental efficiency in China.

• Findings illustrate that positive-negative effect of economic growth and positive technological innovation shock assist in mitigating carbon secretions.

AbstractSection Graphical Abstract