Ecological footprint, electricity consumption, and economic growth in China: geopolitical risk and natural resources governance

This paper examines the relationship among ecological footprint (EF), electricity consumption, and GDP in China using annual data ranging from 1960 to 2019. However, factors like trade openness, urbanization, and life expectancy might increase EF as ecological distortions are mainly human-induced. This study explores the effect of these variables on the environment, which is captured by EF. Quantile Regression estimates indicate that electricity consumption and real GDP increase environmental degradation, while trade and urbanization reduce EF, allowing for a higher environmental quality. On the other hand, the spectral Granger-causality tests reveal that only urbanization and life expectancy affect environmental degradation over the whole frequency domain. In the current geopolitical scenario, relevant policy implications may be derived.

Automated summary

This paper examines the relationship between ecological footprint (EF), electricity consumption, and GDP in China using annual data from 1960 to 2019. The study finds that factors like trade openness, urbanization, and life expectancy may increase EF as they are mainly human-induced ecological distortions. The results show that electricity consumption and real GDP contribute to environmental degradation, while trade and urbanization help reduce EF and improve environmental quality. The study also concludes that urbanization and life expectancy have a significant impact on environmental degradation across all frequencies.