CO2 emissions, natural gas and renewables, economic growth: Assessing the evidence from China.

This study aims to test the environmental Kuznets curve (EKC) for carbon dioxide (CO2) emissions in China by developing a new framework based on the suggestion of Narayan and Narayan (2010). The dynamic effect of natural gas and renewable energy consumption on CO2 emissions is also analyzed. Considering the structural break observed in the sample, a series of econometric techniques allowing for structural breaks is utilized for the period 1965-2016. The empirical results confirm the existence of the EKC for CO2 emissions in China. Furthermore, in both the long-run and the short-run, the beneficial effects of natural gas and renewables on CO2 emission reduction are observable. In addition, the mitigation effect of natural gas on CO2 emissions will be weakened over time, while renewables will become progressively more important. Finally, policy suggestions are highlighted not only for mitigating CO2 emissions, but also for promoting growth in the natural gas and renewable energy industries.