Assessing the dynamic linkage between energy efficiency, renewable energy consumption, and CO2 emissions in China.

Efficient energy is crucial in reducing CO2 emissions. The researchers are digging for a new efficient source of energy in the modern era. Therefore, this study explores the dynamic impacts of energy efficiency and renewable energy consumption on CO2 emissions from 1991 to 2019 for China. By using the non-linear ARDL approach, we found that a negative shock in energy efficiency has a positive impact on CO2 emissions in long run. Furthermore, renewable energy consumption with positive shock has a negative significant impact on CO2 emissions, but negative shock in renewable energy consumption leads to increase pollution emissions in long run. Besides, positive shocks to energy efficiency and renewable energy consumption have also a favorable negative effect on CO2 emissions in the short run. While a negative shock in energy efficiency has only unobservable negative impacts on CO2 emissions in the short run. Based on findings, some policy measures are suggested to attain environmental sustainability in China.