Investigations on the relation between China’s increasing renewable energy power generation and economic expansion

Abstract

This study is intended to investigate the relation of China's economy expansion and renewable energy output. Expressing electricity production using renewable resources as the growth rate of renewable energy electricity output by category and the growth rate of renewable energy share, while denoting economic growth as GDP growth rate and electricity consumption per unit of GDP, the research examined the panel data from 2002 to 2020 with OLS model, and the robustness tests and heterogeneity analysis were completed. Research finds that China's renewable energy generation growth has a two-way relationship with economic growth. For heterogeneity analysis, the panel data of province GDP growth and electricity generation growth rates were used. The findings suggest that the classification criteria for provinces or the control factors that affect the findings need to be improved and taken into account. The finding shows that under the precondition that developing countries' rising energy usage benefits their economies' progress, optimizing the energy structure and promoting green transformation and sustainable development will both temporarily and permanently aid in the economy’s development.