China's Resource Use: Infrastructure, Green Innovation, and Sustainability

What is it about?

This study examines the asymmetric impact of resource depletion associated with China's infrastructure development and urbanization, while considering green innovation and economic growth from 1990 to 2018. Using a Quantile ARDL approach, the research analyzes the effects on material footprint (MF) across different quantiles. The findings show that infrastructure development, urbanization, and economic growth significantly contribute to MF, with varying effects across quantiles. Green innovation decreases MF, particularly at higher quantiles. The study validates the Environmental Kuznets Curve hypothesis in the long run. These results offer valuable policy recommendations for sustainable resource management and eco-innovation in China, emphasizing the need for environmentally friendly policies and practices in urban development and infrastructure projects.

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Photo by zhang kaiyv on Unsplash

Photo by zhang kaiyv on Unsplash

Why is it important?

This research is important because: It analyzes the impact of China's rapid infrastructure development and urbanization on resource consumption, which is a critical global concern. It employs a novel Quantile ARDL approach to account for various factors like structural changes, policy shifts, and economic shocks, providing a more comprehensive analysis. The study offers valuable policy recommendations for sustainable development, which is crucial for China as the world's largest consumer of natural resources. It contributes to understanding the relationship between economic growth, urbanization, and resource consumption, which is relevant for other developing countries facing similar challenges. The research aligns with global sustainability goals, particularly Sustainable Development Goal 12 related to resource conservation. Key Takeaways: - Infrastructure development, urbanization, and economic growth significantly contribute to material footprint (MF) in China, with varying effects across different quantiles. - Green innovation significantly decreases the material footprint, especially at higher quantiles, highlighting its importance in resource conservation efforts. - The study validates the Environmental Kuznets Curve hypothesis in the long run, suggesting that environmental degradation may decrease as the economy continues to grow beyond a certain point.