Analyzing environmental delivery of industrial technology and energy use-loss in China

Abstract This study examines key indicators impacting China’s industrial sector: carbon dioxide (CO2) emissions by industry, industrial value added per worker, technology advancement in industrial design, fossil fuel usage, and energy losses in production and transmission. China’s industrial sector,...

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Main Authors: Mustafa Naimoğlu, Andrew Adewale Alola
Format: Article
Language:English
Published: SpringerOpen 2025-01-01
Series:Journal of Economic Structures
Subjects:
Online Access:https://doi.org/10.1186/s40008-024-00344-z
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author Mustafa Naimoğlu
Andrew Adewale Alola
author_facet Mustafa Naimoğlu
Andrew Adewale Alola
author_sort Mustafa Naimoğlu
collection DOAJ
description Abstract This study examines key indicators impacting China’s industrial sector: carbon dioxide (CO2) emissions by industry, industrial value added per worker, technology advancement in industrial design, fossil fuel usage, and energy losses in production and transmission. China’s industrial sector, heavily reliant on fossil fuels, has significant implications for environmental quality, establishing the country as the leading global carbon emitter. Rising energy losses compound economic challenges by driving up energy demand, increasing external dependencies, and straining foreign exchange reserves. In this context, we analyze how China’s industrial environment responds to technology adoption, energy losses, and fossil fuel usage. Using Fourier extensions enriched with time-series analyses, we assess the direction and magnitude of these responses, alongside testing the Environmental Kuznets Curve (EKC) hypothesis using Fully Modified Ordinary Least Squares, Canonical Cointegrating Regressions, and Dynamic Ordinary Least Squares methods. Our findings affirm the EKC hypothesis for China’s industrial sector, revealing that while fossil fuel usage and energy losses drive up CO2 emissions, advancements in industrial technology can offset some of these environmental impacts by reducing carbon emissions. Based on these findings, policymakers should focus on technological innovations that help decrease energy losses and fossil fuel consumption within the industrial sector.
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spelling doaj-art-5e4a60a4e0124309a612c47212f170552025-01-12T12:08:54ZengSpringerOpenJournal of Economic Structures2193-24092025-01-0114111710.1186/s40008-024-00344-zAnalyzing environmental delivery of industrial technology and energy use-loss in ChinaMustafa Naimoğlu0Andrew Adewale Alola1Faculty of Economics and Administrative Sciences, Department of Economics, Bingöl UniversityCREDS-Centre for Research On Digitalization and Sustainability, University of Inland NorwayAbstract This study examines key indicators impacting China’s industrial sector: carbon dioxide (CO2) emissions by industry, industrial value added per worker, technology advancement in industrial design, fossil fuel usage, and energy losses in production and transmission. China’s industrial sector, heavily reliant on fossil fuels, has significant implications for environmental quality, establishing the country as the leading global carbon emitter. Rising energy losses compound economic challenges by driving up energy demand, increasing external dependencies, and straining foreign exchange reserves. In this context, we analyze how China’s industrial environment responds to technology adoption, energy losses, and fossil fuel usage. Using Fourier extensions enriched with time-series analyses, we assess the direction and magnitude of these responses, alongside testing the Environmental Kuznets Curve (EKC) hypothesis using Fully Modified Ordinary Least Squares, Canonical Cointegrating Regressions, and Dynamic Ordinary Least Squares methods. Our findings affirm the EKC hypothesis for China’s industrial sector, revealing that while fossil fuel usage and energy losses drive up CO2 emissions, advancements in industrial technology can offset some of these environmental impacts by reducing carbon emissions. Based on these findings, policymakers should focus on technological innovations that help decrease energy losses and fossil fuel consumption within the industrial sector.https://doi.org/10.1186/s40008-024-00344-zIndustry sectorEconomic growthTechnology advancementFossil fuelEnergy lossesCarbon emissions
spellingShingle Mustafa Naimoğlu
Andrew Adewale Alola
Analyzing environmental delivery of industrial technology and energy use-loss in China
Journal of Economic Structures
Industry sector
Economic growth
Technology advancement
Fossil fuel
Energy losses
Carbon emissions
title Analyzing environmental delivery of industrial technology and energy use-loss in China
title_full Analyzing environmental delivery of industrial technology and energy use-loss in China
title_fullStr Analyzing environmental delivery of industrial technology and energy use-loss in China
title_full_unstemmed Analyzing environmental delivery of industrial technology and energy use-loss in China
title_short Analyzing environmental delivery of industrial technology and energy use-loss in China
title_sort analyzing environmental delivery of industrial technology and energy use loss in china
topic Industry sector
Economic growth
Technology advancement
Fossil fuel
Energy losses
Carbon emissions
url https://doi.org/10.1186/s40008-024-00344-z
work_keys_str_mv AT mustafanaimoglu analyzingenvironmentaldeliveryofindustrialtechnologyandenergyuselossinchina
AT andrewadewalealola analyzingenvironmentaldeliveryofindustrialtechnologyandenergyuselossinchina