Alternative Energy and CO2 Emission in China: Evidence from Bounds Testing and Vector Error Correction Model Approach

This empirical study investigates the dynamic interconnection between fossil fuel consumption, alternative energy economic growth and carbon emissions in China over 1981 to 2020 time period within a multivariate framework. The long-term relationships sequences are determined through application of Autoregressive Distributed Lag (ARDL) bounds test augmented by Johansen maximum likelihood procedure. causal variables tested with Granger causality technique based on Vector Error Correction Model (VECM). Empirical results reveal existence statistically significant negative relationship consumption equilibrium. Furthermore, VECM demonstrate that both have unidirectional effects growth. Additionally, highlights short-term from consumption. These findings suggest reduction short run may indirectly impede development energy. proposes should expedite control expansion attain its target without hindering