Synergies and complexities in China’s green transition: a multi-scale wavelet approach
摘要
China’s path to carbon neutrality requires an understanding of the complex drivers behind its renewable energy transition. This study examines China’s renewable energy transition (RET), focusing on the interplay among economic, environmental, and technological considerations. We use wavelet analysis and frequency-based causality testing to study how Outward Direct Investment (ODI), Technological Innovation (TEI), Urbanization (URB), Natural Resource Rent (NRR), and Environmental Policy (ENP) impact RET across many time scales from 1990–2022. The results show that Technological Innovation regularly has a substantial beneficial impact on RET across all frequencies, therefore underlining its essential function in promoting China’s energy transformation. Environmental policy demonstrates a favorable but varied influence; the effects of other elements are more complicated and context-dependent. The multivariate study reveals that these elements account for 99% of the fluctuations in China’s RET, underscoring their overall significance. While other variables exhibit directional impacts, causality tests establish the bidirectional association between technological innovation and RET. These findings underscore the need for a comprehensive and flexible strategy in Chinese energy policy, encompassing technological, environmental, and economic aspects. Policymakers may better navigate the challenges of transitioning to renewable energy by understanding the dynamic interplay among these elements, thereby supporting global sustainability efforts.