The effect of fossil fuel and hydropower on carbon dioxide emissions: EKC validation with structural breaks

    Chenxia Xia Affiliation
    ; Zilong Wang Affiliation


This research is carried out to explore the relationship between economic growth, fossil energy, carbon emissions, hydropower, industrial development and energy endowment, and the effectiveness of the environmental Kuznets curve (EKC) hypothesis in China from 1965 to 2016 is tested. To this end, some econometric methods with structural breaks are employed. The results illustrate that the EKC considering structural breaks is existed in China. Furthermore, hydropower consumption can significantly reduce carbon dioxide (CO2) emissions, however, the reduction can be masked by the increase of fossil energy consumption. In addition, industrialization level and economic growth positively and significantly affect CO2 emissions. Finally, some policies for reducing CO2 emissions are put forward.

Keyword : hydropower, Environmental Kuznets curve, structural breaks, CO2 emissions, fossil fuel, Granger causality

How to Cite
Xia, C., & Wang, Z. (2020). The effect of fossil fuel and hydropower on carbon dioxide emissions: EKC validation with structural breaks . Journal of Environmental Engineering and Landscape Management, 28(1), 36-47.
Published in Issue
Mar 20, 2020
Abstract Views
PDF Downloads
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.


Abdulkadir, A. (2016). Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test. Renewable and Sustainable Energy Reviews, 62, 1209-1225.

Arestis, P., & Baltar, C. T. (2019). A model of economic growth for an open emerging country: empirical evidence for Brazil. Structural Change and Economic Dynamics, 49, 217-227.

Alam, M. M., Murad, M. W., Noman, A. H. M., & Ozturk, I. (2016). Relationships among carbon emissions, economic growth, energy consumption and population growth: testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia. Ecological Indicator, 70, 466-479.

Bai, J., & Perron, P. (2003). Computation and analysis of multiple structural change models. Cahiers de Recherche, 18, 1-22.

Balado-Naves, R., Baños-Pino, J. F., & Mayor, M. (2018). Do countries influence neighbouring pollution? A spatial analysis of the EKC for CO emissions. Energy Policy, 123, 266-279.

Bimonte, S., & Stabile, A. (2017). Land consumption and income in Italy: a case of inverted EKC. Ecological Economics, 131, 3643.

Bekhet, H. A., & Othman, N. S. (2018). The role of renewable energy to validate dynamic interaction between CO2 emissions and GDP toward sustainable development in Malaysia. Energy Economics, 72, 47-61.

Bhattacharya, M., Churchill, S. A., & Paramati, S. R. (2017). The dynamic impact of renewable energy and institutions on economic output and CO2 emissions across regions. Renewable Energy, 111, 157-167.

Bian, N., & Yu, H. W. (2019). How does energy endowment and technological progress affect carbon emission intensity? An empirical analysis based on China’s Yangtze River economic zone. Ekoloji Dergisi, 28, 3991-4002.

Bernier, M., & Plouff, M. (2019). Financial innovation, economic growth, and the consequences of macroprudential policies. Research in Economics, 73, 162-173.

Bello, M. O., Sakiru, A. S., & Yuen, Y. Y. (2018). The impact of electricity consumption on CO2 emission, carbon footprint, water footprint and ecological footprint: the role of hydropower in an emerging economy. Journal of Environmental Management, 219, 218-230.

Bildirici, M. E., & Gökmenoğlu, S. M. (2017). Environmental pollution, hydropower energy consumption and economic growth: Evidence from G7 countries. Renewable and Sustainable Energy Reviews, 75, 68-85.

BP. (2018). BP Statistical Review of Word Energy 2018. Retrieved from

CSY. (2018). China statistical yearbook. Retrieved from

CESY. (2017). China energy statistical yearbook. Retrieved from

Dong, B., Wang, F., & Guo, Y. (2016). The global EKCs. International Review of Economics & Finance, 43, 210-221.

Dong, K., Sun, R., & Dong, X. (2018). CO2 emissions, natural gas and renewables, economic growth: assessing the evidence from China. Science of the Total Environment, 640-641, 293-302.

Dong, C., Dong, X., Jiang, Q., Dong, K., & Liu, G. (2018). What is the probability of achieving the carbon dioxide emission targets of the Paris agreement? Evidence from the top ten emitters. Science of the Total Environment, 622, 1294-1303.

Danish, Zhang, B., Wang, B., & Wang, Z. (2017). Role of renewable energy and non-renewable energy consumption on EKC: Evidence from Pakistan. Journal of Cleaner Production, 156, 855-864.

Du, Q., Shao, L., Zhou, J., Huang, N., Bao, T., & Hao, C. C. (2019). Dynamics and scenarios of carbon emissions in China’s construction industry. Sustainable Cities and Society, 48, 101556.

Gill, A. R., Viswanathana, K. K., & Hassanb, S. (2018). The Environmental Kuznets Curve (EKC) and the environmental problem of the day. Renewable and Sustainable Energy Reviews, 81, 1636-1642.

Ghaffar, A., Ashraf, A., Bashir, M. K., & Cui, S. H. (2017). Exploring environmental Kuznets curve (EKC) in relation to green revolution: a case study of Pakistan. Environmental Science & Policy, 77, 166-171.

Gasparatos, A., Doll, C., Esteban, M., Ahmed, A., & Olang, T. A. (2017). Renewable energy and biodiversity: implications for transitioning to a Green Economy. Renewable and Sustainable Energy Reviews, 70, 161-184.

Haraguchi, N., Martorano, B., & Sanfilippo, M. (2019). What factors drive successful industrialization? Evidence and implications for developing countries. Structural Change and Economic Dynamics, 49, 266-276.

Kasman, A., & Duman, Y. S. (2015). CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: a panel data analysis. Economic Modelling, 44, 97-103.

Kousksou, T., Allouhi, A., Belattar, M., Jamil, A., Rhafiki, T. E., & Zeraouli, Y. (2015). Morocco’s strategy for energy security and low-carbon growth. Energy, 84, 98-105.

Liu, X., Zhang, S., & Bae, J. (2017). The impact of renewable energy and agriculture on carbon dioxide emissions: investigating the environmental Kuznets curve in four selected ASEAN countries. Journal of Cleaner Production, 164, 12391247.

Li, K., & Lin, B. Q. (2015). Impacts of urbanization and industrialization on energy consumption/CO2 emissions: does the level of development matter? Renewable and Sustainable Energy Reviews, 52, 1107-1122.

Li, T., Wang, Y., & Zhao, D. (2016). Environmental Kuznets Curve in China: new evidence from dynamic panel analysis. Energy Policy, 91, 138-147.

Muhammad, B. (2019). Energy consumption, CO2 emissions and economic growth in developed, emerging and Middle East and North Africa countries. Energy, 179, 232-245.

Muhammad, S., Mantu, K. M., Syed, J. H., & Shawkat, H. (2019). Testing the globalization-driven carbon emissions hypothesis: International evidence. International Economics, 158, 25-38.

Mohamed, H., Jebli, M. B., & Youssef, S. B. (2019). Renewable and fossil energy, terrorism, economic growth, and trade: Evidence from France. Renewable Energy, 139, 459-467.

Meng, M., Fu, Y. N., & Wang, X. F. (2018). Decoupling, decomposition and forecasting analysis of China’s fossil energy consumption from industrial output. Journal of Cleaner Production, 177, 752-759.

Mikayilov, J. I., Galeotti, M., & Hasanov, F. J. (2018). The impact of economic growth on CO2 emissions in Azerbaijan. Journal of Cleaner Production, 197, 1558-1572.

Ngarambe, J., Lim, H. S., & Kim, G. (2018). Light pollution: Is there an Environmental Kuznets Curve? Sustainable Cities and Society, 42, 337-343.

Ogino, K., Dash, S. K., & Nakayama, M. (2019). Change to hydropower development in Bhutan and Nepal. Energy for Sustainable Development, 50, 1-17.

Pata, U. (2018). Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: Testing EKC hypothesis with structural breaks. Journal of Cleaner Production, 187, 770-779.

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326.

Pinzón, K. (2018). Dynamics between energy consumption and economic growth in Ecuador: A granger causality analysis. Economic Analysis and Policy, 57, 88-101.

Rafindadi, A. A., & Ozturk, I. (2016). Effects of financial development, economic growth and trade on electricity consumption: evidence from post-Fukushima Japan. Renewable and Sustainable Energy Reviews, 54, 1073-1084.

Rahman, M. M., & Kashem, M. A. (2017). Carbon emissions, energy consumption and industrial growth in Bangladesh: Empirical evidence from ARDL cointegration and Granger causality analysis. Energy Policy, 110, 600-608.

Shabani, Z. D., & Shahnazi, R. (2019). Energy consumption, carbon dioxide emissions, information and communications technology, and gross domestic product in Iranian economic sectors: A panel causality analysis. Energy, 169, 1064-1078.

Seker, F., Ertugrul, H. M., & Cetin, M. (2015). The impact of foreign direct investment on environmental quality: A bounds testing and causality analysis for Turkey. Renewable and Sustainable Energy Reviews, 52, 347-356.

Ulucak, R., & Bilgili, F. (2018). A reinvestigation of EKC model by ecological footprint measurement for high, middle and low income countries. Journal of Cleaner Production, 188, 144-157.

Wang, Y. P., Yan, W. L., Zhuang, S. W., & Zhang, Q. (2019). Competition or complementarity? The hydropower and thermal power nexus in China. Renewable Energy, 138, 531-541.

Xie, Q. H., Xu, X., & Liu, X. Q. (2019). Is there an EKC between economic growth and smog pollution in China? New evidence from semiparametric spatial autoregressive models. Journal of Cleaner Production, 220, 873-883.

Zhang, B., Wang, B., & Wang, Z. (2017). Role of renewable energy and non-renewable energy consumption on EKC: evidence from Pakistan. Journal of Cleaner Production, 156, 855-864.

Zhang, L., Pang, J. X., Chen, X. P., & Lu, Z. (2019). Carbon emissions, energy consumption and economic growth: Evidence from the agricultural sector of China’s main grain-producing areas. Science of The Total Environment, 665, 1017-1025.

Zhong, R., Zhao, T. G., He, Y. H., & Chen, X. H. (2019). Hydropower change of the water tower of Asia in 21st century: A case of the Lancang River hydropower base, upper Mekong. Energy, 179, 685-696.

Zhou, K., & Li, Y. W. (2019). Influencing factors and fluctuation characteristics of China’s carbon emission trading price. Physica A: Statistical Mechanics and its Applications, 524, 459474.

Zhou, X. X., & Feng, C. (2017). The impact of environmental regulation on fossil energy consumption in China: Direct and indirect effects. Journal of Cleaner Production, 142, 3174-3183.