ENVIRONMENTAL MODELING AND ASSESSMENT, cilt.28, sa.2, ss.1-15, 2023 (SCI-Expanded)
As a major source of greenhouse gases, energy generation poses a threat to modern civilization; however, it also holds some of the remedies to the climate change problem. Hydroelectricity generation and renewable electricity generation produce relatively less carbon dioxide and ensure sustainability. China is the largest producer and consumer of hydropower in the world. In this context, this study revisits the nexus of hydropower generation, trade, urbanization, economic growth and carbon dioxide emissions in China using the novel QARDL approach. The use of QARDL is warranted to explain the heterogeneous effects of factors affecting environmental degradation at distinct quantile levels. Findings revealed that EKC is valid, urbanization worsens while trade and hydropower generation mitigates environmental degradation. The study calls for effective policies to enhance investment in hydropower generation.