Effects of ICT and Energy Transition on Sustainable Fiscal Growth: Empirical Evidence from China

Shuguang Wang; Wantao Li

doi:10.5755/j01.ee.35.2.33431

Authors

Shuguang Wang School of Finance and Public Administration, Harbin University of Commerce, China
Wantao Li School of Finance and Public Administration, Harbin University of Commerce, China

DOI:

https://doi.org/10.5755/j01.ee.35.2.33431

Keywords:

ICT, energy transition, sustainable fiscal growth, QARDL, China

Abstract

It is crucial for sustainable growth policies and strategies, which are currently being used internationally, to balance the various aspects of development, including the economic, environmental, and social ones. There is currently broad agreement that energy transition and Information and communication technologies (ICT) offer fresh momentum for long-term sustainable fiscal growth. The main goal of the current research is to study the effects of energy transition and ICT on sustainable fiscal growth in China over 1995-2020 period. To empirically estimate the above mentioned nexus, the recently introduced Quantile Autoregressive Distributed Lag Model (QARDL) is applied. The study findings for long run indicate that energy transition impacts sustainable fiscal growth negatively over lower qauntiles and at extreme higher quantiles. However, the ICT is found to promote sustainable fiscal growth at all quantiles. The short run dynamics also indicate that current and previous values of ICT and energy transition have significant impact on sustainable fiscal growth. The Wald test of parameter constancy rejects the null hypothesis and shows that non linear and asymmetric impact is present between sustainable fiscal growth and ICT and energy transition in the short run and the long run. Test of Quantile Granger Causality reveals bidirectional causal association between study variables. The study recommends the Chinese government and policy makers to adopt efficient policies to promote ICT use among all the sectors of the economy that can help in achieving sustainable fiscal growth.

Author Biographies

Shuguang Wang, School of Finance and Public Administration, Harbin University of Commerce, China

Shuguang Wang received a doctor‘s degree from Huazhong University of Science and Technology, P.R. China. Now, he is the dean of the School of Finance and Public Management of Harbin University of Commerce, the head of the national first-class major in finance, the provincial key major in finance, the first-class major, the key discipline, and the provincial excellent course "finance", and the leader of the talent echelon of the provincial public management discipline. His research interests include Fiscal policy and public management.

Wantao Li, School of Finance and Public Administration, Harbin University of Commerce, China

Wantao Li has built a commendable academic and professional profile centered around his expertise in fiscal policy and public management. After earning his Master's degree from Harbin University of Science and Technology, he has taken up a significant role at the School of Finance and Public Management at Harbin University of Commerce. Here, his research efforts delve into the intricacies of fiscal policy's impact on public administration and governance. Li's work aims to contribute to the understanding and improvement of financial management practices within the public sector, reflecting a deep commitment to enhancing fiscal policies for better governance and societal benefit.