China’s Sustainable Development under Climate, Energy and Policy Uncertainty: A Focus on SDG 7 and SDG 13

Abstract

This paper contributes to the literature through a focus on the case of China and an investigation into the effects that CPU, EPU, and EUI variables have upon SDG 13 and SDG 7 through using ARDL and NARDL models along with the Dynamic Multipliers Effect Test. The analysis period includes annual data from 2003 to 2022. In the case of this study, from the literature review, some readily available studies measured the impact of China’s CPU, EPU, and EUI on the SDGs. It has also been observed that the degree of investigation on the effects of CPU on SDG 13 and SDG 7 has been shallow. Based on the results, the constructed SDG 7 and SDG 13 ARDL and NARDL models strongly validate the cointegration relationships among the taken variables. The test of symmetric effects on CPU in SDG13 from the results of the NARDL shows that the coefficients for LCPUpoz andLCPUneg are positive, which means the effects of positive shocks are more dominant. Additionally, to ensure model robustness, three parametric methods—Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Canonical Cointegration Regression (CCR) are utilized. According to results, CPU, EPU and EUI have a substantial impact on the SDG7 and SDG13 indices.