Hydrogen energy trading networks in China: Economic viability, technological advancements, and environmental sustainability

Abstract

This paper discusses the feasibility, technological progress, and environmental concerns of hydrogen-based energy trading networks in China from the energy security perspective. Based on the annual data from 1991 to 2019, we examined the role of critical factors such as population growth, energy consumption, technological advancement, and energy security in China's economic growth. Our empirical estimations involved using the short-term GMM estimator based on cross-sectional dependency and the second-generation estimator based on annual data, combined with the DOLS, FMOLS, and GLS estimators for long-term estimation. The study shows that energy security and technological developments in hydrogen energy can enhance economic growth as the projection of GDP growth rate rises 1.8% per unit increase in energy security. On the other hand, growth is an issue of population, reducing the possible economic growth by around 0.7% points a year. According to the above findings, the Chinese government should devise and implement political and market mechanisms that can effectively promote the efficiency of the segmented system in hydrogen energy systems, the popularization of low-carbon technology, and the provision of sustainable energy sources for worldwide economic development and the Chinese growth model.