This study aims to analyze the asymmetric relation between renewable energy consumption and CO₂ emissions in China using the STIRPAT-Kaya-EKC framework. To delve into the asymmetric effect of renewable energy consumption on the environment, the non-linear ARDL model is used. The results of this study confirm the asymmetric impact of renewable energy on the environment in the long run as well as in the short run. However, the negative shocks to renewable energy have a greater detrimental influence on the environment than the benign effect due to the positive shock to renewable energy. Population growth affects the environment in the short run, whereas technology only affects environment quality in the long run. Moreover, the study supports the EKC theory in China. This research emphasizes that the administration can improve the economy’s lifespan by allocating substantial funds to establish legislation to maintain a clean environment by subsidizing renewable energy infrastructure and research and innovations for low-carbon projects.

Due to resource scarcity, high energy demand, and environmental degradation, China’s rapid economic growth over the past three decades has been accompanied by certain serious issues that require quick attention. The excessive use of fossil fuels worsens the ecosystem and raises the level of carbon in the atmosphere. However, the use of ICT has affected the behavior of energy use in various sectors differently. Although ICT-induced activities, on one hand, may affect the environment positively by reducing energy consumption, on the other hand, they may affect the environment adversely by causing an energy rebound effect. Therefore, this study aims to investigate the nonlinear impact of ICT on the environmental effects of energy consumption in the residential, transport, and industrial sectors in China. The study used threshold regression for empirical analysis by employing data for the period from 1990 to 2021. ICT is used as a threshold variable, while energy consumption in the residential, industrial, and transport sectors is used as a regime-dependent variable. Based on the findings, we deduce that the use of ICT asymmetrically affects sectoral energy consumption and the empirical result varies across sectors. Based on the results, we recommend that the possibility of rebound effects should be given more attention in the development of policies regarding the digitalization of the sectors.