This article examines the impact of reasonable use of energy resources, enhanced energy resource efficiency, and reduced energy costs on SDGs. The mediating effect of improved energy efficiency on the nexus of reasonable use of energy resources, enhanced energy resource efficiency, reduced energy costs, and the SDGs of the manufacturing industry in China are also investigated. The study takes three predictors of reasonable use of energy resources (RUER) from Cheng, Fu and de Vreede (2018), five predictors of enhanced energy resources efficiency (EERE) from Cheng et al. (2018), and four predictors of reduced energy costs (REC) from Sung, Kim and Lee (2018). The mediator instrument (IEEE) is adopted from Tan, Ooi and Goh (2017), and, finally, the sustainable development goals (SDG) are taken as the dependent variable, using six items taken from Noordin and Sulaiman (2010). Table 1 shows the variables and measurements.

The study uses the primary data collection method of questionnaires to collect data from selected respondents. Questionnaire is the best method of data collection to examine the behavior of respondents (Mazhar, Anjum, Anwar & Khan, 2021). The respondents chosen are managers of manufacturing companies, selected using simple random sampling. A total of 50 manufacturing companies were selected, and approximately five to ten managers from each organization were approached, amounting to approximately 360 managers, and 525 questionnaires were sent using personal visits and mail. After a few days, 357 valid surveys were received and used for analysis, representing an approximately 68% response rate.

The study employed Smart-PLS to check the reliability of the items and test the associations among the variables. The PLS-SEM analysis provides the best results, even though the researchers use a complex model and large sample size (Hair et al., 2021; Inegbedion et al., 2021). Smart-PLS is the best estimation tool for primary data analysis (Hair, Risher, Sarstedt & Ringle, 2019). and assesses the item reliability using a measurement model assessment (Ammad, Alaloul, Saad & Qureshi, 2021; Dankiewicz, Ostrowska-Dankiewicz & Bulut, 2020). The item reliability is checked using convergent validity measures such as Cronbach's alpha, factor loadings, average variance extracted (AVE), and composite reliability (CR) (Al Mamun, Muniady & Nasir, 2021; Purwanto & Sudargini, 2021; Sharma, 2020). In contrast, the variable reliability is checked using discriminant validity measures such as Fornell Larcker, cross-loadings, and the heterotrait monotrait (HTMT) ratio (Mah, Ali & Zawawi, 2018). The structural model assessment is used to examine the association between variables (Bierwiaczonek, Gawron, Pyka & Suchacka, 2020; Sarstedt et al., 2020), while the direct path test exposes the direct associations among predictors and predictive variables, and the indirect path test exposes the mediation analysis among the constructs (Al-Emran, Mezhuyev & Kamaludin, 2018). Fig. 2 shows the variables in the theoretical model.

Fig. 2.

Research framework.

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The results show convergent validity which exposes the associations among the items. The item reliability is checked using convergent validity measures such as Cronbach's alpha, factor loadings, AVE, and CR. The results show alpha and CR values bigger than 0.70, and loadings and AVE values larger than 0.50. These values indicate a high correlation among the items and convergent validity. These values are given in Table 2.

The results show discriminant validity which exposes the association among the variables. The variable reliability is checked using discriminant validity measures such as Fornell Larcker, cross-loadings, and the HTMT ratio. Fornell Larcker shows that the first value in the column, the association with the variable itself, is greater than the other values, correlation with other variables. Moreover, the values show that the discriminant validity is acceptable as it satisfies the benchmark These values are given in Table 3.

The cross-loading results indicate that the values that show association with the variable are larger than other values that show association with other variables. Therefore, the correlation among the variables is low, which is a good sign, and also the values of validity are acceptable. These values are given in Table 4.

The HTMT ratio results show that the values of the ratios are lower than 0.85, indicating low correlation among the variables and discriminant validity. These values are given in Table 5.

The structural model assesses the associations among the variables, and the results of the direct path reveal that reasonable use of energy resources, enhanced energy resource efficiency, and reduced energy costs have positive linkages with SDG for the manufacturing industry in China. Thus, H1, H2, and H3 are accepted. The results indicate that if there were a 1% change in EERE, the SDG would increase by 0.621%, and vice versa. The results also show that if there were a 1% change in REC, the SDG would increase by 0.163%, and vice versa. Moreover, a 1% change in RUER, would increase SDG by 0.118%, and vice versa. Finally, a 1% change in IEE, would increase SDG by 0.128%, and vice versa. These relationships are presented in Table 6.

The structural model also assesses the indirect associations among the variables and the results of the indirect path show that improved energy efficiency mediates the linkages of reasonable use of energy resources, enhanced energy resource efficiency, reduced energy costs, and the SDGs of the manufacturing industry in China. Therefore, H4, H5, and H6 are accepted. These relationships are presented in Table 7.

The study results indicate that the sharing economy benefit of reasonable use of energy resources, has a positive association with SDG achievement. This result is supported by Govindan et al. (2020), who show that, in a sharing economy, two or more individuals or companies collectively or cooperatively use resources (natural, physical, and human). When more entities share energy resources, any misuse, stealing, or illegal use can be checked and overcome. Reasonable use of energy resources helps achieve SDGs in areas such as health, social welfare, inequality reduction, and climate action. Hence, the reasonable use of energy resources in a sharing economy improves sustainable development. These results are supported by Laukkanen and Tura (2020), who shed light on the reasonable use of energy resources as an advantage of a sharing economy with a role in achieving SDGs. According to the study, the adoption of a sharing economy gives various individuals and corporations the right to equally and appropriately use energy resources. This meets the needs of the majority of the public and, with a reduction in the misuse or excessive use of energy resources, saves the environment from polluting effects. In addition, the study outcome, that reasonable use of energy resources has a positive association with SDG achievement, is similar to the findings of Shereni (2019), who shows that a sharing economy improves the reasonable use of energy and helps achieve SDGs.

The study results indicate that the sharing economy benefit of enhanced energy resource efficiency has a positive association with SDG achievement. This result is supported by Leung, Xue and Wen (2019), who show that, in a sharing economy, technologies, logistics, and infrastructure are shared by users, and thus, energy resources decrease. This decrease in the use of unclean energy reduces the adverse impacts of domestic and economic practices on the environment, such as oil degradation, unclean water, air pollution, and loss of livestock. This promotes sustainable development within the country. These results are consistent with Plewnia and Guenther (2018), who reveal that, in countries with sharing economies, a socioeconomic concept is employed in domestic economic activities, and the aggregate consumption of energy resources is decreased. As energy is a great source of environmental deterioration and a threat to sustainable development, enhanced energy resource efficiency helps the country achieve its SDGs. These results validate the findings of Ma, Lan, Thornton, Mangalagiu and Zhu (2018), who state that a sharing economy reduces the ownership of resources or processes which require energy. The enhanced efficiency of energy resources leads to SDG achievement. Moreover, this result matches that of past studies such as Boar et al. (2020), which reveal that the sharing economy improves energy resource efficiency, which helps achieve SDGs.

The results reveal that the sharing economy benefit of reduced energy costs is positively correlated with SDG achievement. This result is supported by Hu, Liu, Yuen, Lim and Hu (2019), who find that a sharing economy is a source of cost reduction for business organizations which enables them to increase profitability. These increased profits can be used to mitigate environmental impacts, carry out research and development activities for innovation, or increase the scope of business activities. The reduction of pollution, innovation, and industrial growth are SDGs. These results agree with the study of Pouri and Hilty (2018), who state that in a sharing economy, people or corporations do not buy all their resources but rent them from peers. They can overcome the costs of resources and, similarly, rent out the resources in their ownership to save money. The saved costs of the sharing economy can be used to reach the goals of sustainable development. These results are consistent with Sung et al. (2018), who highlight the major advantage of a sharing economy, reducing the cost of access to resources. On one hand, owners save money by renting out resources during idle time, and on the other, people who could not afford resources have access to them. Both parties spend the saved resources on the economic development and growth which is part of the SDGs. The current study shows that reducing energy costs has a positive association with the achievement of SDG, similar to the findings of Olabi et al. (2022), who show that a sharing economy reduces the costs of energy and helps achieve SDGs.

The results show that improved energy efficiency is a mediator between sharing economy benefits, such as a reasonable use of energy resources, and SDG achievement. These findings agree with Gössling and Hall (2019), who suggest that improved energy efficiency is helpful to almost all SDGs, as it guarantees a clean environment by which SDGs are directly or indirectly affected. Energy efficiency is also improved by reasonable use of energy resources. Hence, this study shows a mediating impact of improved energy efficiency on the association between reasonable use of energy resources and SDG achievement. These results are in line with Ciulli and Kolk (2019), who show that, by applying a sharing economy, the misuse of energy resources such as natural gas, oil, coal, biomass, and ethanol is far less. Thus, energy resources that are limited in quantity in any region are not wasted, and thus, energy efficiency improves the economy. Any improvement in energy efficiency within an economy leads the economy towards sustainable development.

The results indicate that improved energy efficiency is a mediator between the sharing economy benefit of enhanced efficiency of energy resources and SDG achievement. This result agrees with Curtis and Mont (2020), who suggest that, in a sharing economy, technologies, logistics, and infrastructure are used in cooperation with other individuals or businesses. As these resources are useful to all parties, everyone looks after the quality of the resources. As a result, the efficiency of the energy resources increases, meeting greater energy needs with less resources and having fewer negative impacts on the environment, society, and economy. Thus, the achievement of SDGs becomes easier. The results show that improved energy efficiency is a mediator between the sharing economy benefit of reduced energy cost and SDG achievement. This result agrees with Eckhardt et al. (2019), who say that, when technologies or processes are shared with others, the costs of the energy resources are distributed, and earnings increase. Reduced costs and enhanced profits improve the technologies’ capacities to work with minimum energy, and energy efficiency plays a significant role in achieving the SDGs which are based on environmental quality.

The current study has theoretical implications that add to the literature on SDGs, the main focus of the study. The study sheds light on sharing efficiency and its role in achieving SDGs. The study analyses three sharing economy benefits: reasonable use of energy resources, enhanced efficiency of energy resources, and reduced energy costs, and their impact on SDG achievement. In the literature, the sharing economy and its relation to SDG achievement is the subject of many studies, and many authors look at its advantages for economists and individuals. However, the individual benefits of a sharing economy and its impact on SDG achievement have been paid less attention. The present study differentiates itself by exploring sharing economy benefits such as reasonable use of energy resources, enhanced efficiency of energy resources, and reduced energy costs individually in relation to SDG achievement. Previous studies deal with improved energy efficiency as an advantage of a sharing economy as a determinant of SDG achievement. However, improved energy efficiency is not taken as a mediator between sharing economy benefits and SDG achievement. The current study examines improved energy efficiency as a mediator between the sharing economy benefits of reasonable use of energy resources, enhanced efficiency of energy resources, reduced energy costs, and SDG achievement.

The current study can guide policymakers to develop policy that improves the sharing economy and enhances SDG achievement. Over time, the world is becoming more populous. In any country, the increase in population causes an increase in both the domestic and economic use of natural resources, including energy. The exponential increase in economic activity and the wide use of natural resources reduces the quantity of those resources and damages the natural environment, adversely affecting future development. Under these circumstances, this study presents a substantial guideline, as it addresses the issue of energy usage with a detailed description of how energy resources can be reduced or made more efficient, and how SDGs can be achieved. This study guides economists, environmental regulators, and commissions formed for sustainable development, to design policies to encourage a sharing economy for the achievement of SDGs. The article provides guidelines for regulators regarding SDG achievement using a sharing economy. This study shows that SDGs can be achieved with the incorporation of a sharing economy, which has benefits including the reasonable use of energy resources, enhanced efficiency of energy resources, and reduced energy costs. The study reveals that, through a sharing economy with the benefits of reasonable use of energy resources, enhanced efficiency of energy resources, and reduced energy costs, energy efficiency can be improved, which assures SDG achievement.

China is the world's most populous country. Although the country is rich in natural resources, including energy resources (oil, coal, gas, biomass, and biofuel), natural resource consumption is greater, and the environmental impacts are severe. Under this conditions, future development is uncertain. The current study focuses on the conditions in China and the achievement of SDGs. The study's main objective is to trace the impacts of sharing economy benefits, such as reasonable use of energy resources, enhanced efficiency of energy resources, and reduced energy costs, on the achievement of SDGs. One objective is to explore the mediating role of improved energy efficiency in the sharing economy benefits of reasonable use of energy resources, enhanced efficiency of energy resources, reduced energy costs, and SDG achievement. A research survey of manufacturing organizations in China provides quantitative evidence for the interrelationship of the sharing economy benefits of reasonable use of energy resources, enhanced energy resources, reduced energy costs, improved energy efficiency, and SDG achievement.

In addition, the study findings show that a sharing economy encourages the reasonable use of energy resources. The suitable use of energy resources, without wasting or misusing them, improves equality, the environment, health, welfare, life on land and underwater, and consistency in economic progress. In a sharing economy, energy resources are used by several users. The efficient and optimal use of energy resources keeps the environment (air, land, water), and the health of living organisms safe, and thus helps to achieve SDGs. The study implies that one major benefit of a sharing economy is reducing energy costs, which increases the funds available for achieving SDGs. The study suggests that sharing economy benefits, such as reasonable use of energy resources, enhanced efficiency of energy resources, and reduced energy costs, improve energy efficiency, which assists in achieving SDGs.

There are several limitations to this study, which, it is hoped, can be addressed by future studies. This study addresses only the sharing economy benefits of reasonable use of energy resources, enhanced energy resource efficiency, and reduced energy costs. For a more comprehensive and valid study, the analysis of more of the elements that can affect SDG achievement would be necessary. Likewise, the findings of this study are based on the content of the questionnaires and the information drawn from them. The extent and quantity of the information obtained determines the validity of the nexus addressed. For more reliability and validity, future authors could adopt other methods to acquire and analyze data. Moreover, future studies could also analyze improved energy efficiency as a moderator of sharing economy benefits such as reasonable use of energy resources, enhanced efficiency of energy resources, reduced energy costs, and SDG achievement.