How China is fostering sustainable growth: the interplay of green investment and production-based emission
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RESEARCH ARTICLE
How China is fostering sustainable growth: the interplay of green investment and production-based emission Lei Wang 1 & Chi-Wei Su 2 & Shahid Ali 3 & Hsu-Ling Chang 4 Received: 24 March 2020 / Accepted: 29 June 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract To mitigate environmental problems and to achieve sustainability, China is striving to transition to low-carbon urban economies. Among several significant steps, the country has made remarkable success in controlling the emissions from transportation, buildings, and energy by shutting down or relocating several polluting industries. This study contributes to the issue of sustainable growth debate using time series data from China for the period 1998–2017 and empirically examines the effects of green investment and renewable energy consumption on production-based carbon emissions for China. The strength of this study is that it tested some new variables such as production-based carbon emissions and green investment. Using autoregressive distributed lag model (ARDL) cointegration technique, we found that production-based emission and its determinants move together in the long run. The study found that green investment and renewable energy consumption are both helpful in controlling productionbased carbon emissions, while trade openness increases production-based carbon emissions. Hence, green investment and renewable energy consumption contribute to the achievement of sustainable growth. Moreover, based on a robustness check, human capital, financial development, and environment-specific technological innovation are found to be helpful in curbing production-based carbon emissions. Our study recommends financial technology (fin-tech), green investment, and public-private partnership investment in renewable energy to mitigate the effect of production-based carbon emissions. Keywords Environment-specific technological innovation . Financial technology . Green investment . Public-private partnership . Renewable energy . China
Introduction Responsible Editor: Eyup Dogan * Hsu-Ling Chang [email protected] Lei Wang [email protected] Chi-Wei Su [email protected] Shahid Ali [email protected] 1
School of Business Administration, Shandong Women’s University, Jinan 250300, People’s Republic of China
2
School of Economics, Qingdao University, Qingdao 266000Shandong Province, People’s Republic of China
3
Department of Economics & Development Studies, University of Swat, Saidu Sharif, Khyber Pakhtunkhwa 19130, Pakistan
4
Department of Accounting and Information, Ling Tung University, Taichung City, Taiwan
The achievement of sustainable growth is the primary concern of the future of humanity, which requires strategies to reduce greenhouse gas emissions. Carbon dioxide (CO2) emissions are considered as one of the critical factors affecting sustainable growth (IPCC 2014). Since the Industrial Revolution, the continuous increase in world output has resulted in global environmental degradation, which is the prim
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