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China’s investment in energy industry to neutralize carbon emissions: evidence from provincial data
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China’s investment in energy industry to neutralize carbon emissions: evidence from provincial data
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Journal Article
China’s investment in energy industry to neutralize carbon emissions: evidence from provincial data
2022
Overview
Investment in the new energy industry (IEI) and industrial pollution prevention (IPP) is an emerging strategy for carbon neutrality. However, little attention has been paid to exploring its direct linkage with environmental degradation. Therefore, the present study is an effort to contribute to a thin body of literature by recruiting IPP and IEI in China’s provincial-level carbon emissions (CO
2
). With the use of the latest maximum data from 1998 to 2017, the long-run relationships are estimated through “augmented mean group estimator (AMG), panel fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), and Pairwise Dumitrescu Hurlin (DH) Panel Causality Tests.” According to the above-stated econometric techniques, IEI and IPP negatively affect CO
2
emissions, which means the reduction in environmental degradation. The study also validates the environmental Kuznets curve (EKC) hypothesis for 30 provinces of China. Additionally, IPP shows the long-run unidirectional causal relationship with CO
2
emissions, while income level has a bidirectional causal relationship with CO
2
emissions. Findings have robust policy implications for China’s provinces.
Publisher
Springer Berlin Heidelberg,Springer Nature B.V
