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The Effect of Human Capital on CO2 Emissions: Macro Evidence from China

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  • Yao Yao, Lin Zhang, Ruhul Salim, and Shuddhasattwa Rafiq

Abstract

We study the effect of human capital on CO2 emissions using the Chinese provincial panel over the period 19972016. Allowing for cross-sectional dependence and structural breaks, we find a negative association between human capital and CO2 emissions in the long run and attribute it to the influences from younger workers and workers with advanced human capital. In particular, our results suggest that a one-year increase in average schooling reduces CO2 emissions by 12 per cent. Using disaggregated emission dataset by energy sources and end emitters, we demonstrate this negative association is likely to manifest through technology effect and the improvement in energy efficiency. These manifestations are limited to production sector. Our finding suggests a promising avenue for abating greenhouse gases without impeding economic growth.

Suggested Citation

  • Yao Yao, Lin Zhang, Ruhul Salim, and Shuddhasattwa Rafiq, 2021. "The Effect of Human Capital on CO2 Emissions: Macro Evidence from China," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    • Handle: RePEc:aen:journl:ej42-6-zhang
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    2. Jin, Wei & Shi, Xunpeng & Zhang, Lin, 2021. "Energy transition without dirty capital stranding," Energy Economics, Elsevier, vol. 102(C).
    3. Pata, Ugur Korkut & Ertugrul, Hasan Murat, 2023. "Do the Kyoto Protocol, geopolitical risks, human capital and natural resources affect the sustainability limit? A new environmental approach based on the LCC hypothesis," Resources Policy, Elsevier, vol. 81(C).
    4. Aimin Li & Qiang Hu, 2024. "The Carbon Emission Reduction Effects of the Quality and Quantity of R&D Activities: Evidence from Chinese Provinces," Sustainability, MDPI, vol. 16(10), pages 1-18, May.
    5. Gaganis, Chrysovalantis & Galariotis, Emilios & Pasiouras, Fotios & Tasiou, Menelaos, 2023. "Managerial ability and corporate greenhouse gas emissions," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 438-453.
    6. Feng, Shaohuai & Mohd Shafiei, Mohd Wira & Ng, Theam Foo & Ren, Jie, 2024. "Unlocking the potential of natural resources, fintech and fiscal policy for carbon neutrality; evidence from N-11 nations," Resources Policy, Elsevier, vol. 98(C).
    7. Awaworyi Churchill, Sefa & Inekwe, John & Ivanovski, Kris & Smyth, Russell, 2023. "Human capital and energy consumption: Six centuries of evidence from the United Kingdom," Energy Economics, Elsevier, vol. 117(C).

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