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Causal relationships between carbon dioxide emissions and economic factors: Evidence from China

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  • Mei Ling Wang
  • Wei Wang
  • Shen Yue Du
  • Cun Fang Li
  • Zhengxia He

Abstract

This study investigates the causal relationship between carbon dioxide (CO2) emissions and economic factors in Chinese provinces. Then, this study undertakes a comparative analysis of the eastern, central, and western provinces using a vector autoregressive model and panel data for 1997–2015. The results show there is unidirectional causality from per capita gross domestic product (GDP) to CO2 emissions in eastern and central provinces. Meanwhile, there is unidirectional causality from CO2 emissions to GDP per capita in western provinces. There is unidirectional causality between CO2 emissions to foreign direct investment in central and western provinces but no impact in eastern provinces. However, there is unidirectional causality between CO2 emissions to export volume only in eastern provinces. Based on the results, this study concludes that to reduce CO2 emissions, China should not only implement strict laws and regulations but should also advocate green investment, technological innovation, development of a circular economy, and sustainable development.

Suggested Citation

  • Mei Ling Wang & Wei Wang & Shen Yue Du & Cun Fang Li & Zhengxia He, 2020. "Causal relationships between carbon dioxide emissions and economic factors: Evidence from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(1), pages 73-82, January.
    • Handle: RePEc:wly:sustdv:v:28:y:2020:i:1:p:73-82
    DOI: 10.1002/sd.1966
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    1. Tara Vanli, 2024. "Can systemic governance of smart cities catalyse urban sustainability?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23327-23384, September.
    2. Gong, Zhonghang & Wu, Yuqin & Tawiah, Vincent & Abdulrasheed, Zakari, 2023. "The environmental footprint of international business in Africa; The role of natural resources," Resources Policy, Elsevier, vol. 80(C).
    3. Fuzhong Chen & Guohai Jiang & Kangyin Dong, 2022. "How do FDI inflows curvilinearly affect carbon emissions? Threshold effects of energy service availability and cleanliness," Australian Economic Papers, Wiley Blackwell, vol. 61(4), pages 798-824, December.
    4. Xingwei Li & Yicheng Huang & Xiangxue Li & Xiang Liu & Jingru Li & Jinrong He & Jiachi Dai, 2022. "How does the Belt and Road policy affect the level of green development? A quasi-natural experimental study considering the CO2 emission intensity of construction enterprises," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    5. Claudia Diana Sabău-Popa & Diana Claudia Perțicaș & Adrian Florea & Luminița Rus & Hillary Wafula Juma, 2024. "Is Younger Population Generating Higher CO 2 Emissions? A Dynamic Panel Analysis on European Countries," Sustainability, MDPI, vol. 16(17), pages 1-20, September.
    6. Claire Emilienne Wati Yameogo & Rizwan Mushtaq & Muhammad Wasif Zafar & Syed Anees Haider Zaidi & Mamdouh Abdulaziz Saleh Al‐Faryan, 2024. "Impact of globalisation, remittances and human capital on environmental quality: Evidence from landlocked African countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3469-3486, July.
    7. Andrew Adewale Alola & Seyi Saint Akadiri & Ojonugwa Usman, 2021. "Domestic material consumption and greenhouse gas emissions in the EU‐28 countries: Implications for environmental sustainability targets," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 388-397, March.
    8. Daniel Balsalobre-Lorente & Nuno Carlos Leitão & Festus Victor Bekun, 2021. "Fresh Validation of the Low Carbon Development Hypothesis under the EKC Scheme in Portugal, Italy, Greece and Spain," Energies, MDPI, vol. 14(1), pages 1-17, January.
    9. Arshian Sharif & Najia Saqib & Kangyin Dong & Syed Abdul Rehman Khan, 2022. "Nexus between green technology innovation, green financing, and CO2 emissions in the G7 countries: The moderating role of social globalisation," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1934-1946, December.
    10. Abbasi, Kashif Raza & Hussain, Khadim & Redulescu, Magdalena & Ozturk, Ilhan, 2021. "Does natural resources depletion and economic growth achieve the carbon neutrality target of the UK? A way forward towards sustainable development," Resources Policy, Elsevier, vol. 74(C).
    11. Yufeng Wang & Shijun Zhang & Luyao Zhang, 2023. "The Impact of Location-Based Tax Incentives and Carbon Emission Intensity: Evidence from China’s Western Development Strategy," IJERPH, MDPI, vol. 20(3), pages 1-23, February.
    12. Muhammad Wasif Zafar & Asif Saeed & Syed Anees Haider Zaidi & Abdul Waheed, 2021. "The linkages among natural resources, renewable energy consumption, and environmental quality: A path toward sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 353-362, March.

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