China carbon neutrality target: Revisiting FDI-trade-innovation nexus with carbon emissions

Liu, Xiaowei; Wahab, Salman; Hussain, Mumtaz; Sun, Yi; Kırıkkaleli, Derviş

doi:10.1016/j.jenvman.2021.113043

Cited by 117 publications

(46 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For example, the FDI decreased emissions in less-developed countries (Zeng and Eastin 2012 ), ASEAN-5 countries (Zhu et al 2016 ), and OECD countries (Marques and Caetano 2021 ). In contrast, Liu et al ( 2021b ) confirmed that FDI positively affected China’s emissions. However, they argued that the positive impact of FDI on emissions was smaller in provinces with more innovation.…”

Section: Discussionmentioning

confidence: 95%

A nexus study of carbon emissions and financial development in China using the decoupling analysis

Yuan

Liao

Wang

2022

Environ Sci Pollut Res

View full text Add to dashboard Cite

Investigating the linkage between financial development ( FD ) and carbon emissions is important for mitigating climate change. Nevertheless, there is a scarcity of studies investigating how carbon emissions decouple from FD . Here, we investigate the relationship between FD and carbon emissions by using the decoupling model based on cross-province data of China during 2000–2019. Then, we use the decomposition method to analyze the nine drivers of decoupling elasticity of FD and CO 2 emissions. We found that China experienced weak decoupling and strong negative decoupling in most years. Only the finance develops at a very high level; the FD had spare capacities to promote the reduction in the carbon emissions. For example, several developed provinces (e.g., Tianjin, Zhejiang, Guangdong) realized strong decoupling after 2012. The reduction in energy intensity and the increase of foreign direct investment promoted the decoupling of FD from carbon emissions. During the financial recession period, developing a bank-based financial market helped the emissions reduction. Once financial crisis is overcome, developing a market-based financial market promoted the decoupling of FD from emissions. This is because that with the fast FD , the development of stock market contributed to emission reductions through technological improvement, while the bank loans inhibited the decoupling process through the expansion of capital-labor inputs. Overall, these results help in the assessment of the emissions impacts of FD and in addressing climate change problems.

show abstract

Section: Discussionmentioning

confidence: 95%

A nexus study of carbon emissions and financial development in China using the decoupling analysis

Yuan

Liao

Wang

2022

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…For example, the FDI decreased emissions in less-developed countries (Zeng et al, 2012), ASEAN-5 countries (Zhu et al, 2016) and OECD countries (Marques et al, 2021). In contrast, Liu et al, (2021b) confirmed that FDI positively affected China's emissions. However, they argued that the positive impact of FDI on emissions was smaller in provinces with more innovation.…”

Section: Comparison With Previous Studiesmentioning

confidence: 86%

A nexus study of carbon emissions and financial development in China using the decoupling analysis

Yuan

Liao

Wang

2022

Preprint

View full text Add to dashboard Cite

Investigating the linkage between financial development (FD) and carbon emissions is important for mitigating climate change, nevertheless, how carbon emissions decouple from FD is still unclear. Here, we investigate the relationship between FD and carbon emissions by using the decoupling model based on cross-province data of China during 2000–2019. Then we use the decomposition method to analyze the nine drivers of decoupling elasticity of FD and CO2 emissions. We found that China experienced weak decoupling and strong negative decoupling in most years. Only the finance develops at a very high level, the FD had spare capacities to promote the reduction in the carbon emissions. For example, several developed provinces (e.g., Tianjin, Zhejiang, Guangdong) realized strong decoupling after 2012. The reduction in energy intensity and the increase of foreign direct investment promoted the decoupling of FD from carbon emissions. During the financial recession period, developing a bank-based financial market helped the emissions reduction. Once financial crisis is overcome, developing a market-based financial market promoted the decoupling of FD from emissions. This is because that with the fast FD, the development of stock market contributed to emission reductions through technological improvement, while the bank loans inhibited the decoupling process through the expansion of capital-labor inputs.

show abstract

“…According to the results, RETI tends to enhance environmental pollution in high-income inequality gab. Liu et al ( 2021 ) used Chinese data of from 1995 to 2017 to investigate the impact of FDI, technology, renewable energy, and commerce on environmental degradation in China. The findings suggest that GDP and FDI had a positive effect on CO 2 emissions, whereas renewable energy and technology have a negative effect on carbon emissions.…”

Section: Literature Reviewmentioning

confidence: 99%

Investigating possibility of achieving sustainable development goals through renewable energy, technological innovation, and entrepreneur: a study of global best practice policies

Philip

Emir²,

Udemba

2022

Environ Sci Pollut Res

View full text Add to dashboard Cite

This study is anchored on the global best practice policies for achieving sustainable goals for Malaysia. Malaysia is among the countries that made commitment at 2015 United Nations Climate Change Conference to reduce its carbon emissions by 2030. This is expected to contribute to the country’s sustainable development. Malaysian quarterly data of 1992Q1–2019Q4 with relevant policy-based instruments (renewable energy policy, technological innovations, financial development, and entrepreneur activities) are adopted in our study for explicit and clear insight on the subject. Different scientific and analytical methods are equally applied in this study, but the focus and emphasis are laid on the findings from linear (dynamic ordinary least square, DOLS) and non-linear autoregressive distributed lag (NARDL) and Granger causality. Findings from both NARDL and DOLS confirmed the positive shocks of renewable energy policy, technological innovations, financial development, and entrepreneur activities are mitigating carbon emissions. Also, inverted U shape of EKC hypothesis is found for Malaysia. Findings from Granger causality support the findings from both estimates by establishing both feedback and unidirectional causal nexus among the instruments. From the finding myms, policy-based instruments are mitigating carbon emissions in Malaysia; thus, it will be a very good idea to frame policies around these instruments.

show abstract

China carbon neutrality target: Revisiting FDI-trade-innovation nexus with carbon emissions

Cited by 117 publications

References 47 publications

A nexus study of carbon emissions and financial development in China using the decoupling analysis

A nexus study of carbon emissions and financial development in China using the decoupling analysis

A nexus study of carbon emissions and financial development in China using the decoupling analysis

Investigating possibility of achieving sustainable development goals through renewable energy, technological innovation, and entrepreneur: a study of global best practice policies

Contact Info

Product

Resources

About