Exploring carbon emissions, economic growth, energy and R&D investment in China by ARDL approach

Abstract

This paper examines the causal relationship among economic growth, energy structure, R&D investment and carbon emission in China by using autoregressive distributed lag bounds testing approach of cointegration during the period of 1990 -2011. In order to examine this linkage, theauthors use the two-step procedures. Firstly, theauthors conducted the unit root tests to measure whether the single integrated of time series is not more than 1. Secondly, theauthors explore the long-run relationships between the variables by using ARDL bounds testing approach complemented by Johansen-Juselius maximum likelihood procedure in a multivariate framework. The findings are as follows:when carbon emissions and economic growth, respectively, are the dependent variable, the other independent variables show the long-term stability cointegration relationship of the dependent variable. Whether in the short-run or long-run relationship, the impact of economic growth and R&D investment on carbon emission is not statistically significant. In the long term and short term relationships, carbon emissions have a positive impact on the economic growth. However, energy structure has a negative impact on the economic growth.The decrease in energy structure will cause carbon emissions reduction and boost economic growth in both the long-run and short-run period.Therefore, China's government should give more attention to the optimization of energy structure and make a reasonable and feasible energy saving policy.

Macro-economic and development indexes and ISO14001 certificates: a cross national analysis

“…In this case our paper does not support the current literature of EKC in BRICS countries. In fact, as described in the literature review, some authors (Honglei et al, 2011;Xuemei et al, 2011;Zhai and Song, 2013) found a simultaneous increase in economic parameters and a decrease in pollution in China. According to these studies, China was positioned in the second half of the curve, the section with a negative inclination and not in the first half as according to our results.…”

“…Other studies have not found a positive relationship between GDP and improved environmental quality. Zhai and Song (2013) investigated the causal relationship in China between economic growth, energy structure, R&D investments, and carbon emissions. They found that the impact of economic growth and R&D investments on carbon emissions was insignificant both in the long and short term.…”

Assessing the spillover effects of research and development and renewable energy on CO2 emissions: international evidence

“…This implies that, although advanced technologies might improve resource-use efficiency, their economic scale also quickly grows, demanding more natural resource inputs, resulting in higher CO 2 emissions (Cheng et al, 2019). (Zhai & Song, 2013) discover that R&D had no discernible influence on China's long-and shortterm CO 2 emissions. According to (Cheng et al, 2019), technological innovations had a negligible effect on CO 2 emissions in OECD countries, but the effects were positive in countries with moderate CO 2 emission levels.…”

An Empirical Research on the Relationship Between Renewable Energy Investment and Low Carbon Growth in China

“…Sim [27] studied the economic and environmental value of renewable energy investments, with the conclusion that the government should increase renewable energy subsidies and investment, and should also reevaluate its R&D investment strategy to reduce carbon emissions. Zhai and Song [28] also conducted a similar study on China and found that there is no causal relationship between the impact of economic growth and investment in renewable energy on carbon emissions, regardless of the short-term or long-term relationship. However, the reduction of carbon emissions caused by the development of renewable energy has a negative impact on the economy.…”