Race to achieving sustainable environment in China: Can financial globalization and renewable energy consumption help meet this stride?

Abstract

Investigating the drivers of CO2 emissions is essential for limiting global warming, which has sparked widespread concern. This study evaluates the association between economic complexity and CO2 emissions in China, considering the effect of disintegrated energy and financial globalization on the environmental function between 1970 and 2018. This dataset was analyzed using the autoregressive lag model (ARDL) and frequency-domain causality approaches. The ARDL unveiled that urbanization, economic complexity, financial globalization, and economic growth deteriorate the environment while environmental sustainability is achieved through renewable energy utilization. The study also validates the Environmental Kuznets Curve hypothesis. Also, the frequency-domain causality disclosed that all regressors (economic growth, financial globalization, economic complexity, and urbanization) could forecast CO2 emissions in China at different frequencies. Based on these outcomes, policy recommendations are formulated.

Digitization Meets Energy Transition: Shaping the Future of Environmental Sustainability

“…Contemporary academic literature, spanning a broad spectrum of disciplines, underscores the significance of integrating variables such as provincial GDP, technology development, foreign direct investment, trade openness, urbanization, and industrialization into the analytical framework. Llorca and Meunié [130], Hung [131], Adebayo et al [132], and Hao and Peng [133] highlighted the necessity of considering provincial GDP and foreign direct investment, as these economic indicators not only mirrored the financial health and investment landscapes of regions but also profoundly influenced their energy consumption and emission profiles. Concurrently, Li et al [134], Pata and Caglar [135], and Ang [136] underscored the role of technological advancement and trade openness, elucidating how these factors facilitated or impeded the adoption of sustainable practices and green technologies, thereby impacting emissions.…”

Role of Research and Development Budgets and Socio-economic Conditions for Greener Energy Transition in Emerging Economies: Do Internal and external conflicts matter?

“…Financial globalization tends to deteriorate environmental sustainability, which might be caused by market fl uctuation or limited fi nancial or resource capital, but green adoption is positively related to environmental quality since it is benefi cial for ecological sustainability (Adebayo et al, 2022;Jayaraman et al, 2023;Awosusi et al, 2023a;Chen et al, 2023). It means that less access to fi nance adversely aff ects the transition process.…”

Do Renewable Energy and the Real Estate Market Promote Environmental Quality in South Africa: Evidence from the Bootstrap ARDL Approach

“…Isiksal et al [79] in Central Asia and Joof et al [80] in BRICS countries affirmed similar results. Using the PMG on "Mexico, Indonesia, Nigeria, and Turkey (MINT)" countries between 1975 and 2010, Joof and Isiksal [81] explored the link among human capital, export diversification, economic growth, and CO 2 . The analysis suggests that economic growth and the quadratic term of GDP have an inverse effect on emissions in the long term but are not significant in the short run.…”