Sustainable environment, energy and finance in China: evidence from dynamic modelling using carbon emissions and ecological footprints

Abstract

This study investigates sustainable finance along with sustainable economic factors on both carbon emissions and ecological footprints in China. A novel Dynamic Autoregressive Distributed Lag technique is applied, results revealed sustainable finance exerts positive/negative influence on carbon emissions in the long-and short-run, respectively. Results are robust with ecological footprints that sustainable finance placed a lucrative cause to preserve the environment.Sustainable economic factors show a positive impact on carbon emissions in the long run, while economic growth, energy consumption, and exports improve environmental quality. Conversely, in the short run, urbanization supports the environment while economic development, energy use, and exports exert a positive impact. In addition, this study suggests useful policy implications for the stakeholders.

Towards a sustainable future: The role of energy efficiency, renewable energy, and urbanization in limiting CO2 emissions in Sweden

“…Urbanization is often associated with increased energy consumption and greenhouse gas emissions, but it can also contribute to reducing CO 2 emissions in several ways. Agreeing withAli et al (2022), we argue that urbanization can lead to more compact and connected cities, which reduces the need for travel through vehicles, encourage the use of public transport, walking, and cycling, result in a substantial decrease in CO 2 from the transportation sector, one of the major sector contributing to emissions in many countries. Second, urbanization can provide opportunities for the placement of low-carbon technologies such as renewable energy, district heating, and energy-efficient buildings, as stated byZang et al (2023).…”

“…Likewise, the study of Lee et al (2022) on the role of the urban population on CO 2 emissions in BRI economies documented emissions increasing role of urbanization. With the aim of drafting sustainable urbanization, Ali et al (2022) explore the urban population and emissions nexus in China, utilizing data from 1990 to 2019. The study results uncovered emissions decreasing role of the urban population, which implies sustainable urbanization.…”

“…The promotion of sustainable urban transportation systems, building designs, and green spaces can further enhance urban livability while mitigating the effects of climate change (Lee et al, 2022). In the same context, Ali et al (2022) stated that dense urban areas often have better public transit systems, pedestrian infrastructure, and bike lanes, which can encourage more people to use these modes of transportation instead of vehicles. This not only reduces emissions from transportation but can also improve air quality, reduce traffic congestion, and promote healthier lifestyles (Ahmad et al, 2021; Akram et al, 2020).…”

Coupling Evaluation and Spatial–Temporal Evolution of Land Ecosystem Services and Economic–Social Development in a City Group: The Case Study of the Chengdu–Chongqing City Group

“…The excessive claim and use of ecological resources by urban construction not only cannot maintain their livelihood levels, but also exacerbates the deterioration of the land ecosystem and causes damage to the ecological environment that is difficult to recover [ 5 ]. Only by finding the “balance point” between urban economic–social development and land ecosystem can we implement the concept of regional ecological and economic development, promote the healthy development of urban economy, and truly achieve the region’s sustainable development [ 6 , 7 ]. Therefore, how to reconcile the contradiction between land ecosystem and economic–social development is the key to the current land use.…”

Can green finance improve carbon emission efficiency? Evidence from China

“…Furthermore, according to China's Green Finance Development Report 2021, China needs to invest about 150-500 trillion yuan to realize the "carbon peaking and carbon neutrality" strategy, which cannot effectively meet such a huge capital demand only by fiscal strength. Therefore, financial support is an important part of improving carbon emission efficiency (Ali et al, 2022;Fareed et al, 2022;Rehman et al, 2022), and it is also an indispensable force for marketization to promote the realization of the "carbon peaking and carbon neutrality" goal (Zhang, 2011). In order to identify the flow of financial resources and ensure the accurate flow of supporting tools to the green development field, China actively explores green financial products and services and continuously improves the long-term development mechanism of green finance.…”