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Mitigating carbon emissions by accelerating green growth in China

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  • Dong, Kangyin
  • Wang, Bo
  • Zhao, Jun
  • Taghizadeh-Hesary, Farhad

Abstract

This study empirically examines the carbon emissions effect of green development. The study first constructs a green development index and then examines the green development effect on carbon dioxide (CO2) emissions. In addition, it explores the asymmetric effect and transmission mechanism in the green development–CO2 nexus. The study mainly finds that (1) green development has achieved its preliminary objectives in China during the sample period; (2) green development has a negative correlation with CO2 emissions in China, implying that by accelerating the green transition, the economy can help mitigate the greenhouse effect; (3) CO2 emissions and their determinants have significant asymmetric effects; and (4) green development affects CO2 emissions by accelerating the economic development, improving energy efficiency, and facilitating the industrial transition. Finally, the study proposes a series of policy implications such as stronger energy technical innovation and faster industrial transition for better carbon emission reduction and green development.

Suggested Citation

  • Dong, Kangyin & Wang, Bo & Zhao, Jun & Taghizadeh-Hesary, Farhad, 2022. "Mitigating carbon emissions by accelerating green growth in China," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 226-243.
    • Handle: RePEc:eee:ecanpo:v:75:y:2022:i:c:p:226-243
    DOI: 10.1016/j.eap.2022.05.011
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    3. Sainan Cheng & Guohua Qu, 2023. "Research on the Effect of Digital Economy on Carbon Emissions under the Background of “Double Carbon”," IJERPH, MDPI, vol. 20(6), pages 1-27, March.
    4. Shang, Yuping & Xu, Jilan & Zhao, Xin, 2022. "Urban intensive land use and enterprise emission reduction: New micro-evidence from China towards COP26 targets," Resources Policy, Elsevier, vol. 79(C).
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    More about this item

    Keywords

    Green development; CO2 emissions; Instrumental variable (IV); Mediation effect; China;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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