Evaluating the impact of stakeholder engagement for renewable energy sources and economic growth for CO2 emission

Financial institutions are enforcing strict environmental rules to curb climate change, spurring the shift to renewable energy (RE) sources due to rising public awareness and engagement with stakeholders. As a result, this research examines the factors that have influenced China's economic development from 1990 to 2019. Using the dynamic autoregressive distributed lag (ARDL) technique, we examine how changes in energy consumption, industrial expansion, urbanization, and carbon emissions affect China's GDP growth. According to these studies, which are inverted U-shaped, there is a high correlation between carbon dioxide emissions and gross domestic product in the long and near term. China's increased usage of fossil fuels has resulted in a rise in carbon dioxide emissions. Carbon dioxide emissions per capita rise by 0.311% for every one percent increase in fossil fuel consumption per capita. Consumption of RE may have a progressive impact on lowering carbon dioxide emissions. In the long term, a 1% rise in REC per capita reduces greenhouse gas emissions by 0.324%. At the same time, our findings show that the continued advancement of the RE industry in China simultaneously raises the emission of GHGs, and a 1% rise in REC increases the release of carbon dioxide gas by 0.245% to 0.252% in the short term. China must keep up the use of renewable energy and make people aware of the carbon emissions from China's rapid growth of renewable energy.