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Linking Innovative Human Capital, Economic Growth, and CO 2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data

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  • Xi Lin

    (Business School, Hohai University, Nanjing 211100, China
    Business School, Guilin University of Technology, Guilin 541004, China)

  • Yongle Zhao

    (Business School, Hohai University, Nanjing 211100, China)

  • Mahmood Ahmad

    (Business School, Shandong University of Technology, Zibo 255000, China)

  • Zahoor Ahmed

    (Department of Economics, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, Haspolat 99040, Turkey)

  • Husam Rjoub

    (Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, Haspolat 99040, Turkey)

  • Tomiwa Sunday Adebayo

    (Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, Nicosia, Northern Cyprus, Mersin TR-10, Turkey)

Abstract

To study the economic and environmental effects of human capital, previous studies measure human capital based on education; however, this approach has many shortcomings because not all educated people are innovative human capital. Hence, this study introduces the concept of innovative human capital by developing a new index that measures human capital based on the number of patents every one million R&D staff full-time equivalent. After this, this paper studies the impact of innovative human capital on CO 2 emissions in China. The provincial panel data of 30 Chinese provinces from 2003 to 2017 is analyzed using the fixed effect, ordinary least squares, and the system generalized method of moments (SYS-GMM). The analysis revealed that innovative human capital alleviates environmental deterioration in China. The findings unfold the existence of the environmental Kuznets curve (EKC) considering innovative human capital in the model. It implies that Chinese economic development will eventually support environmental sustainability if China continues to develop its innovative human capital. Among the control variables, economic structure, population density, and energy intensity stimulate environmental degradation by increasing CO 2 emissions. However, FDI has a negative relationship with CO 2 emissions. Lastly, the study proposes comprehensive policies to increase innovative human capital for environmental sustainability.

Suggested Citation

  • Xi Lin & Yongle Zhao & Mahmood Ahmad & Zahoor Ahmed & Husam Rjoub & Tomiwa Sunday Adebayo, 2021. "Linking Innovative Human Capital, Economic Growth, and CO 2 Emissions: An Empirical Study Based on Chinese Provincial Panel Data," IJERPH, MDPI, vol. 18(16), pages 1-18, August.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:16:p:8503-:d:612744
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