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Which Factors Determine CO 2 Emissions in China? Trade Openness, Financial Development, Coal Consumption, Economic Growth or Urbanization: Quantile Granger Causality Test

Author

Listed:
  • Zhenkai Yang

    (Department of Finance, School of Economics and Management, Wuhan University, No. 299 Bayi Road, Wuchang District, Wuhan 430072, China)

  • Mei-Chih Wang

    (Department of Insurance and Finance, National Taichung University of Science and Technology, 129 Sec. 3, Sanmin Rd., Taichung 404336, Taiwan)

  • Tsangyao Chang

    (Department of Finance, College of Finance, Feng Chia University, No. 100 Wenhwa Rd., Xitun District, Taichung 40724, Taiwan)

  • Wing-Keung Wong

    (Department of Finance, Fintech & Blockchain Research Center, and Big Data Research Center, Asia University, 500 Lioufeng Rd., Wufeng, Taichung 41354, Taiwan
    Department of Medical Research, China Medical University Hospital, Taichung 40447, Taiwan
    Department of Economics and Finance, Hang Seng University of Hong Kong, Hong Kong 999077, China)

  • Fangjhy Li

    (Department of Finance, School of Finance, Hubei University of Economics, No. 8 Yangqiaohu Road, Jiangxia District, Wuhan 430205, China)

Abstract

The current study employs a Granger causality test within a Quantile approach investigating CO 2 emission determinants in China. Results show urbanization, financial development and openness to trade are leading determinants of CO 2 emissions in China. These results highlight climate change issues while taking advantage of a new methodology to fill a gap in the current literature. Our findings show key implications for PRC government policy related to pollutant reduction policy.

Suggested Citation

  • Zhenkai Yang & Mei-Chih Wang & Tsangyao Chang & Wing-Keung Wong & Fangjhy Li, 2022. "Which Factors Determine CO 2 Emissions in China? Trade Openness, Financial Development, Coal Consumption, Economic Growth or Urbanization: Quantile Granger Causality Test," Energies, MDPI, vol. 15(7), pages 1-18, March.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:7:p:2450-:d:780488
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