IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v34y2023i6p1805-1825.html

Analysis of the impact of natural resource rent, transportation infrastructure, innovation and financial development on China's carbon emission

Author

Listed:
  • Jiemin Huang
  • Liying Guo

Abstract

Using panel data from 30 provinces in China from 1995 to 2017, this study explores the impact of natural resource rent, transportation infrastructure, innovation, financial development, green investment and energy investment on carbon emission and its role in achieving the sustainable development goals. In order to obtain long-term and short-term estimates, the auto-regression distribution lag model (ARDL) is used in this study. The results confirm that natural resource rent, transportation infrastructure, innovation, energy investment and carbon emission are significantly positively correlated in long-term and short-term. Financial development and carbon emission are not significant in short term, but in the long term, financial development will contribute to the rise of carbon emissions. Green investment will increase short-run carbon emissions, whereas it really can control carbon emissions, which is different from other studies. This research proposes to improve the level of innovation and reduce carbon emission in other fields through technological innovation, increase green investment and renewable energy investment and combine with financial development to invest more funds in low carbon environmental production industries and to build an environment friendly system.

Suggested Citation

  • Jiemin Huang & Liying Guo, 2023. "Analysis of the impact of natural resource rent, transportation infrastructure, innovation and financial development on China's carbon emission," Energy & Environment, , vol. 34(6), pages 1805-1825, September.
    • Handle: RePEc:sae:engenv:v:34:y:2023:i:6:p:1805-1825
    DOI: 10.1177/0958305X221100526
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X221100526
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X221100526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ma, Qiang & Murshed, Muntasir & Khan, Zeeshan, 2021. "The nexuses between energy investments, technological innovations, emission taxes, and carbon emissions in China," Energy Policy, Elsevier, vol. 155(C).
    2. Joakim Westerlund & David L. Edgerton, 2008. "A Simple Test for Cointegration in Dependent Panels with Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(5), pages 665-704, October.
    3. Wang, Wei-Zheng & Liu, Lan-Cui & Liao, Hua & Wei, Yi-Ming, 2021. "Impacts of urbanization on carbon emissions: An empirical analysis from OECD countries," Energy Policy, Elsevier, vol. 151(C).
    4. Paramati, Sudharshan Reddy & Mo, Di & Huang, Ruixian, 2021. "The role of financial deepening and green technology on carbon emissions: Evidence from major OECD economies," Finance Research Letters, Elsevier, vol. 41(C).
    5. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    6. Mohmand, Yasir Tariq & Mehmood, Fahad & Mughal, Khurrum Shahzad & Aslam, Faheem, 2021. "Investigating the causal relationship between transport infrastructure, economic growth and transport emissions in Pakistan," Research in Transportation Economics, Elsevier, vol. 88(C).
    7. Joakim Westerlund, 2005. "New Simple Tests for Panel Cointegration," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 297-316.
    8. Du, Limin & Wei, Chu & Cai, Shenghua, 2012. "Economic development and carbon dioxide emissions in China: Provincial panel data analysis," China Economic Review, Elsevier, vol. 23(2), pages 371-384.
    9. Y.T. Mohmand & Fahad Mehmood & K.S. Mughal & F. Aslam, 2021. "Investigating the Causal Relationship between Transport Infrastructure, Economic Growth and Transport Emissions in Pakistan," Post-Print hal-04317820, HAL.
    10. Xu, Le & Fan, Meiting & Yang, Lili & Shao, Shuai, 2021. "Heterogeneous green innovations and carbon emission performance: Evidence at China's city level," Energy Economics, Elsevier, vol. 99(C).
    11. Ulucak, Recep & Danish, & Ozcan, Burcu, 2020. "Relationship between energy consumption and environmental sustainability in OECD countries: The role of natural resources rents," Resources Policy, Elsevier, vol. 69(C).
    12. Balsalobre, Daniel & Sinha, Avik & Driha, Oana M. & Shujaat Mubarik, Muhammad, 2021. "Assessing the Impacts of Ageing and Natural Resource Extraction on Carbon Emissions: A proposed Policy Framework for European Economies," MPRA Paper 108159, University Library of Munich, Germany, revised 2021.
    13. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    14. Udemba, Edmund Ntom & Yalçıntaş, Selin, 2021. "Interacting force of foreign direct invest (FDI), natural resource and economic growth in determining environmental performance: A nonlinear autoregressive distributed lag (NARDL) approach," Resources Policy, Elsevier, vol. 73(C).
    15. Tamazian, Artur & Chousa, Juan Piñeiro & Vadlamannati, Krishna Chaitanya, 2009. "Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries," Energy Policy, Elsevier, vol. 37(1), pages 246-253, January.
    16. Banacloche, Santacruz & Cadarso, Maria Angeles & Monsalve, Fabio & Lechon, Yolanda, 2020. "Assessment of the sustainability of Mexico green investments in the road to Paris," Energy Policy, Elsevier, vol. 141(C).
    17. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    18. Gao, Cuixia & Tao, Simin & He, Yuyang & Su, Bin & Sun, Mei & Mensah, Isaac Adjei, 2021. "Effect of population migration on spatial carbon emission transfers in China," Energy Policy, Elsevier, vol. 156(C).
    19. Xie, Rui & Fang, Jiayu & Liu, Cenjie, 2017. "The effects of transportation infrastructure on urban carbon emissions," Applied Energy, Elsevier, vol. 196(C), pages 199-207.
    20. Chien, Fengsheng & Ajaz, Tahseen & Andlib, Zubaria & Chau, Ka Yin & Ahmad, Paiman & Sharif, Arshian, 2021. "The role of technology innovation, renewable energy and globalization in reducing environmental degradation in Pakistan: A step towards sustainable environment," Renewable Energy, Elsevier, vol. 177(C), pages 308-317.
    21. Shahbaz, Muhammad & Raghutla, Chandrashekar & Song, Malin & Zameer, Hashim & Jiao, Zhilun, 2020. "Public-private partnerships investment in energy as new determinant of CO2 emissions: The role of technological innovations in China," Energy Economics, Elsevier, vol. 86(C).
    22. Li, Guangchen & Wei, Weixian, 2021. "Financial development, openness, innovation, carbon emissions, and economic growth in China," Energy Economics, Elsevier, vol. 97(C).
    23. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    24. Zhang, Yue-Jun, 2011. "The impact of financial development on carbon emissions: An empirical analysis in China," Energy Policy, Elsevier, vol. 39(4), pages 2197-2203, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dangli Zhang & Fuming Zhao & Leow Hon‐Wei & Nhat Tan Nguyen & Ahmad A. Al‐Naimi, 2025. "Nexus between mineral rents and environmental sustainability: The role of economic policy uncertainty," Natural Resources Forum, Blackwell Publishing, vol. 49(4), pages 3728-3742, November.
    2. Muhammad Asif & Jian-Qiao Li & Muhammad Azam Zia & Muhammad Hashim & Uzair Aslam Bhatti & Mughair Aslam Bhatti & Ahmad Hasnain, 2024. "Environmental Sustainability in BRICS Economies: The Nexus of Technology Innovation, Economic Growth, Financial Development, and Renewable Energy Consumption," Sustainability, MDPI, vol. 16(16), pages 1-29, August.
    3. Alao, Rasheed O. & Olanipekun, Ifedolapo O. & Sharimakin, Akinwumi & Olanipekun, Temitope P., 2025. "Breaking down the barriers to a green Africa: Detangling the overlapping issues of fossil fuel energy consumption, resource richness, and economic growth," Resources Policy, Elsevier, vol. 109(C).
    4. Anass Hamadelneel Adow, 2024. "Stock Market Development and Environmental Sustainability in Saudi Arabia: Asymmetry Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 410-417, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Lu & Zhao, Huawei, 2024. "Sustainable development mechanism: The role of natural resources, remittance and policy uncertainty," Resources Policy, Elsevier, vol. 90(C).
    2. Aytun, Cengiz & Erdogan, Sinan & Pata, Ugur Korkut & Cengiz, Orhan, 2024. "Associating environmental quality, human capital, financial development and technological innovation in 19 middle-income countries: A disaggregated ecological footprint approach," Technology in Society, Elsevier, vol. 76(C).
    3. Ahmad, Munir & Wu, Yiyun, 2022. "Natural resources, technological progress, and ecological efficiency: Does financial deepening matter for G-20 economies?," Resources Policy, Elsevier, vol. 77(C).
    4. Fakhri J. Hasanov & Zeeshan Khan & Muzzammil Hussain & Muhammad Tufail, 2021. "Theoretical Framework for the Carbon Emissions Effects of Technological Progress and Renewable Energy Consumption," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 810-822, September.
    5. Maxwell Chukwudi Udeagha & Edwin Muchapondwa, 2023. "Achieving green environment in Brazil, Russia, India, China, and South Africa economies: Do composite risk index, green innovation, and environmental policy stringency matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(5), pages 3468-3489, October.
    6. Li, Qingtao & Sharif, Arshian & Razzaq, Asif & Yu, Yangyu, 2022. "Do climate technology, financialization, and sustainable finance impede environmental challenges? Evidence from G10 economies," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    7. Kai Dong & Shaonan Wang & Hengqiang Hu & Ningning Guan & Xiaolei Shi & Ye Song, 2024. "Financial development, carbon dioxide emissions, and sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 348-366, February.
    8. Xu, Deyi & Sheraz, Muhammad & Hassan, Arshad & Sinha, Avik & Ullah, Saif, 2022. "Financial development, renewable energy and CO2 emission in G7 countries: New evidence from non-linear and asymmetric analysis," Energy Economics, Elsevier, vol. 109(C).
    9. Guan, Lu & Zhao, Chang, 2024. "Exploring the dual role of financial inclusion and mineral resources in elevating sustainable development," Resources Policy, Elsevier, vol. 90(C).
    10. Appiah, Michael & Li, Mingxing & Sehrish, Saba & Abaji, Emad Eddin, 2023. "Investigating the connections between innovation, natural resource extraction, and environmental pollution in OECD nations; examining the role of capital formation," Resources Policy, Elsevier, vol. 81(C).
    11. Wei Wu & John Adam, 2026. "Is Innovation the Silver Bullet for Sustainability? Only Under Strong Governance: Evidence From the G20," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(2), pages 2409-2426, April.
    12. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    13. Han, Guixin & Cai, Xuesen, 2024. "The linkages among natural resources, sustainable energy technologies and human capital: An evidence from N-11 countries," Resources Policy, Elsevier, vol. 90(C).
    14. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    15. Hatem Hatef Abdulkadhim Altaee & Saya Jamal Azeez, 2023. "Impacts of Environment-Related Technology, Structural Change, and Globalization on Greenhouse Gas Emissions: Evidence from Top Twenty Emitter Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 690-697, November.
    16. Jialin Li, 2026. "How natural resource consumption, trade, energy transition, and geopolitical risk drive sustainable development in G20 nations?," Natural Resources Forum, Blackwell Publishing, vol. 50(1), pages 659-684, February.
    17. Mohammed Musah, 2023. "Stock market development and environmental quality in EU member countries: a dynamic heterogeneous approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11153-11187, October.
    18. Soto, Gonzalo Hernández, 2024. "The effects of foreign direct investment on environmentally related technologies in Latin America," Resources Policy, Elsevier, vol. 90(C).
    19. Deng, Qiu Shi & Alvarado, Rafael & Cuesta, Lizeth & Tillaguango, Brayan & Murshed, Muntasir & Rehman, Abdul & Işık, Cem & López-Sánchez, Michelle, 2022. "Asymmetric impacts of foreign direct investment inflows, financial development, and social globalization on environmental pollution," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 236-251.
    20. Iqra Mehroush & Wasim Abbas Shaheen & Mohsin Shabir & Muhammad Talha, 2025. "Pathways to ecological resilience: exploring green energy and finance for sustainable development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(8), pages 17861-17885, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:engenv:v:34:y:2023:i:6:p:1805-1825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.