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.
SongWMaoHHanX. The two-sided effects of foreign direct investment on carbon emissions performance in China. Sci Total Environ2021; 791: 148331.
2.
ErdoganS. Dynamic nexus between technological innovation and building sector carbon emissions in the BRICS countries. J Environ Manag2021; 293: 112780.
3.
XuLFanMYangL, et al.Heterogeneous green innovations and carbon emission performance: evidence at China’s city level. Energy Econ2021; 99: 105269.
4.
ZhangMYangZLiuL, et al.Impact of renewable energy investment on carbon emissions in China-an empirical study using a nonparametric additive regression model. Sci Total Environ2021; 785: 147109.
5.
GaoCTaoSHeY, et al.Effect of population migration on spatial carbon emission transfers in China. Energy Policy2021; 156: 112450.
6.
WangW-ZLiuL-CLiaoH, et al.Impacts of urbanization on carbon emissions: an empirical analysis from OECD countries. Energy Policy2021; 151: 112171.
7.
Balsalobre-LorenteDSinhaADrihaOM, et al.Assessing the impacts of ageing and natural resource extraction on carbon emissions: a proposed policy framework for European economies. J Cleaner Prod2021; 296: 126470.
8.
LiLMcMurrayALiX, et al.The diminishing marginal effect of R&D input and carbon emission mitigation. J Cleaner Prod2021; 282: 124423.
9.
LiuJBaiJDengY, et al.Impact of energy structure on carbon emission and economy of China in the scenario of carbon taxation. Sci Total Environ2021; 762: 143093.
10.
LiZ-ZLiRYMMalikMY, et al.Determinants of carbon emission in China: how good is green investment?Sustainable Prod Consumption2021; 27: 392–401.
11.
ShenYSuZ-WMalikMY, et al.Does green investment, financial development and natural resources rent limit carbon emissions? A provincial panel analysis of China. Sci Total Environ2021; 755: 142538.
12.
GrossmanGMKruegerAB. Economic growth and the environment. Q J Econ1995; 110: 353–377.
13.
MaQMurshedMKhanZ. The nexuses between energy investments, technological innovations, emission taxes, and carbon emissions in China. Energy Policy2021; 155: 112345.
14.
UmarMJiXKirikkaleliD, et al.COP21 Roadmap: do innovation, financial development, and transportation infrastructure matter for environmental sustainability in China?J Environ Manag2020; 271: 111026.
15.
WangLVoXVShahbazM, et al.Globalization and carbon emissions: is there any role of agriculture value-added, financial development, and natural resource rent in the aftermath of COP21?J Environ Manag2020; 268: 110712.
16.
UdembaENYalçıntaşS. Interacting force of foreign direct invest (FDI), natural resource and economic growth in determining environmental performance: a nonlinear autoregressive distributed lag (NARDL) approach. Resources Policy2021; 73: 102168.
17.
ZhangLGodilDIBibiM, et al.Caring for the environment: how human capital, natural resources, and economic growth interact with environmental degradation in Pakistan? A dynamic ARDL approach. Sci Total Environ2021; 774: 145553.
18.
UlucakROzcanB. Relationship between energy consumption and environmental sustainability in OECD countries: the role of natural resources rents. Resour Policy2020; 69: 101803.
19.
ChurchillSAInekweJIvanovskiK, et al.Transport infrastructure and CO2 emissions in the OECD over the long run. Transp Res D, Transp Environ2021; 95: 102857.
20.
MohmandYTMehmoodFMughalKS, et al.Investigating the causal relationship between transport infrastructure, economic growth and transport emissions in Pakistan. Res Transp Econ2021; 88: 100972.
21.
TiwariAKKhalfaouiRSaidiS, et al.Transportation and environmental degradation interplays in US: new insights based on wavelet analysis. Environ Sustainability Indic2020; 7: 100051.
22.
AbidAMehmoodUTariqS, et al.The effect of technological innovation, FDI, and financial development on CO2 emission: evidence from the G8 countries. Environ Sci Pollut Res2022; 29: 11654–11662.
23.
RafiqueMZLiYLarikAR, et al.The effects of FDI, technological innovation, and financial development on CO2 emissions: evidence from the BRICS countries. Environ Sci Pollut Res2020; 27: 23899–23913.
24.
WangRMirzaNVasbievaDG, et al.The nexus of carbon emissions, financial development, renewable energy consumption, and technological innovation: what should be the priorities in light of COP 21 agreements?J Environ Manag2020; 271: 111027.
25.
UlucakR. Renewable energy, technological innovation and the environment: a novel dynamic auto-regressive distributive lag simulation. Renewable Sustainable Energy Rev2021; 150: 111433.
26.
ShahbazMRaghutlaCSongM, et al.Public-private partnerships investment in energy as new determinant of CO2 emissions: the role of technological innovations in China. Energy Econ2020; 86: 104664.
27.
ShahbazMDestekMADongK, et al.Time-varying impact of financial development on carbon emissions in G-7 countries: evidence from the long history. Technol Forecast Soc Change2021; 171: 120966.
28.
KhanHKhanIBinhTT. The heterogeneity of renewable energy consumption, carbon emission and financial development in the globe: a panel quantile regression approach. Energy Rep2020; 6: 859–867.
29.
BuiDT. Transmission channels between financial development and CO2 emissions: a global perspective. Heliyon2020; 6: e05509.
30.
LiuHSongY. Financial development and carbon emissions in China since the recent world financial crisis: evidence from a spatial-temporal analysis and a spatial Durbin model. Sci Total Environ2020; 715: 136771.
31.
AtsuFAdamsSAdjeiJ. ICT, energy consumption, financial development, and environmental degradation in South Africa. Heliyon2021; 7: e07328.
32.
LiGWeiW. Financial development, openness, innovation, carbon emissions, and economic growth in China. Energy Econ2021; 97: 105194.
33.
GuoJZhouYAliS, et al.Exploring the role of green innovation and investment in energy for environmental quality: an empirical appraisal from provincial data of China. J Environ Manag2021; 292: 112779.
34.
WesterlundJEdgertonDL. A simple test for cointegration in dependent panels with structural breaks. Oxf Bull Econ Stat2008; 70: 665–704.
35.
ParamatiSRMoDHuangR. The role of financial deepening and green technology on carbon emissions: evidence from major OECD economies. Finance Res Lett2021; 41: 101794. doi:10.1016/j.frl.2020.101794
36.
YueX-GLiaoYZhengS, et al.The role of green innovation and tourism towards carbon neutrality in Thailand: evidence from bootstrap ADRL approach. J Environ Manag2021; 292: 112778.
37.
BanaclocheSCadarsoMAMonsalveF, et al.Assessment of the sustainability of Mexico green investments in the road to Paris. Energy Policy2020; 141: 111458.
38.
HaoL-NUmarMKhanZ, et al.Green growth and low carbon emission in G7 countries: how critical the network of environmental taxes, renewable energy and human capital is?Sci Total Environ2021; 752: 141853.
39.
DuLWeiCCaiS. Economic development and carbon dioxide emissions in China: provincial panel data analysis. China Econ Rev2012; 23: 371–384.
40.
ChenW. The effects of income inequality on economic growth: evidence from China. PhD thesis. University of Bath, 2018.
41.
XieRFangJLiuC. The effects of transportation infrastructure on urban carbon emissions. Appl Energy2017; 196: 199–207.
42.
YuYLiSSunH, et al.Energy carbon emission reduction of China’s transportation sector: an input–output approach. Econ Anal Policy2021; 69: 378–393.
43.
ErdoğanSYıldırımSYıldırımDÇ, et al.The effects of innovation on sectoral carbon emissions: evidence from G20 countries. J Environ Manag2020; 267: 110637.
44.
ZhangY-J. The impact of financial development on carbon emissions: an empirical analysis in China. Energy Policy2011; 39: 2197–2203.
45.
TamazianAChousaJPVadlamannatiKC. Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries. Energy Policy2009; 37: 246–253.
46.
PesaranMH. Testing weak cross-sectional dependence in large panels. Econom Rev2015; 34: 1089–1117.
47.
PesaranMHYamagataT. Testing slope homogeneity in large panels. J Econom2008; 142: 50–93.
48.
PesaranMH. A simple panel unit root test in the presence of cross-section dependence. J Appl Econom2007; 22: 265–312.
49.
WesterlundJ. New simple tests for panel cointegration. Econom Rev2005; 24: 297–316.
50.
YangXYangZJiaZ. Effects of technology spillover on CO2 emissions in China: a threshold analysis. Energy Rep2021; 7: 2233–2244.
51.
ChengCRenXWangZ. The impact of renewable energy and innovation on carbon emission: an empirical analysis for OECD countries. Energy Procedia2019; 158: 3506–3512.
52.
ChienFAjazTAndlibZ, et al.The role of technology innovation, renewable energy and globalization in reducing environmental degradation in Pakistan: a step towards sustainable environment. Renewable Energy2021; 177: 308–317.
