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Sustainable environment, energy and finance in China: Evidence from dynamic modelling using carbon emissions and ecological footprints

Sustainable environment, energy and finance in China: Evidence from dynamic modelling using carbon emissions and ecological footprints
Sustainable environment, energy and finance in China: Evidence from dynamic modelling using carbon emissions and ecological footprints
The excess utilization of conventional energy sources and their impact on environmental degradation have compelled emerging economies to explore alternative sustainable energy sources in order to protect the environment. This study investigates the impact of sustainable finance (market capitalization) and other sustainable economic factors (exports, energy consumption, economic growth, and urbanization) on both carbon emissions/greenhouse gases emissions) and ecological footprints in China from 1970 to 2017. Considering the Environmental Kuznets Curve perspective, a novel Dynamic Autoregressive Distributed Lag technique is applied. This model is efficient enough to draw actual positive and negative simulations, while showing the change of independent variables and their impact on the dependent variable. The empirical results of this study indicate that sustainable finance exerts a positive and negative influence on carbon emissions in the long- and short-run, respectively. Likewise, the results are robust with ecological footprints through which it is evident that sustainable finance placed a lucrative cause to preserve the environment. Outcomes of additional predictors state that in the long-run, sustainable economic factors (urbanization) capture a positive impact on carbon emissions, while others, such as economic growth, energy consumption, and exports improve environmental quality. Conversely, short-run results state that urbanization supports the environment. Still, economic development, energy use, and exports tend to damage the environment, exerting a positive impact on CO2 emissions in China. The policy implications from this study can be very useful in accomplishing the widely stated global sustainable development and environment goals.

Keywords: Sustainable environment, energy and finance, market capitalization, Carbon/CO2 emissions, ecological footprints, DARDL, China.
Carbon/CO2 emissions, China, DARDL, Sustainable environment, ecological footprints, energy and finance, market capitalization
0944-1344
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Mubeen
e195eaad-357e-49a8-ba9f-9f6de234717b
Rehman, Ramiz ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Mubeen
e195eaad-357e-49a8-ba9f-9f6de234717b
Rehman, Ramiz ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b

Ali, Rizwan, Rehman, Mubeen, Rehman, Ramiz ur and Ntim, Collins (2022) Sustainable environment, energy and finance in China: Evidence from dynamic modelling using carbon emissions and ecological footprints. Environmental Science and Pollution Research. (doi:10.1007/s11356-022-21337-0).

Record type: Article

Abstract

The excess utilization of conventional energy sources and their impact on environmental degradation have compelled emerging economies to explore alternative sustainable energy sources in order to protect the environment. This study investigates the impact of sustainable finance (market capitalization) and other sustainable economic factors (exports, energy consumption, economic growth, and urbanization) on both carbon emissions/greenhouse gases emissions) and ecological footprints in China from 1970 to 2017. Considering the Environmental Kuznets Curve perspective, a novel Dynamic Autoregressive Distributed Lag technique is applied. This model is efficient enough to draw actual positive and negative simulations, while showing the change of independent variables and their impact on the dependent variable. The empirical results of this study indicate that sustainable finance exerts a positive and negative influence on carbon emissions in the long- and short-run, respectively. Likewise, the results are robust with ecological footprints through which it is evident that sustainable finance placed a lucrative cause to preserve the environment. Outcomes of additional predictors state that in the long-run, sustainable economic factors (urbanization) capture a positive impact on carbon emissions, while others, such as economic growth, energy consumption, and exports improve environmental quality. Conversely, short-run results state that urbanization supports the environment. Still, economic development, energy use, and exports tend to damage the environment, exerting a positive impact on CO2 emissions in China. The policy implications from this study can be very useful in accomplishing the widely stated global sustainable development and environment goals.

Keywords: Sustainable environment, energy and finance, market capitalization, Carbon/CO2 emissions, ecological footprints, DARDL, China.

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More information

Accepted/In Press date: 3 June 2022
e-pub ahead of print date: 15 June 2022
Keywords: Carbon/CO2 emissions, China, DARDL, Sustainable environment, ecological footprints, energy and finance, market capitalization

Identifiers

Local EPrints ID: 458089
URI: http://eprints.soton.ac.uk/id/eprint/458089
ISSN: 0944-1344
PURE UUID: ed9c13d0-a403-48a6-b12e-54a2aedab0d0
ORCID for Collins Ntim: ORCID iD orcid.org/0000-0002-1042-4056

Catalogue record

Date deposited: 28 Jun 2022 16:53
Last modified: 23 Jul 2022 01:27

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Contributors

Author: Rizwan Ali
Author: Mubeen Rehman
Author: Ramiz ur Rehman
Author: Collins Ntim ORCID iD

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