The impacts of GDP, trade structure, exchange rate and FDI inflows on China's carbon emissions
By Yu Zhang, Sufang Zhang. Energy Policy, 2018
312 citations recorded by the source corpus.
This paper examines the impacts of GDP, trade structure, exchange rate and FDI (foreign direct investment) inflows on China's carbon emissions from 1982 to 2016 and verifies the validity of EKC (Environmental Kuznets Curve) hypothesis for China. Differentiated from the existing literature which rarely considers services trade and exchange rate, this paper uses the proportion of services trade to measure trade structure, and exchange rate as one of the independent variables. Firstly, the stability of each variable is tested by ADF (Augmented Dickey-Fuller) and NP (Ng-Perron) test. Then, ARDL bound test is used to test the cointegration of the variables as it has better properties than traditional cointegration methods and is more suitable for the model in this paper. Thirdly, Error Correction Model is used to analyze the long-term and short-term dynamic relationship between the variables. Fourthly, the Granger causality test based on the VAR is performed. It is found that during the study period EKC hypothesis was valid for China, and that whilst the impacts of both services trade and exchange rate on China's carbon emissions were negative, the impacts of FDI inflows were positive. Conclusions and policy implications are provided at the end of the paper.
Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/903a2e402011dc449ddfc509fe868a9227f8cb28
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Citations in the corpus
- Financial development and ecological footprint: A global panel data analysis (2019, background): “The literature has highlighted the influential impact of financial development (FD) on environmental degradation (Zhang, 2011; Katircioglu & Taşpinar 2017; Zhang and Zhang 2018; Danish et al., 2018; Destek & Sarkodie 2019; Sarkodie and Strezov, 2019).”
- The repercussions of foreign direct investment, renewable energy and health expenditure on environmental decay? An econometric analysis of B&RI countries (2020, background): “…Arabia, Serbia, Slovenia, Thailand, Timor-Leste, United Arab Emirates, Vietnam and Yemen have validated the significant positive link between FDI and environmental pollution by verifying the pollution haven hypothesis (Yildirim 2014; Hakimi and Hamdi 2016; Naz et al. 2019; Zhang and Zhang 2018).”
- Predictive Maintenance and Intelligent Sensors in Smart Factory: Review (2021, background): “Simultaneously, the share of products and semifinished products in international trade is continuously growing, despite the declining share of national Gross Domestic Product (GDP) in developed countries [3].”