Evaluating the U-shaped environmental kuznets curve in China: The impact of high technology exports and renewable energy consumption on carbon emissions

Abstract

China's efforts to reduce carbon emissions have stagnated, raising doubts about its commitment to addressing climate change. This study examines the relationship between China's renewable energy, high-tech exports, coal combustion, inbound foreign investment, economic growth, and carbon emissions from 1995 to 2020. The findings reveal a U-shaped relationship between renewable fuel consumption and carbon emissions over the long term, while short-term results show a consistent decrease in emissions. High-tech exports have contributed to reducing carbon emissions, but foreign investment has led to increased emissions, supporting the pollution halo concept. Economic growth is linked to higher carbon emissions in the long run. The study emphasizes the need for China to upgrade its renewable energy initiatives and promote high-tech exports while being cautious about foreign investment. Effective coordination among sectors and stakeholders is essential for reducing carbon emissions in China's renewable energy industry.