Mitigating Carbon Emissions in China: The Role of Clean Energy, Technological Innovation, and Political-Institutional Quality

Abstract

The global warming phenomena arise from the subject of climate change, which draws intellectuals’ attention toward replacing polluting energy sources with clean energy sources by continued deployment of innovations. Also, global warming problems put large pressure on governments, individuals, and policymakers. Therefore, for reliable energy supply and economic development, the target of achieving a low-carbon and sustainable environment is needed. In this light, we explore the role of clean energy and technological innovation in carbon emission reduction in China from 1995 to 2018. The key outcomes from the fully modified least-squares and robust least-squares indicate an elasticity of −0.065 and −0.075, respectively, for the nexus of renewable energy and CO2 emissions. Similarly, nuclear energy, technology innovation, and political-institutional quality have a negative influence on CO2 emissions. Furthermore, the granger causality demonstrates feedback between renewable energy and CO2 emissions, as well as between technological innovation and CO2 emissions. To achieve a cleaner environment, the implementation of the existing policy pathways is potentially geared toward applying technological innovations to produce renewable energy at lower costs.