Role of economy, technology, and renewable energy toward carbon neutrality in China

Abstract

The goal of the research project is to look at the influence of the economy, technology, and renewable energy on China's ecological damage. A number of methods, such as the ARDL bound test for cointegration, DOLS, FMOLS, and CCR, were utilized to look at how the explanatory variables changed and how that affected the dependent variable. The DOLS estimate results show a significant positive extended connection between economic growth and CO2 generations. A 1% increase in economic expansion results in a 0.51% rise in CO2 emissions. The use of renewable energy has a strong destructive association with CO2 emissions. The emissions of carbon dioxide are expected to decline by 0.03% over the long run for every 1% upsurge in green energy use. Moreover, technological innovation has a substantial and adverse long-term effect, with a 1% rise resulting in a 0.08% decrease in CO2 emissions. The reliability of the findings is confirmed using several estimators, such as FMOLS and CCR. The paired Granger causality test was used to determine the causal link among various factors. The study recommends implementing regulatory measures to support a carbon-free economy, boosting the consumption of clean energy, and investing in technological developments to lower emissions and achieve carbon neutrality in China.