The Dynamic Impact of Renewable Energy and Economic Growth on CO2 Emissions in China: Do Remittances and Technological Innovations Matter?

Abstract

Several investigations show that remittances, renewable energy, and innovation promote the socioeconomic advancement of a nation. Nevertheless, the impacts of remittances and renewable energy on ecological quality are yet to be evaluated thoroughly. Therefore, the current investigation assesses the effects of remittances and renewable energy on CO2 emissions while taking into account the roles of technological innovation, globalization, and economic growth. Toward this end, this paper depends on yearly data between 1990 and 2019. The study employed bounds testing and its results disclosed long-term connections between CO2 and the regressors. Moreover, unlike prior studies that employ time-domain causality, we employed frequency domain causality, which considers causality at different frequencies. Furthermore, the ARDL long- and short-run results showed that economic growth amplified CO2 emissions, while green energy, remittances, and globalization lessened CO2 emissions. Lastly, the frequency domain causality approach revealed that globalization, renewable energy, economic growth, technological innovation, and remittances could predict CO2 emissions in the long-term. These findings’ sturdiness was established utilizing DOLS and FMOLS regression. Several policy recommendations are suggested in light of these ground-breaking discoveries.