Low-carbon Economic Growth Research Articles

Analysis of China’s carbon financial Development’s impact on reducing emissions using the BCC and Malmquist models

This study evaluates the impact of China’s carbon finance development on carbon emission reduction and its role in promoting low-carbon economic growth. We construct an evaluation index system and employ Systematic Cluster Analysis (SCA) and Data Envelopment Analysis (DEA) methods to analyze the carbon finance markets in five representative Chinese provinces (autonomous regions). Utilizing the DEA-BCC model and DEA-Malmquist index, we conducted an in-depth analysis of the carbon emission reduction effects between 2022 and 2023. Our findings reveal that while China’s carbon finance development significantly contributes to carbon emission reduction, there are considerable regional disparities in effectiveness. Beijing and Guangdong achieved DEA efficiency, whereas Jilin, Ningxia, and Xinjiang experienced efficiency losses, suggesting a need for structural optimization. The study provides insights into challenges and potential improvements in China’s carbon finance sector and offers policy recommendations for enhancing market mechanisms, technological innovation, and social engagement to support China’s carbon peak and neutrality goals.

Accelerating decarbonized economic growth through net-zero entrepreneurship: Low-carbon economic development perspective

Net-zero entrepreneurship is a novel concept introduced in the context of carbon neutrality, and exploring whether it can catalyze decarbonized economic growth is a worthy pursuit. This study constructs a comprehensive, low-carbon endogenous economic growth model to scrutinize the intricate nexus between net-zero entrepreneurship and decarbonized economic growth. Empirical validation employs a series of multiple regression models to rigorously test the hypotheses derived from the theoretical framework using an extensive dataset spanning Chinese provinces. The results reveal a nuanced landscape. (i) Net-zero entrepreneurship plays a remarkable role in promoting decarbonization growth, with considerable regional heterogeneity. (ii) Green technology progress exhibits a notable mediating effect. (iii) Environmental regulation and industrial structure optimization have positive moderating effects. (iv) The results passed alternative dependent variable and one-phase lag regression robustness tests. In a distinct contribution to entrepreneurship literature, this study augments the discourse on strategies to steer low-carbon transitions. The research findings indicate that net-zero entrepreneurship can accelerate the global decarbonization process, and green technology progress is a significant driving mechanism in this process. Additionally, it is essential to strengthen environmental agencies’ regulatory oversight and optimize industrial structures to pave the way for transformative sustainable growth. In the future, more entrepreneurs should be encouraged to engage in green technology and business model innovation to contribute to global decarbonization efforts.

Exploring the impact of sustainable finance on carbon emissions: Policy implications and interactions with low-carbon energy transition from China

With the increasing attention to environmental degradation and sustainable development goals, the low-carbon energy transition has emerged as a focal point in both academic and political realms. This research examines, under the framework of the Environmental Kuznets Curve, the impact of low-carbon energy transition, natural resource rents, and economic growth on environmental performance. Additionally, it delves into the regulatory role of green finance and transition finance in the nexus between low-carbon energy transition and environmental performance. The research findings reveal that the influence of low-carbon energy transition, economic growth, and natural resource rents on environmental performance exhibits distinct regional heterogeneity. The research also verifies the premise that the Environmental Kuznets Curve exists exclusively in the eastern area of China. Further investigation indicates that sustainable finance plays a crucial regulatory role in the relationship between low-carbon energy transition and environmental performance. According to these results, the paper suggests that provinces should establish dual environmental and economic goals and optimize financial policy design. Moreover, governments and enterprises should achieve sustainable development goals through means such as technological innovation, regulatory frameworks, and market mechanisms.

Environmental Regulation, Industrial Structure and Low-Carbon Development

<p>In this paper, the provincial panel data of china from the year 2006 to 2019 are used to analyze the association among environmental regulations, industrial structure od industries and low-carbon development. The results show that regional industrial CO2 emissions in China's east, center, and west were greatly decreased by environmental restrictions. The most significant deterrent to carbon emissions in the central region was, notably, environmental regulatory measures. By encouraging improvements in industrial structure and increasing its efficiency, the study shows that these rules helped to lower industrial carbon emissions. The examination of the sub-sample mechanism reveals significant regional variations: an advanced industrial structure was a major force behind low-carbon development in the western region, whereas high-efficiency industrial structures were critical in the eastern region. Through structural changes in the business, environmental restrictions can effectively promote low-carbon economic growth, as this study highlights. Across a range of control factors, environmental regulation considerably decreased regional industrial carbon emissions by about 0.196 to 0.033. Trade openness, urbanization, and the development of human capital all helped to reduce carbon emissions by roughly 1.057 to 4.104. The efficacy of regulatory tools was verified by endogeneity tests, which yielded coefficients varying between -0.891 and -0.156 for distinct factors. The results offering actual proof of the varying effects of environmental laws in various geographical areas and highlight the necessity of specialized policy strategies to promote sustainable development.</p>

Impact of Information and Communication Technologies and Renewable Energy Consumption on Carbon Emissions in Africa

The pursuit of economic growth has implications for carbon emissions and climate change. Achieving low carbon development is important for attaining the targets of the sustainable development goals. Africa is often described as a largely import-dependent continent. The continent also requires significant investment in information and communication technologies (ICT) and renewable energy to achieve low-carbon economic growth. However, empirical evidence on the joint impacts of imports of goods and services, clean energy use, ICT, and economic growth on carbon emissions in Africa is scanty and mixed. This paper investigated the impacts of information and communication technologies, renewable energy consumption, import and economic growth on carbon emissions by using rich data on total per capita carbon dioxide (CO2) emissions, economic growth, import of goods and services, renewable energy consumption, fixed telephone subscriptions, mobile cellular subscriptions, and individuals using the internet in Africa (2001 ─ 2020) obtained from the World development indicators (WDI) database. Using the Panel autoregressive distributed lag model (PARDL), we found that mobile cellular subscriptions, and level of economic growth significantly increased per capita CO2 emissions in Africa in the long run while renewable energy consumption and technologies and import of goods and services significantly decreased per capita CO2 emissions in the long run. We conclude that information and communication technologies, level of economic growth, import of goods and services, and renewable energy consumption exert impacts on carbon emissions in Africa.

How does technological progress affect low carbon economic growth? Evidence from regional heterogeneity in China.

The rapid economic development leads to excessive consumption of fossil energy, resulting in a large number of carbon emissions, which makes the sustainable development of China's economy and society face great challenges. Under the background of global warming and environmental deterioration, developing low-carbon economy has become an inevitable choice for China to change its development model and improve its international competitiveness. Technological progress is the first driving force to promote economic growth. However, the influence degree and mechanism of technological progress on the development of low-carbon economy are still unclear. Based on this, the paper proposes the concept of low-carbon GDP, which is used to measure the low-carbon economic development of 30 Chinese provinces. Then, the panel fixed effect model is used to study the effect degree and mechanism of technological progress on low-carbon GDP and the moderating effect of other factors on the relationship between them. The results show that, first, economically developed provinces and regions have higher per capita low-carbon GDP and low-carbon GDP index, but the speed and quality of low-carbon economic development are not necessarily higher. Second, technological progress can promote the growth of low-carbon GDP and make greater contributions to resources-poor regions. Third, improving local education can make technological progress more effective in low-carbon economic development. China needs to upgrade technological development by developing new and high-tech technologies, promoting new urbanization and strengthening education in order to promote low-carbon economic development.

Differences in carbon sink potential between urban agglomerations are decreasing: Evidence from China

In the context of global warming, effectively reducing carbon emissions is crucial for the sustainable development of human society. Enhancing carbon sink potential offers an efficient and economical method to reduce carbon emissions. Urban agglomerations, as significant sources and carbon sinks, play a pivotal role in optimizing carbon sink potential. This study examines 19 urban agglomerations in China, employing the improved CRITIC method, Dagum's Gini coefficient, and its decomposition, and the spatial convergence model to assess the carbon sink potential level, identify disparities and their origins, and analyze the convergence mechanism within these urban agglomerations. The findings reveal: (1) Driven by policy support and technological progress, China's urban agglomerations have improved carbon sink potential, with low-level areas diminishing and medium- to high-level areas growing consistently. (2) The variation in carbon sink potential across regions primarily stems from differences among urban agglomerations, suggesting that reducing these disparities could further enhance carbon sink potential. (3) There is a trend of convergence in carbon sink potential among urban agglomerations, indicating that disparities are narrowing over time, moving towards long-term equilibrium. This study extends carbon sink research into urban ecosystems, offering comparative analyses across temporal and spatial dimensions. It enriches the current body of research and provides empirical guidance for China and similar developing countries in pursuing an equilibrium between low-carbon development and economic growth.

How can emerging economies meet development and climate goals in the transport-energy system? Modelling co-developed scenarios in Kenya using a socio-technical approach

Transport-energy transitions pose complex challenges that have been extensively studied in high-income countries in response to national mandates for climate action. Low- and middle-income countries, however, have low but rapidly growing motorisation rates and face very different challenges in adopting new technologies to foster economic development and ensure equitable access to clean transportation. Here, we present a set of narrative scenarios for the future of the Kenyan transport-energy system co-developed through engagement with 41 local experts and decision-makers. Through the co-development of a Kenyan transport-energy system model, we present a decision-support tool, populated with those scenarios, to assist policymakers at regional, national and international levels in building policy and investment pipelines to support low-carbon economic growth. We find that Kenya’s transport-energy system can meet both development and climate goals, but this demands strong policy support for efficient public transport and targeted support for road vehicle electrification. Increased support for non-motorised transport is essential to provide equitable access to services and economic opportunities. Favourable pathways result in significant e-mobility uptake, which is anticipated to increase electricity demand by 5%–56% from 2023 to 2040, relative to the IEA Kenya Energy Outlook’s Stated Policies scenario, representing a 2.7–3.9x increase in Kenya’s total electricity demand over the same period. From a macro-fiscal perspective, results show that e-mobility has two important consequences for Kenya. Firstly, under high e-mobility scenarios, there is a negative fiscal impact that taxation revenues from the sale of transport fuels reduce by up to 41% relative to the low e-mobility scenario (though, notably, they still increase marginally from the 2023 level because of increasing transport demand). Secondly, high e-mobility scenarios have a positive impact on balance of payments by reducing the fuel import bill by up to 69% relative to the low e-mobility baseline. This corresponds to a reduction in foreign exchange requirement of up to $4.2bn annually by 2050.

The Impact of Cultural Capital on Economic Growth Based on Green Low-Carbon Endogenous Economic Growth Model

This paper incorporates cultural capital, urbanization development level and carbon emission reduction input as endogenous factors into the endogenous economic growth model. By using optimal control theory and based on empirical analysis, this paper explores the relationship between cultural capital and green low-carbon endogenous economic growth. This paper finds that at the company level, cultural capital improves the technical efficiency and institutional efficiency of firms and then promotes economic growth. At the government level, cultural capital and government investment in urban fixed cultural assets promotes economic growth. At the resident level, the transformation of cultural capital into environmental protection awareness promotes firms and residents to independently practice green low-carbon behaviors. Firms can independently research and develop green low-carbon digital science and technology and produce green low-carbon digital goods, and residents can engage in green digital consumption, thereby reducing carbon emissions and carbon emission input and promoting economic growth. This paper explores the role of cultural capital in firms’ R&D, then promotes green low-carbon transformation of firms by exploring the role of cultural capital in government investment, promoting the government to increase investment in green low-carbon cultural education, exploring the impact of cultural capital on the thinking and behavior of firms and residents, and promoting the independent practice of green low-carbon behavior by firms and residents, ultimately promoting the development of a green low-carbon economy.

Research on the Measurement of Low-Carbon Competitiveness of Regional Cold Chain Logistics Capacity Based on Triangular Fuzzy Evaluation Rating–Gray Correlation Analysis

Cold chain logistics is an industry that generates high levels of carbon emissions. In the context of a low-carbon economy, it is crucial to recognize the low-carbon competitiveness of regional cold chain logistics and to implement effective measures to guide the development and improvement of their low-carbon competitiveness. This is essential for transitioning the economic development model and promoting low-carbon economic growth. This article proposes a low-carbon competitiveness evaluation model known as the Triangular Fuzzy–Gray Correlation Evaluation Model. This model is based on the Triangular Fuzzy Theory and Gray System Theory. According to the calculated logistics low-carbon competitiveness index, a scatter plot is used to rank and classify the evaluation objects. This method utilizes triangular fuzzy numbers as evaluation levels and further expands upon them by introducing the concept of gray correlation in group decision making. By constructing relative closeness based on curve similarity, the improved method possesses a strong ability to capture information and objectivity compared to traditional models. The selected critical indicators cover four significant aspects: low-carbon environment, low-carbon flow service capability, energy consumption in cold chain logistics, and low-carbon energy transition. Empirical research is being conducted using relevant data from Henan in 2022. The measured results are divided into four levels of competition. Using the diamond model, this study analyzes the development of low-carbon cold chain logistics at different levels in each city and provides corresponding recommendations.

The Impact of Energy Consumption and Economic Growth on the Saudi Arabia’s Carbon Emissions

This study is an initial attempt to examine the correlation between energy consumption and economic growth in Saudi Arabia's carbon emissions from 1985 to 2021. Notably, despite the prominence of low-carbon economic growth in the Paris Agreement and the Sustainable Development Goals, this specific link has yet to be previously investigated. The study used an autoregressive distributed lag (ARDL) approach to analyse the relationship between carbon emissions from energy consumption and economic development in Saudi Arabia. The bound test shows that the relationship has been going on for a long time, and the error correction equation shows that the endogenous and exogenous variables are negatively related by 0.58. This indicates that the system adjusts its previous period's imbalance by 58% within a single period. The Granger causality test reveals a one-way causal relationship between energy use and carbon dioxide emissions, economic growth, and oil consumption. Additionally, the generation of energy through oil-based power plants is known to result in the release of carbon emissions, although in a unidirectional manner. It is necessary to prioritize exploring alternate methods for power generation, particularly those that rely on non-conventional or renewable energy sources.

Quantifying digital economy and green initiatives for carbon neutrality targets: a Kilian bias-adjusted bootstrap model evaluation of China economy.

Digitalization has emerged as a new hope for low-carbon sustainable economic growth after its successful trial during the COVID-19 measures. Therefore, both developed and developing economies focus on digitalization to cope with carbon neutrality targets. Thus, this study attempted to generate a meaningful relationship between the digital economy and green energy, innovation, and environmental tax policy to capture the role of factors in acquiring carbon neutrality. For the abovementioned objectives, modern econometric methods, such as the Kilian bias-adjusted bootstrap, were adopted to evaluate the Chinese dataset between 1990 and 2021. The results indicate that the study factors play a significant role in acquiring carbon neutrality in the long-term Chinese economy. Furthermore, quantile autoregressive distributed lag model (QARDL) indicates that all the factors influence carbon neutrality in various quantiles. Consequently, the digital economy, green energy and innovation, and environmental taxes significantly assist in attaining carbon neutrality in the long term, and the ecological Kuznets curve prevails in the economy. Therefore, radical and wide-ranging policy implications are required in many areas including environmental restrictions, digital economy promotion, green and sustainable technologies, and clean energy sources.

Spatial convergence characteristics of low carbon economy and economic growth quality: based on Guangdong urban data

<abstract> <p>As China's economy transitions from a stage of high-speed growth to a stage of high-quality development, the concept of low-carbon and green economic development has gained increasing popularity. Mastering the regional differences and changing patterns of low-carbon economy and economic growth quality is an important prerequisite for further promoting low-carbon economic development and improving the quality of economic growth. Taking the data of 21 prefecture-level cities in Guangdong Province from 2008 to 2019 as examples, we calculated the low-carbon economy and the quality index of economic growth, and analyzed the convergences between them through coefficient of variation analysis and a panel data convergence model with fixed effects. The results showed that: First, the convergence of low-carbon economy was better than the convergence of economic growth quality. Second, the low-carbon economy of Guangdong Province had σ convergence, and the imbalance between regions of low-carbon economy was alleviated, but the quality of economic growth of Guangdong Province did not have σ convergence. Third, there was absolute and conditional <italic>β</italic> convergence in the quality of low-carbon economy and economic growth in Guangdong Province. Fourth, the convergence rate of low-carbon economy in Guangdong Province showed "club difference"; the same was true of σ convergence, absolute <italic>β</italic> convergence, conditional <italic>β</italic> convergence, and dimensional convergence of economic growth quality in various regions of Guangdong Province. The exploration conducted in this article was conducive to better grasping the changing patterns of low-carbon economy and economic growth quality, enriching relevant research. The conclusions of this paper can provide decision-making basis for China to formulate urban and regional economic policies, achieve high-quality economic development, and "double carbon goal".</p> </abstract>

Determinants of global carbon emission and aggregate carbon intensity: A multi-region input−output approach

A deep understanding of the drivers behind aggregate carbon indicators, including carbon emissions and carbon intensity, is essential for achieving low-carbon economic growth. However, integrated analysis incorporating both indicators remains limited. Using a multi-region input-output model and structural decomposition analysis, we examine the determinants behind the changes in carbon indicators during 2000–2014. Our findings reveal the efficacy of global carbon reduction strategies, characterized by a decline in total emissions increase and an accelerated reduction in carbon intensity. Further decomposition shows that the carbon efficiency effect is the primary factor in reducing the carbon indicators by improving sectoral direct carbon intensity. The input structure effect is the second largest contributor, mainly resulting from the decarbonization of intermediate inputs in the supply chain. The final demand effect is the main impediment due to the steady growth of consumption and investment demand across economies.

Examining the Effects and Operational Mechanisms of Green Credit on Carbon Emissions in Chinese Regions

The utilization of a green financial system, particularly through the implementation of green credit, plays a pivotal role in fostering environmentally sustainable, low-carbon economic growth and facilitating the transition toward a more ecologically responsible economy. This paper employs a two-way fixed-effects model, utilizing provincial panel data spanning from 2012 to 2020, to investigate the influence of green credit on regional carbon emissions within different regions of China. The results reveal a significant reduction in carbon emissions as a consequence of the green credit program’s implementation. The analysis of the pathway indicates that green credit is instrumental in mitigating carbon emissions by instigating shifts in the energy mix, with evidence suggesting a partial mediating effect. Furthermore, a heterogeneity analysis discovered that the suppressive impact of green credit on carbon emissions is more pronounced in the eastern and western regions of China, while it is less significant in the central and northeastern areas. The implications of this study provide robust evidence in support of the role of green credit in reducing carbon emissions and can serve as a valuable resource for policymakers aiming to promote the expansion of green credit programs and, in turn, contribute to substantial reductions in carbon emissions.

Transformational insurance and green credit incentive policies as financial mechanisms for green energy transitions and low-carbon economic development

This study examines the critical role of green technology innovation in facilitating green and low-carbon economic development. It underscores the necessity of financial backing via green finance policies to address financing and risk challenges associated with such an energy transition. A dynamic stochastic general equilibrium (DSGE) model, inclusive of the banking and insurance sectors, is constructed to proffer transformational insurance and green credit services to energy producers. Key findings include a decrease in deductibles, improved insurance coverage, enhanced green output, and an advancement of green and low-carbon economic growth. Transformational insurance is found to temper the negative impacts of unexpected risk shocks on overall output and employment. Moreover, green credit incentives not only curb carbon emissions but also heighten the likelihood of energy transition among producers, thereby fostering low-carbon economy growth. The combined application of transformational insurance and green credit incentive policy proves more effective in propelling energy transition and green economic growth than the deployment of either policy in isolation. The research concludes with a call for the government to strike a balance in carbon emission reduction efforts to avoid decelerating the overall output and consumption growth rates, thereby ensuring the sustainability of green and low-carbon economic development.

Analisis Pengaruh Keterbukaan Perdagangan, Konsumsi Energi, dan Pertumbuhan Ekonomi terhadap Emisi Karbon di Negara D-8

Carbon emissions are one of the main causes of global climate change. High carbon emissions can hinder long-term economic growth. The purpose of this research is to analyze the influence of Trade Openness, Energy Consumption, and Economic Growth variables on CO2 Emissions in D-8 countries (Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey) during the period of 1992 to 2021 using the Autoregressive Distributed Lag (ARDL) panel model. The results of the study indicate that Economic Growth in D-8 countries has a positive long-term effect on CO2 Emissions but has no short-term effect. The Energy Consumption variable has a short-term effect on CO2 Emissions. However, Trade Openness does not have a short-term or long-term effect on CO2 Emissions. Therefore, it is expected that D-8 countries pay attention to policies that encourage investment in renewable energy, incentives for energy efficiency, and regulations that reduce emissions from specific sectors, which can help achieve sustainable and low-carbon economic growth.

Role of energy consumption, tourism and economic growth in carbon emission: evidence from Kuwait

Even though the Paris Agreement and the Sustainable Development Goals say that low-carbon economic growth is essential, more research must be done to determine how the tourism sector affects carbon productivity. So, to see if increased energy usage, tourism, and economic growth jointly raise carbon productivity in Kuwait, this study uses a vector error correction strategy to look at the years 1995–2020. Predictions about how sustainable tourism will affect energy efficiency, and carbon productivity improvements are also an excellent way to learn more about this subject. As the amount of carbon dioxide in the air increases, tourism will go down by 0.13 percent. Inverse cointegration is the term for this phenomenon. However, the vector error correction model showed that carbon emissions go down as the economy grows and people pay more attention to how much energy they use. Nevertheless, Granger’s theory of cause and effect says that carbon emissions, energy use, and economic growth can only lead to more tourism in one way.

Effects of Oil Consumption, Urbanization, Economic Growth on Greenhouse Gas Emissions: India via Quantile Approach

Although low-carbon economic growth has been emphasized in both the Paris Agreement and the Sustainable Development Goals, this is the first study to examine the interplay between oil consumption, urbanization, and economic growth in India's GHG emissions from 1965 to 2021. A quantile regression analysis found that a one percent rise in greenhouse gas emissions is linked to a 0.34 percent rise in economic growth, a 0.599 percent rise in oil consumption, and a 0.28 percent drop in urbanization. Using the Granger causality technique, researchers found that CO2 emissions cause economic development and urbanization in only one direction. On the other hand, oil consumption only has a one-way influence on carbon emissions and urbanization, and economic expansion only has a one-way effect on urbanization.

Economic resilience assessment and policy interaction of coal resource oriented cities for the low carbon economy based on AI

This study aims to evaluate the economic growth of coal-resource-oriented cities under Low-Carbon (LC) economic growth. The public participation mechanisms are promoted, and the vitality of the economic market of resource-oriented cities is enhanced by increasing the intervention of government policies. Firstly, the context of the coal-resource-oriented cities and LC economy are analysed. Secondly, an economic resilience assessment system for coal-resource-oriented cities is established, characterized by traditional and high-tech industries through the analysis of the condition of resource-oriented cities. Finally, in the process of optimizing and managing the economic structure, the assessment of the LC evolution path of resource-oriented cities is strengthened through the extensive participation of the general public. The results show that the economic resilience level of coal-resource-oriented and traditional cities fluctuates and increases from 2011 to 2021. In 2011, the economic resilience index of traditional cities and coal-resource-oriented cities was 0.11and 0.22. By 2021, traditional cities’ and coal-resource-oriented cities’ economic resilience assessment stability was 0.527 and 0.562. This study has pivotal reference value for promoting urban resource management and economic efficiency.