Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy

Frontiers in Psychology

article

Qiang Fu¹  Junwei Wang²  Yonghui Xiang³  Samina Yasmeen⁴  Bojun Zou⁵ 

[1] School of Economics, Shandong University;School of Media and Law, Ningbo Tech University;School of Economics and Management, Zhejiang University of Science and Technology;Government Special Education Center Daultala;School of International Education, Changchun Institute of Technology

关键词: Global Warming;    renewable energy projects;    NARDL model;    Financial Development;    Environmental quaitty;   

DOI  :  10.3389/fpsyg.2022.905270

学科分类：社会科学、人文和艺术（综合）

来源: Frontiers

【 摘 要 】

To ensure environmental sustainability and a green ecosystem, environmental issues such as climate change have emphasized the need for stricter environmental regulations and the development of green energy resources. Therefore, this study investigates the impact of financial development and renewable energy consumption on environmental quality of China from 2009-2019. Following the application of the ARDL method, this research begins by employing the NARDL (nonlinear autoregressive distributive lag) model in order to analyse the asymmetry in the data that results from the presence of either positive or negative aspects of financial development. The results of the NARDL bound test indicate that the variables are long-term cointegrated. This enables the application of the ARDL methodology. The findings of the ARDL bound test indicate that there is a positive relationship that exists over the long term between financial development, renewable energy consumption trade openness, economic growth, and CO2 emissions. In addition, the error correction model (ECM) confirms that provides evidence that there is, at least in the short run, a connection between CO2 emissions, financial development, economic growth, and energy consumption. Furthermore, according to a dynamic multiplier graph, the positive aspect of financial development has a greater influence on carbon emissions over the course of a longer period of time compared to the shocks associated with a less favorable financial development. According to the findings, there does not appear to be any asymmetry between CO2 emissions and financial development, which lends support to the idea that both the positive and negative aspects of financial development have an equally significant impact.

【 授权许可】

CC BY