The Nexus between Technological Innovation and Carbon Dioxide Emissions: Evidence from China

  • Sarfaraz Ahmed Shaikh Associate Professor, Deptt: Business Administration, Newports Institute of Communication and Economics, Karachi
  • Zainab Taiyyeba Newports Institute of Communication and Economics, Karachi
  • Khalid Khan Associate Professor, Deptt: Economics, LUAWMS, Uthal, Balochistan
Keywords: Environmental Degradation, Technological Innovation, Environmental Kuznets Curve (EKC) and China

Abstract

This study inspects the dynamic effect of technological innovation, financial development, economic growth, and energy consumption on carbon dioxide (CO2) emissions. We applied the auto-regressive distributed lag (ARDL) model technique for the period from 1980 to 2017. The quantitative outcomes show a negative and insignificant relationship between technological innovation and environmental pollution in China during the said period. Furthermore, the long-run assessment results disclose that economic growth; boost-up the environmental quality of China. Thus, the results support the Environmental Kuznets Curve (EKC) hypothesis, which means that environmental degradation can be resolved inevitably by economic growth. Similarly, results show that the financial sector development exerts a positive impact on environmental quality.

Published
2018-12-15