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Athari, S.A.; Kirikkaleli, D.; Özbay, R.; , . Environmental Sustainability in China. Encyclopedia. Available online: https://encyclopedia.pub/entry/22049 (accessed on 04 August 2024).
Athari SA, Kirikkaleli D, Özbay R,  . Environmental Sustainability in China. Encyclopedia. Available at: https://encyclopedia.pub/entry/22049. Accessed August 04, 2024.
Athari, Seyed Alireza, Dervis Kirikkaleli, Rahmi Özbay,  . "Environmental Sustainability in China" Encyclopedia, https://encyclopedia.pub/entry/22049 (accessed August 04, 2024).
Athari, S.A., Kirikkaleli, D., Özbay, R., & , . (2022, April 20). Environmental Sustainability in China. In Encyclopedia. https://encyclopedia.pub/entry/22049
Athari, Seyed Alireza, et al. "Environmental Sustainability in China." Encyclopedia. Web. 20 April, 2022.
Environmental Sustainability in China
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This entry is adapted from the peer-reviewed paper 10.3390/su14074182

Countries encounter conflicting policy options in reaching fast development goals due to high resource use, rapid economic expansion, and environmental degradation.  The QQ regression outcomes showed that for all tails of a combination of GDP and CO2, the influence of GDP was positive. Furthermore, urbanization impacted CO2 emissions positively in the combination of quantiles of urbanization and CO2. Moreover, the effect of globalization on CO2 emissions was significant and positive for the majority of the tails. Lastly, in a majority of the quantiles, the effect of hydroelectricity consumption on CO2 emissions was negative.

economic growth CO2 emissions urbanization hydroelectricity consumption

1. Introduction

Since the opening up and reform in 1978, China has seen fast economic expansion, surpassing Japan as the globe’s 2nd largest economy in 2010, a phenomenon dubbed the “China Miracle.” With the rapid growth of information technology and industrialization, China’s expanding economy has not only had a significant influence on people’s living conditions but has also piqued the interest of practitioners and academics worldwide. As a consequence, it is critical to investigate and pinpoint the drivers of China’s economic miracle, both theoretically and practically. By sharing valuable economic development experience, China’s economic success can profit several other emerging nations. Moreover, as numerous global environmental issues, especially global warming, gain importance, policymakers around the globe are emphasizing the importance of mitigating GHG emissions. As a result, scholars all over the globe are studying the economic expansion influence on GHGs, such as CO2.
Globalization (GLO) is a worldwide occurrence that influences human lives all around the globe on a political and social level (Kirikkaleli et al., 2020), and it has a greater favorable effect than negative consequences, notably in terms of poverty reduction in developing countries and income disparity. Currently, China ranks third in the world in terms of FDI flows and second in terms of imports [1].
China is swiftly becoming the newest financial source of economic partnership and globalization, owing to new business expansion chances, and the world economy is placing its attention on China. Scholars have debated the globalization–environment interrelationship regularly; nonetheless, mixed findings regarding this connection have surfaced. To put it another way, certain studies demonstrate that globalization reduces sustainability of the environment [2][3], while some scholars [4][5][6] showed that globalization mitigates CO2. The preceding debates illustrate that globalization is gaining some traction and is becoming a powerful champion of the economic expansion of the nation. Globalization, in particular, can assist economic growth by lowering tariffs and taxes whilst enhancing financial development and trade openness (Gundnor et al., 2021). Nevertheless, real growth can lead to environmental degradation, and several studies have found a link between CO2 and economic expansion [7][8][9][10]. Significant numbers of people in China have migrated to urban areas in search of a better living standard and more employment opportunities, leading to the surge in urbanization. In 1960, China’s urban populace accounted for 16% of the total population. Despite this, China’s urban population contributed to 60% of the nation’s total population in 2019. Several studies [11][12][13] established that increased urbanization increase CO2 emissions.
Due to the upsurge in CO2 emissions in China, policymakers have initiated numerous strategies to boost renewable energy usage. China, for instance, has enforced a number of policies to stimulate green energy, such as the 2009 and 2006 policy processes and the subsidy programs in 2010 and 2003, all of which were designed to increase the country’s renewable energy utilization. Hydroelectricity is by far the most common renewable energy source in China. In 2021, other renewable sources of energy contributed to only 5% of the total energy mix, while hydroelectricity contributed to 8% of the total energy mix [14]. The utilization of hydroelectricity and electricity, in particular, is increasing in tandem with China’s growing economic activities. Moreover, China is one of the globe’s top 10 hydroelectricity suppliers. This source of renewable energy could aid in mitigating emissions levels in China. The importance of hydroelectricity in China increased dramatically between 1980 and 2021, as production doubled. Several researchers such as [12][15] established that hydroelectricity aids in mitigating environmental degradation. The above results are mixed findings regarding the relationship between CO2 emissions and economic expansion, globalization, hydroelectricity usage, and urbanization. Therefore, the present empirical investigation is driven by the mixed findings from prior studies.

2. GDP and CO2 Interrelationship

The research of [8] on the CO2–GDP interconnectedness in South Korea utilize data between 1965 and 2019. The investigators applied the wavelet coherence and ARDL tests to examine this association, and their findings revealed that GDP contributed to an upsurge in CO2. Moreover, a unidirectional causal interrelationship surfaced from GDP to CO2. In the same vein, in Chile, Ref. [16] assessed the GDP–CO2 dynamics using the NARDL and data from 1990 to 2018. The outcome of the BDS supported the usage of the NARDL. Furthermore, an increase and decrease in GDP triggered CO2 in Chile whilst there was causality from growth due to CO2. Moreover, Ref. [10] used the frequency domain causality and ARDL approaches and assessed the GDP–CO2 association in Mexico between 1990 and 2018. Their empirical outcome showed that GDP growth and CO2 were positively connected while the causality test showed proof of unidirectional causality from GDP to CO2 in different periods, i.e., short, medium, and long term. In South Africa, the research of [17] showed that an upsurge in GDP impacted CO2 emissions positively, thereby causing environmental havoc. In Indonesia, Ref. [18] assessed the GDP–CO2 association utilizing data from 1965 to 2019. The investigators utilized both time-domain and time-frequency approaches to analyze this linkage. Their empirical outcomes showed that GDP and CO2 were positively linked. The wavelet coherence test also showed positive comovement between GDP and CO2. Similarly, the study of [19] reported a positive GDP–CO2 association in Malaysia.

3. CO2 and Globalization

Utilizing diverse econometric tools to analyze panel data and time series, several researchers have analyzed the connections between CO2 emissions and globalization (GLO). These investigations have shown conflicting outcomes for these two factors, and academics are still divided as to whether globalization boosts CO2 emissions. In addition, Ref. [4] assessed the globalization–CO2 emissions interconnection in 18 Latin American nations utilizing data spanning the period between 1990 and 2014. The investigators used panel ARDL and NARDL to investigate this connection. Their outcomes from the panel ARDL showed positive globalization–emissions interrelationships. Furthermore, the outcomes of the NARDL varied. Likewise, Ref. [20] assessed the interconnectedness between CO2 emissions and globalization. The investigator applied the DOLS and causality tests to assess this interconnection. The study outcome showed a globalization–emissions negative association. In addition, globalization causes CO2 emissions. Utilizing data between 1990 and 2017, Ref. [5] assessed the association between globalization and emissions in 23 African economies. The investigators applied the ARDL and Driscoll–Kraay estimator to assess this connection. The empirical outcomes showed that globalization impacted CO2 pollution negatively. In Turkey, Ref. [21] assessed the CO2–globalization connection. The authors applied the novel dual adjustment approach and FMOLS tests to explore this connection, and their finding showed that GLO impacted CO2 positively. The study of [22] on the CO2–GLO connection in advanced nations utilizing CCEMG and panel Granger causality tests showed that globalization triggered CO2 pollution. Moreover, Ref. [23] explored the CO2–globalization interconnection in Brazil utilizing data spanning from the period 1971–2014.

4. CO2 and Hydroelectricity Consumption

Limited research has assessed the interconnectedness between CO2 and hydroelectricity consumption. In India, Ref. [12] scrutinized the CO2–hydro interrelationship. The authors utilized ARDL to explore this interrelationship. Their empirical outcomes showed that utilization of hydro reduced CO2. Furthermore, the Granger causality showed a two-way causal interrelationship between CO2 and HYDRO in China and India. Likewise, in Malaysia, Ref. [24] looked into the influence of hydroelectricity use on CO2 pollution using a dataset between 1965 and 2010. The investigators applied the cointegration and Granger causality tests to assess this association. Their outcomes showed unidirectional causal linkage from hydroelectricity use to CO2. Similarly, Ref. [25] scrutinized the hydro- CO2 linkage in Malaysia utilizing data stretching from 1988 to 2016 and applied OLS and SUR tests. Their outcomes showed that hydroelectricity use impacted CO2 pollution negatively. This suggests that an upsurge in hydroelectricity curbs CO2. The research of [26] on the hydro- CO2 connection in E-7 nations utilizing panel approaches between 1990 and 2018 showed that hydroelectricity use aids in mitigating environmental degradation.

5. CO2 and Urbanization

The study of [22] investigated urbanisation- CO2 pollution in five selected Latin American nations. The outcome of the study showed causality from URB to CO2. Moreover, Ref. [27] explored the association between CO2 and urbanization in APEC nations. The empirical research outcomes showed that urbanization can predict CO2. Utilizing ARDL and VECM, Ref. [28] assessed the influence of urbanization on emissions in Canada and Australia. The outcomes of the ARDL showed positive urbanization–CO2 association. Furthermore, the causality test showed unidirectional causality from urbanization to CO2 in Canada and Australia. Likewise, the study of [29] on the urbanization–CO2 interconnection in Asian nations showed that urbanization triggered CO2 pollution. Utilizing eight Asian nations, Ref. [30] assessed the urbanization–CO2 pollution linkage utilizing FMOLS and DOLS. The outcomes of the study showed that urbanization triggered CO2 pollution positively. Moreover, Ref. [31] assessed the association between CO2 and population in 32 advanced economies and 155 emerging nations. The investigators utilized panel techniques, and their outcome showed that the population impacted CO2 positively. Utilizing the novel wavelet coherence and ARDL techniques, Ref. [32] looked at the CO2–URB interrelationship in Malaysia between 1970 and 2018. The outcome of the ARDL showed that urbanization impacted CO2 positively.

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Subjects: Environmental Sciences
Contributors MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :
Seyed Alireza Athari
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Dervis Kirikkaleli
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Rahmi Özbay
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Update Date: 22 Apr 2022
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