Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy
Environmental problems such as climate change have brought to light the necessity of implementing more stringent environmental regulations and expanding the use of renewable energy sources in order to protect the environment and maintain a green ecosystem. As a result, this study aims to investigate...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-10-01
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| Series: | Frontiers in Psychology |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fpsyg.2022.905270/full |
| _version_ | 1811338813194108928 |
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| author | Qiang Fu Junwei Wang Yonghui Xiang Samina Yasmeen Bojun Zou |
| author_facet | Qiang Fu Junwei Wang Yonghui Xiang Samina Yasmeen Bojun Zou |
| author_sort | Qiang Fu |
| collection | DOAJ |
| description | Environmental problems such as climate change have brought to light the necessity of implementing more stringent environmental regulations and expanding the use of renewable energy sources in order to protect the environment and maintain a green ecosystem. As a result, this study aims to investigate the impact of China’s financial development and consumption of renewable energy on the country’s environmental quality from 2009 to 2019. Following the application of the ARDL method, this research begins by employing the NARDL (non-linear autoregressive distributive lag) model in order to analyze 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 co-integrated. This enables the application of the ARDL methodology. The ARDL bound test findings show a positive relationship that exists over the long-term between financial development, trade openness, renewable energy consumption, economic growth, and CO2 emissions. In addition, the error correction model (ECM) 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 for a longer time than 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 supports the idea that both the positive and negative aspects of financial development have an equally significant impact. |
| first_indexed | 2024-04-13T18:17:06Z |
| format | Article |
| id | doaj.art-773426de8dcd440ba0336aee14773c9e |
| institution | Directory Open Access Journal |
| issn | 1664-1078 |
| language | English |
| last_indexed | 2024-04-13T18:17:06Z |
| publishDate | 2022-10-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Psychology |
| spelling | doaj.art-773426de8dcd440ba0336aee14773c9e2022-12-22T02:35:39ZengFrontiers Media S.A.Frontiers in Psychology1664-10782022-10-011310.3389/fpsyg.2022.905270905270Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economyQiang Fu0Junwei Wang1Yonghui Xiang2Samina Yasmeen3Bojun Zou4School of Economics, Shandong University, Jinan, ChinaSchool of Media and Law, Ningbo Tech University, Ningbo, ChinaSchool of Economics and Management, Zhejiang University of Science and Technology, Hangzhou, ChinaGovernment Special Education Center Daultala, Rawalpindi, PakistanSchool of International Education, Changchun Institute of Technology, Changchun, ChinaEnvironmental problems such as climate change have brought to light the necessity of implementing more stringent environmental regulations and expanding the use of renewable energy sources in order to protect the environment and maintain a green ecosystem. As a result, this study aims to investigate the impact of China’s financial development and consumption of renewable energy on the country’s environmental quality from 2009 to 2019. Following the application of the ARDL method, this research begins by employing the NARDL (non-linear autoregressive distributive lag) model in order to analyze 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 co-integrated. This enables the application of the ARDL methodology. The ARDL bound test findings show a positive relationship that exists over the long-term between financial development, trade openness, renewable energy consumption, economic growth, and CO2 emissions. In addition, the error correction model (ECM) 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 for a longer time than 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 supports the idea that both the positive and negative aspects of financial development have an equally significant impact.https://www.frontiersin.org/articles/10.3389/fpsyg.2022.905270/fullglobal warmingrenewable energy projectsNARDL modelfinancial developmentenvironmental quality |
| spellingShingle | Qiang Fu Junwei Wang Yonghui Xiang Samina Yasmeen Bojun Zou Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy Frontiers in Psychology global warming renewable energy projects NARDL model financial development environmental quality |
| title | Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy |
| title_full | Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy |
| title_fullStr | Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy |
| title_full_unstemmed | Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy |
| title_short | Does financial development and renewable energy consumption impact on environmental quality: A new look at China’s economy |
| title_sort | does financial development and renewable energy consumption impact on environmental quality a new look at china s economy |
| topic | global warming renewable energy projects NARDL model financial development environmental quality |
| url | https://www.frontiersin.org/articles/10.3389/fpsyg.2022.905270/full |
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