What role economic growth and sustainability-oriented innovation play on the level of carbon emission: case of China

Abstract

Globally, carbon dioxide (CO2) emission is a significant element of environmental pollution because of corrupt economic activities that requires regulators’ focus and researchers’ emphasis. Hence, the current research evaluates economic growth on CO2 emissions in Chinese economy. The article has taken six factors of economic growth on board along with sustainable innovation to predict CO2 emissions. Secondary data, in this regard, has been used which has been borrowed from World Bank from 1986 to 2020. Augmented Dickey-Fuller test is employed to scrutnize unit root, while QARDL model has been run to identify the association between the constructs. Findings revealed that factors such as gross domestic product, national income, human capital, employment ratio, inflation and exports signifies CO2 emissions, hence are corrupt the environment. While sustainability oriented innovation reduces the emissions. This study monitors the policymakers while formulating regulators related to reducing the level of CO2 emission using economic growth factors and sustainability-oriented eco-innovation.

Keywords:

• CO2 emission
• gross domestic product
• national income
• human capital
• employment ratio
• inflation
• sustainability-oriented eco-innovation

JEL CODES:

• O47; Q55; Q5

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This research is partly funded by the University of Economics Ho Chi Minh City (UEH), Vietnam. This research is partly funded by Van Lang University Ho Chi Minh City, Vietnam.