Dynamic and casual association between green investment, clean energy and environmental sustainability using advance quantile A.R.D.L. framework

Figures & data

Figure 1. Trend of G.I. in China.

Source: The authors.

Table 1. Descriptive statistics.

Description	CO2	GI	CE	GDP	GDP^2
Mean	1.257	1.005	1.469	3.539	7.235
Median	1.222	1.006	1.447	3.524	7.204
Maximum	1.532	1.284	1.706	4.034	8.225
Minimum	0.865	0.688	1.231	2.988	6.135
Std. Dev.	0.428	0.248	0.344	0.447	1.052
Skewness	0.319	−0.216	0.157	0.069	0.358
Kurtosis	1.933	4.073	1.421	1.883	2.172
Jarque-Bera	8.523	6.817	15.430	7.745	8.033
Probability	0.000	0.000	0.000	0.000	0.000

CO₂ = Carbon emission M.T. per capita, GI = Green Investment converted from million yuan to Millions U.S.D. using real exchange rate, CE = Clean energy represented by the consumption of renewable energy, G.D.P. gross domestic product (constant U.S.D.. CO2 emission is measured in terms of metric tons per capita, GI investment measures in U.S.D., clean energy measures in terms of total investment in such projects observed through U.S.D., G.D.P. measures in current U.S.D.. All the values are converted into natural logarithm.

Source: The authors.

Table 2. Unit root test.

Variable	CO2	GI	CE	GDP
ADF (Level)	−0.120	−1.795	−1.752	−2.513
ADF (Δ)	−3.620***	−3.432***	−3.728***	−4.526***
ZA (Level)	−3.420**	−1.502	−0.958	−1.317
Year	2007Q4	2015Q1	2011Q2	2008Q1
ZA (Δ)	−3.985***	−4.965***	−5.526**	−5.248***
Year	2007 Q3	2010Q4	2007Q1	2011Q2

CO₂ = Carbon emission M.T. per capita, G.I. = Green Investment converted from million yuan to Millions U.S.D. using real exchange rate, C.E. = Clean energy represented by the consumption of renewable energy, G.D.P. gross domestic product (constant U.S.D.). ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively.

Source: The authors.

Table 3. Quantile estimation results.

Quantiles	Constant	ECT	Long-Run results				Short-run Results
	α	ρ	βGI	βCE	βGDP	βGDP^2	φ1 (CO2)	ω0 (GI)	λ0 (CE)	θ0(GDP)	δ0 (GDP^2)
0.05	2.519**	−0.161	−0.662**	−0.035*	0.492**	−0.232	0.436***	−0.085	0.095	0.060	−0.145
0.10	0.195	−0.218	−0.836**	−0.177*	1.294**	−0.15	0.430***	0.0940	0.096	0.151	−0.226
0.20	0.907*	−0.21	−0.982**	−0.474	2.764**	−0.048	0.381***	0.0.54	0.010	0.274*	−0.226
0.30	0.891*	−0.216	−0.289***	−0.532	3.634**	−0.044	0.365***	0.030	0.022	0.184**	−0.224
0.40	0.956**	−0.213	−0.398*	−0.335**	2.204**	−0.191	0.341***	0.039	0.034	0.309**	−0.202
0.50	0.803**	−0.213**	−0.417***	−0.332**	1.612**	−0.297	0.425***	−0.0414*	0.047	0.376**	−0.173
0.60	0.523	−0.203**	−1.441***	−0.103**	1.425**	−0.356***	0.401***	−0.098**	0.080**	0.318**	−0.150
0.70	0.382	−0.187**	−1.551*	−0.160**	1.425**	−0.259***	0.436***	−0.0875*	−0.083**	0.260*	−0.153
0.80	0.372	−0.198**	−1.655	−0.139**	1.512*	−0.217**	0.449***	−0.163***	−0.063**	0.261*	−0.291
0.90	1.503**	−0.131**	−1.748	−0.132**	1.396*	−0.305***	0.443***	−0.176***	−0.065**	0.104	−0.265
0.95	1.57*	−0.062	−0.988	−0.273	1.517	−0.562**	0.461***	−0.122**	−0.059**	0.060	−0.145

Note: The table reports the quantile estimation results. The standard errors and t values are not report for the sake of brevity. ***, ** and * indicate significance at the 1%, 5% and 10% levels, respectively. CO2 = Carbon emission M.T. per capita, G.I. = Green Investment converted from million yuan to Millions U.S.D. using real exchange rate, C.E. = Clean energy represented by the consumption of renewable energy, G.D.P. gross domestic product (constant U.S.D.).

Source: The authors.

Table 4. Results of the Wald Test for the constancy of parameters.

Variables	Wald-Statistics [p-value]
Long-Run Parameters
ρ	5.928*** [0.000]
βGI	7.418*** [0.000]
βCE	5.726*** [0.000]
βGDP	8484*** [0.000]
βGDP^2	3.728*** [0.000]
Short-run parameters
φ1	8.923*** [0.000]
ω0	2.652** [0.047]
λ0	2.415* [0.071]
θ0	1.213 [0.326]
δ0	0.976 [0.792]

Null hypotheses: Parameters are constant, CO₂ = Carbon emission M.T. per capita, G.I. = Green Investment converted from million yuan to Millions U.S.D. using real exchange rate, C.E. = Clean energy represented by the consumption of renewable energy, G.D.P. gross domestic product (constant U.S.D.).

Source: The authors.

Table 5. Test results of G.C. in quantile.

Quantiles	[0.05–0.95]	0.05	0.10	0.20	0.30	0.40	0.50	0.60	0.70	0.80	0.90	0.95
ΔGIt to CO2t	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ΔCO2t to ΔGIt	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ΔCEt to CO2t	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ΔCO2t to ΔCEt	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ΔGDPt to CO2t	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ΔCO2t to ΔGDPt	0.337	0.682	0.614	0.764	0.736	1.032	0.544	0.456	0.995	0.910	0.832	0.902
ΔGIt to CEt	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
ΔCEt to ΔGIt	0.641	0.625	0.675	0.514	0.563	0.472	0.563	0.618	0.652	0.605	0.430	0.712

Null hypothesis: No Casual association exist, CO₂ = Carbon emission M.T. per capita, G.I. = Green Investment converted from million yuan to Millions U.S.D. using real exchange rate, C.E. = Clean energy represented by the consumption of renewable energy, G.D.P. gross domestic product (constant U.S.D.).

Source: The authors.