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Environmental sustainability targets: the role of green investment, ICT development, and economic growth

Bo Fan
Huawei Zhao
Hafiz Waqas Kamran
Safdar Husain Tahir

Puni tekst: engleski pdf 2.063 Kb

preuzimanja: 255



Current research investigates the role of green investment, information,
and communication technology development growth in the
Chinese economy’s carbon emissions from 1985-2015. This study has
applied the quantile autoregressive distributed lagged (QARDL)
approach and the Granger-causality in the quantiles to examine the
causal linkage between the variables of interest. The findings
through QARDL estimation confirm that there is an existence of significant
reversion to the long-run equilibrium association between
the explanatory variables and CO2. More specifically, the outcomes
under long-run estimation confirm that GIN and ICT development
plays a significant role in combating the issues like higher CO2 in
China. At the same time, more economic growth leads to the
destruction of the natural environment with higher carbon emissions.
However, the square of economic growth shows some fruitful
results towards fighting environmental pollution but not in all the
quantiles of the study. Besides, the Granger-causality outcomes confirm
the presence of a bi-directional association between green
investment, ICT development, economic growth, and its square
value. Based on the study findings, some policy implications are also
provided. Besides, various limitations are also linked with this study.
Firstly, the current study only examines the trends in CO2 emission
from the context of China, whereas other regional economies are
entirely neglected. Secondly, the factors like governmental influence
in controlling carbon emission, environmental regulations, and governance
mechanisms are entirely neglected in this research. Thirdly,
the robust checking of the empirical findings is also missing in this
study. Fourthly, economic uncertainty would also contribute to
environmental pollution like CO2. Therefore, it is suggested that
future studies should focus on these limitations to provide some
meaningful suggestions and literature contributions.

Ključne riječi

Green investment; carbon emission; economic growth; ICT development; China

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