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Original scientific paper

Dynamic nexus between transportation, economic growth and environmental degradation in China: Fresh insights from the QARDL approach

Shiqi Liu
Cong Li
Noshaba Aziz
Ali Raza

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The continuous growth of the transport sector and the increase
in transportation carbon emissions attract policymakers’ attention.
It is of great importance to understand the determinants of pollution
from transportation. This study explores the dynamic nexus
between transportation, growth, and environmental degradation
in China. The QARDL approach is used for the empirical investigation
of data series from 1995 to 2018. The findings exposed
mixed results in both the long and short run. The result for
freight transportation only improves the environment at upper
extreme quantiles, while the results are insignificant in the short
run. The results show that passenger transportation reduces CO2
emissions at the lower bottom quantiles in the long run, while
the results are significant at upper extreme quantiles in the short
run. In the case of GDP, the results endorsed the EKC hypothesis
in the long run, while in short-run dynamics, the results for GDP2
are found insignificant, which elaborates that China’s economic
growth enhances the CO2 emissions. Besides, the quantile causality
test showed a bi-directional causality between all variables.
The findings of this study provide concrete evidence to the policymakers
of China to strengthen the sustainable transportation
system by promoting eco-friendly and energy-efficient modes of


Transportation; economic growth; CO2 emissions; QARDL; China

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