4.5 Article

Which Factors Determine CO2 Emissions in China? Trade Openness, Financial Development, Coal Consumption, Economic Growth or Urbanization: Quantile Granger Causality Test

Journal

ENERGIES
Volume 15, Issue 7, Pages -

Publisher

MDPI
DOI: 10.3390/en15072450

Keywords

financial development; CO2 emissions; economic growth; trade openness; quantile Granger causality test

Categories

Funding

  1. Wuhan University
  2. National Taichung University of Science and Technology
  3. Feng Chia University
  4. Asia University
  5. China Medical University Hospital
  6. Hang Seng University of Hong Kong
  7. Hubei University of Economics
  8. Research Grants Council (RGC) of Hong Kong [12502814, 12500915]
  9. Ministry of Science and Technology (MOST), Taiwan [106-2410-H-468-002, 107-2410-H-468-002-MY3]

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This study analyzes the determinants of CO2 emissions in China using the Granger causality test and a Quantile approach. The results identify urbanization, financial development, and openness to trade as the leading factors influencing CO2 emissions in China. The findings contribute to the understanding of climate change issues and have important implications for pollutant reduction policies in China.
The current study employs a Granger causality test within a Quantile approach investigating CO2 emission determinants in China. Results show urbanization, financial development and openness to trade are leading determinants of CO2 emissions in China. These results highlight climate change issues while taking advantage of a new methodology to fill a gap in the current literature. Our findings show key implications for PRC government policy related to pollutant reduction policy.

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