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The nexus of green investment, high-quality economic development, and carbon emissions in China: evidence according to an ARDL–ECM approach

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Abstract

Previous studies examined the impact of finance on CO2 emissions; however, relatively few studies have explored the role of green investment in carbon reduction. In this study, we assessed the relationship between green investment, high-quality economic development, and carbon emissions in China. Based on the evaluation of three first-level indicators of economic development, social life, and ecological environment from 2001 to 2020, the index of China’s high-quality economic development level was calculated and performed analysis using an autoregression-distributed lag error-correction model. The results confirmed a long-term cointegration relationship between the three variables in China. In the long term, green investment is conducive to high-quality economic development and carbon-emissions reduction. During the process of high-quality economic development, carbon emissions will be reduced, and high-quality economic development and carbon emission reduction are also conducive to the increase of green investment. Second, in the short term, high-quality economic development and green investment demonstrate different mechanisms of influence on carbon emissions during the lag period. These findings suggest that investment in green energy should be strengthened, and the concept of green development should be adhered to in order to promote green economy to help improve China's environmental quality.

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All data generated or analysed during this study are included in its supplementary information files.

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Acknowledgements

This work was supported by Periodical Achievement of "Public Administration" of Guangdong Provincial Characteristic Key Discipline Construction (F2017STSZD01), Key Platform youth Innovation Project of Universities in Guangdong Province (No.2021WQNCX112), 2020 General project of Guangzhou Xinhua University (No.2020KYYB09) and The 14th Five-year Plan for the development of Philosophy and Social Sciences in Guangzhou (No: 2022GZYB16).

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Authors and Affiliations

  1. School of Economics and Trade, Guangzhou Xinhua University, Guangzhou, Guangzhou, China

    Yuanyuan Wan

  2. School of Tourism and Business, Guangzhou Panyu Polytechnic, Guangzhou, Guangzhou, China

    Haiyang Su

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  1. Yuanyuan Wan
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Correspondence to Yuanyuan Wan or Haiyang Su.

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Appendix

Appendix

Calculation results of high-quality economic development index.

Year

EHQ (%)

Year

EHQ (%)

Year

EHQ (%)

Year

EHQ (%)

2001

31.13

2006

34.28

2011

40.14

2016

56.63

2002

32.27

2007

40.16

2012

46.37

2017

57.85

2003

33.52

2008

41.61

2013

47.77

2018

60.41

2004

33.59

2009

39.91

2014

48.5

2019

65.1

2005

33.15

2010

44.37

2015

50.01

2020

69.75

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Wan, Y., Su, H. The nexus of green investment, high-quality economic development, and carbon emissions in China: evidence according to an ARDL–ECM approach. Environ Dev Sustain (2023). https://doi.org/10.1007/s10668-023-03585-3

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