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Exploring the asymmetric determinants of consumption and production-based CO2 emissions in China

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Abstract

Environmental pollution has intensified significantly in the last few decades. Policymakers have considered this issue due to its direct influence on human lives throughout the globe. This study explores the asymmetric determinants of consumption-based and production-based CO2 emissions for China, for time horizon 1990–2019. ARDL and NARDL regression approaches have been adopted for empirical investigation. The ARDL regression method reveals that GDP does not produce any impact on production-based and consumption-based CO2 emissions, while energy use contributes as an increasing determinant of consumption-based and production-based CO2 emissions in the long-run. The NARDL regression method reveals that a positive shock in GDP is beneficial for a decline of consumption-based CO2 emissions, while it does not reduce production-based CO2 emissions in the long-run. However, negative shock in GDP contributes as an increasing determinant of consumption-based CO2 emissions. Results also report that positive shock in energy use behaves as an increasing agent of consumption-based and production-based CO2 emissions in the long-run, while negative shock in energy use produces a decline in production-based CO2 emissions in the long-run. Thus, policymakers should adopt such demand and supply sides’ management policies that contribute to controlling CO2 emissions.

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The datasets/materials used and/or analyzed for the present manuscript are available from the corresponding author on reasonable request.

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The idea was given by Juan Yang and Muhammad Hafeez. Juan Yang, Muhammad Hafeez, Atif Khan Jadoon, and Israt Zhan have done the data acquisitions, analysis, and written the whole draft. Juan Yang and Ruafhon Salahodjev read and approved the final version.

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Correspondence to Muhammad Hafeez.

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Responsible Editor: Ilhan Ozturk

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Hafeez, M., Yang, J., Jadoon, A.K. et al. Exploring the asymmetric determinants of consumption and production-based CO2 emissions in China. Environ Sci Pollut Res 29, 65423–65431 (2022). https://doi.org/10.1007/s11356-022-20448-y

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