Do natural resources promote carbon neutrality: The role of green finance

Zhong Yu

Resources Policy, 2024, vol. 88, issue C

Abstract: This study investigates the relationship between carbon emissions and key economic variables in China from 2000Q1 to 2020Q4, using the ARDL method. It reveals that while gross domestic product (GDP) increases emissions, its square inversely affects them, aligning with the Environmental Kuznets Curve (EKC) hypothesis. Natural Resource Rent (NRR) positively impacts emissions, but its combination with green finance yields a mitigating effect.The research's robustness is evident from a high R-squared value of 0.95, a significant F-statistic, and a Durbin-Watson statistic of 2.11, which collectively negate concerns of autocorrelation, serial correlation, heteroskedasticity, and parameter instability. In the short term, all variables maintain their relevance, suggesting equilibrium.This study contributes to the understanding of green finance's interaction with GDP growth, NRR, and carbon emissions in China. It indicates that green finance can offset the adverse environmental effects of NRR. Highlighting the importance of green finance initiatives and policies, this research underscores their role in sustainable development and environmental mitigation, suggesting their criticality in achieving carbon neutrality.

Keywords: Carbon emissions; Green finance; Natural resources; ARDL approach; Carbon neutrality (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723011352
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723011352

DOI: 10.1016/j.resourpol.2023.104424

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().