Impact of Carbon Sequestration by Terrestrial Vegetation on Economic Growth: Evidence from Chinese County Satellite Data

Zuoming Zhang, Xiaoying Wan, Kaixi Sheng, Hanyue Sun, Lei Jia () and Jiachao Peng ()
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Zuoming Zhang: School of Accountancy, Wuhan Textile University, Wuhan 430079, China
Xiaoying Wan: School of Accountancy, Wuhan Textile University, Wuhan 430079, China
Kaixi Sheng: School of Accountancy, Wuhan Textile University, Wuhan 430079, China
Hanyue Sun: School of Accountancy, Wuhan Textile University, Wuhan 430079, China
Lei Jia: Institute of Agricultural Science and Technology Information, Shanghai Academy of Agricultural Sciences, Shanghai 201403, China
Jiachao Peng: School of Law & Business, Wuhan Institute of Technology, Wuhan 430205, China

Sustainability, 2023, vol. 15, issue 2, 1-19

Abstract: Land vegetation plays an important role in reducing greenhouse gas emissions and stabilizing atmospheric CO 2 concentration. However, the impact of carbon sequestration of terrestrial vegetation on economic growth has not yet been reported in the literature, especially in the context of China’s current high-quality economic development strategy, and clarifying carbon sequestration on high-quality economic development has an important research-support role in achieving the goal of “carbon peak” and “carbon neutral”. Therefore, based on the panel data from 2735 countries and cities in China from 2000 to 2017, this statistical analysis adopts a dual-fixed-effect model to identify the heterogeneous impacts of land-based vegetation carbon sequestration on high-quality urban economic development. The results show that carbon sequestration by terrestrial vegetation has a significant positive impact on economic growth in northeast, central, south, and southwest China but not in north, east, or northwest China, and after a series of stability tests, the effect still holds. Terrestrial vegetation carbon sequestration affects economic growth mainly through upgrades of industrial structures, resource allocation effect, and vegetation coverage. This statistical model further clarifies the empirical evidence provided by vegetation carbon sequestration for high-quality economic development and the economic effects on afforestation and ecological conservation.

Keywords: carbon neutrality; carbon sequestration of terrestrial vegetation; economic growth; heterogeneity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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