Assessing the synergy reduction effects of the renewable energy policies on environmental pollution and carbon emissions in China

Xiufeng Zhang, Tong Yan, Shengxin Zhang, Zhenhua Zhang and Yanchao Feng

International Review of Financial Analysis, 2025, vol. 105, issue C

Abstract: As global efforts to combat environmental pollution and carbon emissions intensify, renewable energy has become a cornerstone of China's strategy to achieve sustainable development. This research examines the synergy reduction effects of China's renewable energy policies on environmental pollution and carbon emissions by utilizing data from 286 Chinese cities from 2003 to 2019. Employing a dynamic panel model and text-mining methodology, we find that: (1) The renewable energy policies significantly contribute to the synergy reduction of environmental pollution and carbon emissions, a conclusion robustly supported by multiple validation tests. (2) Mechanism analysis indicates that industrial structure upgrading serves as a key channel through which the renewable energy policies enhance its synergy reduction effects. (3) The influence of the renewable energy policies on environmental pollution and carbon emissions reduction exhibits regional and developmental heterogeneity, indicating that economic and structural characteristic shape policy effectiveness. These conclusions offer valuable insights into the mechanisms underlying the effect of the renewable energy policies in alleviating environmental pollution and carbon emissions, offering theoretical and policy implications for economies pursuing similar environmental objectives.

Keywords: Pollution control; Renewable energy policies; China; Text mining (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:105:y:2025:i:c:s1057521925005083

DOI: 10.1016/j.irfa.2025.104421

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