Metallic minerals production and environmental sustainability in China: Insights using ARDL bounds testing and wavelet coherence approaches

Qamar Abbas, Yao Hongxing, Muhammad Shahbaz, Muhammad Ramzan and Sumbal Fatima

Resources Policy, 2024, vol. 92, issue C

Abstract: China plays a prominent role in the production and consumption of metallic minerals. However, the mining and smelting processes associated with these minerals contribute significantly to the release of CO2 emissions. This study examines the long-run and causal effects of metallic minerals production, renewable energy consumption, GDP growth, financial development, and urbanization on CO2 emissions in China for the period 1977–2021, using the IPAT framework. This study utilizes various econometric methods, including the Bounds test of co-integration, autoregressive distribution lag (ARDL), wavelet coherence test (WTC), and gradual shift causality tests, to analyze the relationship between the variables. The bounds test demonstrates the cointegration among the variables. The long-run results indicate that metallic minerals production, GDP growth, and urbanization have a positive effect on CO2 emissions, while renewable energy consumption and financial development have a negative effect on CO2 emissions. Further, WTC indicates a significant relationship between CO2 emissions and independent variables. Moreover, causality tests indicate a one-way causal relationship between metallic minerals production, GDP growth, financial development, and urbanization with CO2 emissions. In addition, there is a two-way causal relationship between CO2 emissions and renewable energy consumption. To address the environmental consequences of CO2 emissions, China should implement measures such as metal recycling and the adoption of low-carbon and energy-efficient technologies in the mining and production of metals.

Keywords: Metallic minerals production; Carbon emissions; China's metallic minerals industry; Wavelet coherence analysis (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724004045

DOI: 10.1016/j.resourpol.2024.105037

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