Globalization, Financial Risk, and Environmental Degradation in China: The Role of Human Capital and Renewable Energy Use

Ruwayda Nsair () and Ahmad Bassam Alzubi
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Ruwayda Nsair: Department of Business Administration, Institute of Graduate Research and Studies, University of Mediterranean Karpasia, 33010 Mersin, Turkey
Ahmad Bassam Alzubi: Department of Business Administration, Institute of Graduate Research and Studies, University of Mediterranean Karpasia, 33010 Mersin, Turkey

Sustainability, 2025, vol. 17, issue 15, 1-25

Abstract: Amid rising climate concerns, understanding how renewable energy adoption, human capital, fossil fuel efficiency, and globalization collectively shape CO 2 emissions is crucial for unlocking pathways to a cleaner, resilient, and globally connected low-carbon future. Using China as a case study, this research investigates the drivers of CO 2 emissions, focusing on fossil fuel efficiency, renewable energy adoption, and globalization, utilizing quarterly data from 1984Q1 to 2023Q4. To ensure robust and nuanced insights, the study integrates advanced machine learning techniques alongside Quantile-on-Quantile Kernel Regularized Least Squares (QQ-KRLS) and a Modified Quantile Regression as robustness checks, capturing complex distributional dynamics often overlooked in conventional analyses. To the authors’ knowledge, this is the first empirical study examining such relationships for the case of China. The results reveal that globalization, fossil fuel efficiency, renewable energy, human capital, and financial risk all contribute to increasing CO 2 emissions. The study proposes precise policies based on the findings obtained.

Keywords: renewable energy consumption; fossil fuel efficiency; financial risk; globalization; CO 2 emissions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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