Does eco-innovation and green investment limit the CO2 emissions in China?

Tolassa Temesgen Hordofa, Hieu Minh Vu, Apichit Maneengam, Eko Priyo Purnomo, Phan The Cong and Song Liying

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 1, 634-649

Abstract: The continuous upsurge in worldwide economic development and human activities has intensified CO2 emissions that highlighted the significant role of eco-innovation and green investment in curbing CO2 emissions. The study aims to explore the impact of eco-innovation and green investment on CO2 emissions by using the China dataset for time period 1990–2019. The study adopts the ARDL approach. The study used two proxies to determine the impact of eco-innovation, namely environment-related technologies and patents. The empirical estimates of the ARDL approach confirm the negative impact of eco-innovation and green investment on CO2 emissions confirming that these determinants result in limiting CO2 emissions in China. Based on these findings, the study suggests strengthening environmentally friendly policies and the advancement of green investment to mitigate CO2 emissions.

Date: 2023
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DOI: 10.1080/1331677X.2022.2116067

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