IMPACT OF CARBON TAXES, ECONOMIC GROWTH, GLOBALIZATION, FOREST RENT, INFLATION AND URBANIZATION ON SUSTAINABLE DEVELOPMENT IN CHINA
Keywords:Carbon Taxes, Economic Growth, Globalization, Forest Rent, Inflation, Urbanization, Sustainable Development
The study’s objective was to investigate the impact of carbon taxes, economic growth, globalization, forest rent, inflation, and urbanization on sustainable development in China. The study has used secondary data from World Development Indicators and International Energy Association from 1992 to 2020. For data analysis, the study has employed panel unit root analysis, panel cointegration analysis, Hausman test, and random-effect OLS technique for data analysis. The results showed that forest rent was significantly related to sustainable development. Moreover, the natural logarithm of GDP has negative and urbanization has a positive impact on sustainable development. On the other hand, inflation has an insignificant but negative impact on sustainable development. Also, globalization and carbon taxes have a positive impact on sustainable development. The study concluded that higher carbon taxes have proved to be a boom for sustainable development solutions in China. The results indicated that with the slow and gradual increase in the level of carbon taxes, the emissions of carbon dioxide will be reduced to varying degrees. The study found that among the six variables, carbon taxes have the most significantly strong impact on sustainable development followed by globalization, forest rent, and urbanization whereas gross domestic product and inflation have a negatively significant impact on sustainable development.
Ahmed, Z., Ahmad, M., Rjoub, H., Kalugina, O. A., & Hussain, N. (2021). Economic growth, renewable energy consumption, and ecological footprint: Exploring the role of environmental regulations and democracy in sustainable development. Sustainable Development. Retrieved from https://doi.org/10.1002/sd.2251 DOI: https://doi.org/10.1002/sd.2251
Apergis, N., & Payne, J. E. (2014a). The causal dynamics between renewable energy, real GDP, emissions and oil prices: evidence from OECD countries. Applied Economics, 46(36), 4519-4525. Retrieved from https://doi.org/10.1080/00036846.2014.964834 DOI: https://doi.org/10.1080/00036846.2014.964834
Apergis, N., & Payne, J. E. (2014b). Renewable energy, output, CO2 emissions, and fossil fuel prices in Central America: Evidence from a nonlinear panel smooth transition vector error correction model. Energy Economics, 42(1), 226-232. Retrieved from https://doi.org/10.1016/j.eneco.2014.01.003 DOI: https://doi.org/10.1016/j.eneco.2014.01.003
Apergis, N., & Payne, J. E. (2015). Renewable energy, output, carbon dioxide emissions, and oil prices: evidence from South America. Energy Sources, Part B: Economics, Planning, and Policy, 10(3), 281-287. Retrieved from https://doi.org/10.1080/15567249.2013.853713 DOI: https://doi.org/10.1080/15567249.2013.853713
Beteryeb, C. N. (2017). The effect of population growth and energy intensity on electricity consumption in Ghana. (Master of Science), Kwame Nkrumah University of Science and Technology, Ashanti, Ghana.
Creswell, J.W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches. UK: Sage publications.
Destek, M.A. (2019). Investigation on the role of economic, social, and political globalization on the environment: Evidence from ceecs. Environmental Science and Pollution Research, 1-14.
Gupta, D., Ghersi, F., Vishwanathan, S. S., & Garg, A. (2019). Achieving sustainable development in India along low carbon pathways: Macroeconomic assessment. World Development, 123, 104623. Retrieved from https://doi.org/10.1016/j.worlddev.2019.104623 DOI: https://doi.org/10.1016/j.worlddev.2019.104623
Hao, L. N., Umar, M., Khan, Z., & Ali, W. (2021). Green growth and low carbon emission in G7 countries: how critical the network of environmental taxes, renewable energy and human capital is? Science of The Total Environment, 752, 141853. Retrieved from https://doi.org/10.1016/j.scitotenv.2020.141853 DOI: https://doi.org/10.1016/j.scitotenv.2020.141853
Hassan, S.T., Xia, E., Huang, J., Khan, N.H., & Iqbal, K. (2019). Natural resources, globalization, and economic growth: Evidence from Pakistan. Environmental Science and Pollution Research, 1-8. Retrieved from https://doi.org/10.1007/s11356-019-04890-z DOI: https://doi.org/10.1007/s11356-019-04890-z
Jia, L., Fan, B. G., Huo, R. P., Li, B., Yao, Y. X., Han, F., ... & Jin, Y. (2018). Study on quenching hydration reaction kinetics and desulfurization characteristics of magnesium slag. Journal of Cleaner Production, 190, 12-23. Retrieved from https://doi.org/10.1016/j.jclepro.2018.04.150 DOI: https://doi.org/10.1016/j.jclepro.2018.04.150
Kothari, C.R. (2004). Research methodology: Methods and techniques: New Age International.
Lin, B., & Moubarak, M. (2014). Renewable energy consumption-Economic growth nexus for China. Renewable and Sustainable Energy Reviews, 40(1), 111-117. Retrieved from https://doi.org/10.1016/j.rser.2014.07.128 DOI: https://doi.org/10.1016/j.rser.2014.07.128
Magazzino, C. (2016). The relationship between co2 emissions, energy consumption, and economic growth in Italy. International Journal of Sustainable Energy, 35(9), 844-857. Retrieved from https://doi.org/10.1080/14786451.2014.953160 DOI: https://doi.org/10.1080/14786451.2014.953160
Mark, S., Philip, L., & Adrian, T. (2009). Research methods for business students.
Niu, Y., Liu, S., Gong, Y., Liang, Y., Zhang, X., Yan, B., & Hui, S. E. (2019). Effects of FGR and changeable combustion parameters and coal/char properties on the formation of ultrafine PMs during pulverized coal char combustion under various O2/N2 and O2/CO2 atmospheres. Combustion Science and Technology, 191(10), 1898-1915. Retrieved from https://doi.org/10.1080/00102202.2018.1539714 DOI: https://doi.org/10.1080/00102202.2018.1539714
Ouyang, Y., & Li, P. (2018). On the nexus of financial development, economic growth, and energy consumption in china: New perspective from a gmm panel var approach. Energy Economics, 71(1), 238-252. Retrieved from https://doi.org/10.1016/j.eneco.2018.02.015 DOI: https://doi.org/10.1016/j.eneco.2018.02.015
Saint Akadiri, S., Alola, A. A., Olasehinde-Williams, G., & Etokakpan, M. U. (2020). The role of electricity consumption, globalization, and economic growth in carbon dioxide emissions and its implications for environmental sustainability targets. Science of The Total Environment, 708, 134653. Retrieved from https://doi.org/10.1016/j.scitotenv.2019.134653 DOI: https://doi.org/10.1016/j.scitotenv.2019.134653
Shah, I. H., Hiles, C., & Morley, B. (2018). How do oil prices, macroeconomic factors, and policies affect the market for renewable energy? Applied Energy, 215(1), 87-97. Retrieved from https://doi.org/10.1016/j.apenergy.2018.01.084 DOI: https://doi.org/10.1016/j.apenergy.2018.01.084
Solarin, S.A., Shahbaz, M., & Shahzad, S.J.H. (2016). Revisiting the electricity consumption-economic growth nexus in Angola: The role of exports, imports, and urbanization. International Journal of Energy Economics and Policy, 6(3), 1-26.
Wang, L., Vo, X. V., Shahbaz, M., & Ak, A. (2020). Globalization and carbon emissions: Is there any role of agriculture value-added, financial development, and natural resource rent in the aftermath of COP21?. Journal of Environmental Management, 268, 110712. Retrieved from https://doi.org/10.1016/j.jenvman.2020.110712 DOI: https://doi.org/10.1016/j.jenvman.2020.110712
Xie, J., Dai, H., Xie, Y., & Hong, L. (2018). Effect of a carbon tax on the industrial competitiveness of Chongqing, China. Energy for Sustainable Development, 47, 114-123. Retrieved from https://doi.org/10.1016/j.esd.2018.09.003 DOI: https://doi.org/10.1016/j.esd.2018.09.003
Yang, B., Li, Y., Wei, H., & Lu, H. (2016). Is the urbanization rate a feasible supplemental parameter in forecasting electricity consumption in China? Journal of Engineering, 2016(1), 1-7. Retrieved from https://doi.org/10.1155/2016/2465248 DOI: https://doi.org/10.1155/2016/2465248
Yuyin, Y., & Jinxi, L. (2018). The effect of governmental policies of carbon taxes and energy-saving subsidies on enterprise decisions in a two-echelon supply chain. Journal of Cleaner Production, 181, 675-691. Retrieved from https://doi.org/10.1016/j.jclepro.2018.01.188 DOI: https://doi.org/10.1016/j.jclepro.2018.01.188
Zeb, R., Salar, L., Awan, U., Zaman, K., & Shahbaz, M. (2014). Causal links between renewable energy, environmental degradation and economic growth in selected SAARC countries: progress towards a green economy. Renewable Energy, 71(1), 123-132. Retrieved from https://doi.org/10.1016/j.renene.2014.05.012 DOI: https://doi.org/10.1016/j.renene.2014.05.012
How to Cite
Copyright (c) 2021 Ana Imam
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.