RESUMEN
The equilibrium between environmental quality and economic growth is one of the contemporary objectives of fiscal and monetary policies in the case of China. In this study, we investigate the extent of the existence of the N-shaped environmental Kuznets curve (EKC) hypothesis and measure the collision of fiscal and monetary policy on carbon emissions within the economic growth perspectives that China is witnessing. This study examines the dynamic nexus between monetary supply, government expenditure, and carbon emissions in China over the spanning from 1980 to 2019. The findings demonstrate that the money supply reduces carbon emissions in the short- and long-run. Precisely, a 1-unit augmentation in monetary policy tool (money supply) will significantly reduce the pressure on the environment by 0.29332 unit in the long-run and 0.79311 unit in the short-run. In contrast, the fiscal policy instrument (government expenditure) contributes to the increase in carbon emissions. Specifically, a 1-unit increase in government expenditure will increase the carbon emission by 0.17835 and 0.48247 units in the long-run and short-run, respectively. Additionally, the result also confirmed the N-shaped EKC hypothesis. Particularly, at the initial stage of economic growth, there are 1.58659 and 4.29197 unit increas in carbon emission in the long-run and short-run, respectively. However, after taking the square of economic growth, this reduces the environmental pollution by 0.3018 and 0.81665 units in the long-run and short-run, respectively. Finally, the cubic form of economic growth shows the 0.01755 and 0.04747 units increase in the pollution level in the long-run and short-run, respectively. Moreover, the study also found the presence of a causality link between government expenditure, economic growth, and carbon emissions. These findings will aid policymakers in implementing fiscal and monetary policies that promote long-term development while lowering carbon emissions.
Asunto(s)
Política Fiscal , Dióxido de Carbono/análisis , Contaminación Ambiental/análisis , China , Desarrollo Económico , CarbonoRESUMEN
All around the world, but particularly in developing nations, carbon dioxide emissions are on the rise, and climate change and global warming are brought on by an increase in CO2 emissions. This article provides an overview of the technological effect on energy consumption in the residential, transport, and industrial sector and its ultimate effect on the environment. Using the STIRPAT-Kaya-EKC model for the years 1990 to 2020, this study looked at the threshold impact of technological advancements on the link between disaggregated energy use and CO2 emissions for a panel of 10 Asian countries using the panel threshold regression. Findings demonstrate that the EKC phenomenon is present in the chosen Asian region. Findings also suggest that technology has a threshold influence on the relationship between energy use and carbon emissions; however, this effect varies across sectors.