The Impact of Oil Price Shocks, Energy Consumption, Trade Liberalization on CO2 Emissions in China
Abstract
The quality of the environment has become a subject of great importance nowadays due to the complex impact of environmental degradation on economies and citizens everywhere on the globe. China, one of the world's biggest polluters, attracts the attention of researchers by the way its economic model has contributed to the environmental damage (Abban et al., 2022; Ayad et al., 2023; Balsalobre-Lorente et al., 2023; Cigu et al., 2020; Dilanchiev et al., 2023; F M Nuta , A C Nuta (2012) Jiang et al., 2023; I. Khan et al., 2023; S. U. Khan et al., 2023; Nazam et al., 2022; Nureen et al., 2023; Nuta et al., 2021; Nuta, F. M. (2011a); Nuta, F. M. (2011b) Petrea et al., 2021; Zhang et al., 2023; Nuta et al., 2015; Nuta & Nuta, 2017); (Nuta) et al., 2023)(Nuta & Nuta, 2020); Nuta, A.C., & Nuta F.M. (2012); Nuta, A. C. (2008), Nuta AC, Cristina Nuta AC, Chirila V, Roman A, Pusca AC (2015); Nuta, A. C. & Nuta, F. (2014a); Nuta, A. (2014b). Nuta, F. M. (2011a); Nuta, F. M. 2011b.; F M Nuta , A C Nuta (2012) Hatmanu,M., Lobont, O.R. Albu, C., Moldovan, N.C., (2014); Lobont, O.R., Moldovan, N.C., Bociu, A.; Chis, C., (2018); Moldovan, N.C., Hatmanu, M. Lobont, O.R., (2014), Vatavu,S. Dogaru, M, Moldovan C.N., Lobont O.R.,(2022)
This study proposes an analysis of the impact of economic growth, trade liberalization, energy consumption, and oil price shocks in China from 2002 to 2021. Our methodological approach proposes a dynamic simulated ARDL model to assess the negative and positive changes occurring in the variables along with their short-run and long-run relationships.
The ARDL bounds test results confirm a long-term relationship among trade liberalization, oil price shocks, economic growth, energy consumption, and CO2 emissions. Furthermore, the results of a novel dynamic simulated ARDL disclosed that trade liberalization is positively connected to CO2 emissions in China in the long run. Moreover, there is a negative relationship between oil price shocks and CO2 emissions in the case of China. The analysis further proposes some concrete policy implications of the results.
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