What role economic growth and sustainability-oriented innovation play on the level of carbon emission: case of China

Abstract

Globally, carbon dioxide (CO2) emission is a significant element ofenvironmental pollution because of corrupt economic activitiesthat requires regulators’focus and researchers’emphasis. Hence,the current research evaluates economic growth on CO2 emis-sions in Chinese economy. The article has taken six factors of eco-nomic growth on board along with sustainable innovation topredict CO2 emissions. Secondary data, in this regard, has beenused which has been borrowed from World Bank from 1986 to2020. Augmented Dickey-Fuller test is employed to scrutnize unitroot, while QARDL model has been run to identify the associationbetween the constructs. Findings revealed that factors such asgross domestic product, national income, human capital, employ-ment ratio, inflation and exports signifies CO2 emissions, henceare corrupt the environment. While sustainability oriented innov-ation reduces the emissions. This study monitors the policymakerswhile formulating regulators related to reducing the level of CO2emission using economic growth factors and sustainability-ori-ented eco-innovation.