Energy efficiency and green innovation and its asymmetric impact on CO2 emission in China: a new perspective

• DOI: 10.1007/s11356-022-19161-7
• Publication Date: 2022-02-21T19:07:30Z
• Authors: Yue Li; Chuan Zhang; Shixiang Li; Ahmed Usman
• Keywords: Distributed lag; Green growth; Carbon neutrality

Abstract Green innovation undoubtedly plays a significant role in creating employment opportunities, boosting green economic activity, and improving environmental sustainability. This study scrutinizes the effect of energy efficiency and green innovation on CO2 emissions in China over the 1992–2014 period using NARDL. Findings show that energy efficiency and green innovation contribute to reducing CO2 emissions in China. Energy efficiency and green innovation are also important asymmetric determinants of CO2 emissions. An increase in energy efficiency and green innovation lowers CO2 emissions, while a decrease in energy efficiency and green innovation increases CO2 emissions in China in the long run. Some policy measures are suggested to attain carbon neutrality.