Sustainable growth and green environment? Evidence from nonparametric methods provincial data of China

Abstract

A sustainable financial and economic system is the need of the hour, especially in the context of a deteriorating environment. Environment quality is very important for healthy labour life, contributing to economic growth more effectively. China is one of the largest economies in the world, which is the residency of 18.47% of total humans on planet earth. Keeping environment is a major policy concern; this study investigates the relationship between environmental quality and economic growth in the presence of human capita and renewable energy use. The study uses the data for the time period of 1995–2017. While conducting nonparametric tests, the study applied QMMR regression approach to hand the issues of cross-sectional heterogeneities and endogeneity simultaneously. The study found that GDP is positively associated with carbon emissions throughout all the quantiles. Foreign trade is showing mixed results, most probably due to changes in trade patterns, and a hidden heterogeneity across provinces in China.