Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17–19, 2023, Beijing, China

Research Article

Can Green Investment Reduce Carbon Emissions: Evidence from China

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  • @INPROCEEDINGS{10.4108/eai.17-11-2023.2342650,
        author={Zhe  Huang and Jingyi  Yu},
        title={Can Green Investment Reduce Carbon Emissions: Evidence from China},
        proceedings={Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17--19, 2023, Beijing, China},
        publisher={EAI},
        proceedings_a={ICEMME},
        year={2024},
        month={2},
        keywords={green investment;carbon emission intensity;dynamic panel threshold model},
        doi={10.4108/eai.17-11-2023.2342650}
    }
    
  • Zhe Huang
    Jingyi Yu
    Year: 2024
    Can Green Investment Reduce Carbon Emissions: Evidence from China
    ICEMME
    EAI
    DOI: 10.4108/eai.17-11-2023.2342650
Zhe Huang1,*, Jingyi Yu1
  • 1: Wuhan University of Technology
*Contact email: huangzheleo@qq.com

Abstract

The rapid industrialization and modernization of the Chinese economy has brought about tremendous carbon emissions, causing a climate change dilemma. At the same time, green investment offers great potential for global and Chinese carbon emission reduction, however, studies on green investment and carbon emissions are still scarce and empirical findings on the relationship between the two are lacking. Therefore, this paper investigates the impact of green investment on carbon emissions using a panel dataset of 30 Chinese provinces from 2003 to 2020. The empirical results show that green investment can reduce carbon emissions in China, and its emission reduction effect only gradually comes into play when the scale of green investment reaches a certain level. Through mechanism analysis, we find that green investment mainly affects carbon emissions through two channels: energy consumption and industrial structure. The results of the analysis of the dynamic panel threshold model concluded that the green investment can reduce carbon emissions more significantly with the increase of regional economic development and urbanization level. In addition, this paper also proposes some policy recommendations to provide some political references for policy makers in carbon emission reduction.