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Revisiting the relationship between carbon emission, renewable energy consumption, forestry, and agricultural financial development for China
(Springer Heidelberg, 2021) Koondhar, Mansoor Ahmed; Shahbaz, Muhammad; Ozturk, Ilhan; Randhawa, Abid Ali; Kong, Rong
Globally, the use of modern technologies is increasing along with carbon emission due to the consumption of fossil fuels to operate modern technologies. Therefore, in this study, we aimed to investigate the relationship between carbon emission, renewable energy consumption, forestry, and agricultural value added per capita from 1998 to 2018. The auto-regressive distribution lag model was estimated for long-run and short-run correlation analysis. The results of this study revealed that carbon emission decreases owed increases in forest areas in the long and well as short-run nexus. Furthermore, in the short run, carbon emission decreases due to an increase in renewable energy consumption. In addition, the carbon emission was run in an upward direction parallel to agricultural financial development. Furthermore, this study confirmed that the unidirectional causality between variables by estimating the non-Granger causality test. Therefore, this study suggests that to combat carbon emissions with carbon emission, it is necessary to switch from nonrenewable energy to renewable energies and organic fertilizer consumption along with afforestation to make the climate free from carbon.