Asymmetric macroeconomic determinants of CO2 emission in China and policy approaches

Since the nonlinear ARDL approach is introduced in advanced econometric, some old relationships are getting new empirical attention. Therefore, we examine the asymmetric macroeconomic determinants of carbon dioxide (CO2) emission in China, covering the time from 1971 to 2019 and using a nonlinear ARDL model. The study results show that GDP and industrialization have an asymmetric effect on CO2 emission in long-run in direction and magnitude, while agriculturalization has also an asymmetric effect on environmental pollution in magnitude, but not in the direction. In short, GDP and industrialization have also asymmetric response on CO2 emissions in the short term only in magnitude, but agriculturalization has an asymmetric response in magnitude and direction in short-run. Therefore, this empirical research is more applicable for policymakers in China.

Automated summary

This study explores the asymmetric macroeconomic determinants of carbon dioxide emission in China using a nonlinear ARDL model, finding that GDP, industrialization, and agriculturalization have different asymmetric impacts on CO2 emission in terms of magnitude and direction.