Optimized Variables for Environmental Dynamics: China’s Renewable Energy Policy

Abstract

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The purpose of this study is to determine the impacts of foreign direct investment (FDI), renewable energy (RE), energy consumption index (ECI), Globalization (GLO), and green technology innovation (GTI) on environmental pollution using a time series data from 1980 to 2019, using DARDL assessor to look at how markers with high levels of petroleum derivatives distorted the explanatory variable in China. The results showed that GTI contaminated environmental sustainability (ES). The polluted safe house notion claimed that FDI has a negative impact on the country’s inherent character. Finally, people are waking up to the importance of ES. Single-headed causalities from GTI to carbon emissions were detected in the middle of the other causes and fossil fuel byproducts need to change into green energy resources to reduce environmental pollution. Finally, the research proved that FDI is a major source of environmental pollution in China. According to the findings of the DARDL research, foreign direct investment and urbanization, green technological innovations, and China’s environmental pollution policy direction are all congruent with each other.

Keywords

• CO2 emissions
• renewable energy
• international trade
• dynamic model
• longrun estimators