The nexus of industrialization, GDP per capita and CO2 emission in China

Abstract This study explores the nexus of industrialization, economic growth, and carbon dioxides (CO2) emission for Chinese economy along with trade openness and population density. It also evaluates the environmental Kuznets curve (EKC). The computed estimates reveal that population density, industry, and trade increase the Chinese CO2 emission, while per capita GDP deteriorates CO2 emissions in the long-run. It also found a bidirectional causal link between CO2 emission and industrialization and a uni-directional relationship between population density and trade openness structure, respectively. Variance decomposition impulse analysis spotlights the time-lag of CO2 emission, industrialization, and per capita GDP, respectively which are major predictors of Chinese CO2 emission. The present study likely to open debate about the literature since the course concludes with a discussion on the short-run and long-run implications for China while providing policy suggestions for the policymakers.