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

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.