Abstract China has made notable advancements in innovation, particularly in technology and industrial development; however, these improvements have not significantly translated into progress toward its decarbonization goals, as outlined in Sustainable Development Goals (SDGs) 9, 11, and 13. This disconnect can be attributed to underlying challenges in financialization, the integration of information and communication technology (ICT), and the complexities surrounding the implementation of sustainable urbanization. Despite technological advancements and industrial innovations, the expected reduction in CO 2 emissions has been limited, hindering China’s progress in achieving its climate objectives. Addressing this issue may require a reorientation of policies to better align innovation with decarbonization efforts. This study introduces time‒varying frequency quantile regression to investigate this connection. The results show that ICT, economic growth, and urbanization increase emissions across quantiles, whereas financial market access and financial institutions have negative or mixed short-term impacts. In the medium-term (mid-frequency) band, ICT, economic growth, and urbanization continue to drive emissions, whereas financial market access remains negative and financial institutions neutral. Over the long run (low-frequency), economic growth and urbanization again reinforce CO₂, financial institutions switch to a clear positive effect, ICT rebounds to net positive, and financial market access displays mixed signs at the tails. The study formulates policies on the basis of these findings.
Tomiwa Sunday Adebayo (Wed,) studied this question.