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September 18, 2025Frontiers in Environmental ScienceOpen Access

Toward sustainable development: the nexus between financial development, renewable energy, and carbon emissions in China

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Authors

YSY. SunFZFeng Qing ZhaoLGLei Gao

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Overview

Analysis reveals financial development increases carbon emissions while renewable energy consumption reduces them, suggesting multiple environmental connections.

Key Points

  • Economic growth is positively linked to carbon emissions, highlighting an environmental trade-off in China.
  • Financial development significantly increases emissions, indicating ecological risks from the financial sector's expansion.
  • Renewable energy consumption is shown to reduce CO2 emissions, emphasizing its importance for environmental quality.
  • Causality tests indicate complex interdependencies among economic growth, finance, and energy dynamics.
  • Investing in renewable energy and adopting green technologies can mitigate emissions while supporting economic growth.

Cite This Study

Sun et al. (2025) studied this question.

synapsesocial.com/papers/68d462d231b076d99fa625b9https://doi.org/10.3389/fenvs.2025.1594858
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