Asymmetric macroeconomic determinants of CO₂ emission in China and policy approaches

Since the nonlinear ARDL approach is introduced in advanced econometric, some old relationships are getting new empirical attention. Therefore, we examine the asymmetric macroeconomic determinants of carbon dioxide (CO₂) emission in China, covering the time from 1971 to 2019 and using a nonlinear ARDL model. The study results show that GDP and industrialization have an asymmetric effect on CO₂ emission in long-run in direction and magnitude, while agriculturalization has also an asymmetric effect on environmental pollution in magnitude, but not in the direction. In short, GDP and industrialization have also asymmetric response on CO₂ emissions in the short term only in magnitude, but agriculturalization has an asymmetric response in magnitude and direction in short-run. Therefore, this empirical research is more applicable for policymakers in China.