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Assessing e-commerce impacts on China's CO2 emissions: testing the CKC hypothesis.

Caiyi Liang1, Zhenyu Liu2, Zhifei Geng3

  • 1School of Management, Xiamen University, 422 Siming South Road, Xiamen, 361005, Fujian, China. caiyi@stu.xmu.edu.cn.

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|June 3, 2021
PubMed
Summary

This study explores the relationship between e-commerce and carbon dioxide (CO2) emissions in China. It finds an inverted "U" shape for China overall, but an "N" shape for Central China, offering insights for environmental policy.

Keywords:
CO2 emissionsCarbon Kuznets curvesCross-sectional dependenceE-commerceEnvironmental sustainabilityForeign direct investment

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Area of Science:

  • Environmental Economics
  • Econometrics
  • Sustainable Development

Background:

  • The impact of e-commerce on carbon emissions is debated, with mixed conclusions in existing literature.
  • Previous research has not extensively focused on the e-commerce sector's specific role in carbon emission dynamics.
  • A regional perspective is crucial for understanding the Carbon Kuznets Curve (CKC) in relation to e-commerce.

Purpose of the Study:

  • To investigate the relationship between e-commerce and carbon dioxide (CO2) emissions using the Carbon Kuznets Curve (CKC) hypothesis.
  • To analyze this relationship from a macro-economic perspective across different Chinese regions.
  • To provide empirical evidence for informing e-commerce regulations aimed at reducing carbon emissions.

Main Methods:

  • Utilized panel data from Chinese cities (2001-2017) to explore the CKC hypothesis.
  • Employed unit root tests (LLC, IPS, Fisher-ADF, Fisher-PP, CADF, CIPS) and cointegration tests (Pedroni, Kao, Westerlund).
  • Applied Dynamic Ordinary Least Squares (DOLS) to estimate the econometric relationship, distinguishing primary and secondary energy-related emissions.

Main Results:

  • The CKC hypothesis, showing an inverted "U" shape, is supported for China, Eastern China, and Western China.
  • A cubic-form CKC, exhibiting an "N" shape, is supported for Central China.
  • Increased trade openness was found to decrease carbon emissions, while foreign direct investment (FDI) and market size contributed to higher emissions.

Conclusions:

  • E-commerce development exhibits varying impacts on carbon emissions across different Chinese regions, necessitating tailored regulatory approaches.
  • The study supports the CKC hypothesis in different forms (inverted "U" and "N" shapes) depending on the region.
  • Findings offer critical insights for developing targeted regional and national e-commerce policies to mitigate CO2 emissions effectively.