Bridging the EPC and IPAT in the presence of natural resources in China: Considering asymmetries in environmental-related technologies and unemployment

Abstract

In modern times, one of the most significant difficulties many nations confront is fostering economic development and employment while maintaining environmental sustainability. To accomplish this, this research seeks to empirically analyze the impact of unemployment (UE), innovation in environmental technology (IiT), GDP per capita, and energy consumption per capita on carbon emissions (CO2e) per capita among China's top emitters. A new Environmental PhilipshCurve (EPC) framework is used to adjust for other relevant factors, such as natural resource rent (NR), using data ranging from 1990 to 2020. This is the first research investigating the asymmetric effect (increase/decrease) in UE and IiT. Long-run empirical findings of non-linear N-ARDL show that energy and NR are substantial positive contributors to CO2e. Furthermore, negative shocks (reduction) in UE increase CO2e, while positive shocks (increase) in IiT significantly reduce CO2e. The results were further tested using fully modified and dynamic ordinary least squares techniques to ensure robustness. These empirical findings imply that lowering UE levels via adequate climate change mitigation technology adaption would enhance environmental quality. To combat environmental degradation and unemployment (UE), authorities must emphasize programs connected to innovation in environmental technology and renewable energy development.