Carbon dioxide emissions, urbanization level, and industrial structure: empirical evidence from North China

Abstract

This paper aims to examine the nexus among carbon dioxide (CO₂) emissions, urbanization level and industrial structure in North China over the period 2004-2019, according to an expanded Cobb-Douglas production function. The panel econometric techniques are employed to complete the empirical analysis, including cross-sectional correlation test, panel unit root test, panel co-integration test, and panel Granger causality test. The empirical results support the long-term equilibrium relationship among CO₂ emissions, urbanization level and industrial structure in North China, and the urbanization level contributes most to CO₂ emissions, followed by fossil energy consumption. Furthermore, the bidirectional causality between CO₂ emissions and urbanization level and unidirectional causality from industrial structure to CO₂ emissions are found in North China, indicating that urbanization level and industrial structure have significant impacts on CO₂ emissions. Finally, according to the empirical findings, several policy suggestions are proposed for the purpose of reducing CO₂ emissions in North China.

Keywords: Carbon dioxide emissions; Industrial structure; North China; Panel econometric techniques; Urbanization level.