This study investigates sustainable finance along with sustainable economic factors on both carbon emissions and ecological footprints in China. A novel Dynamic Autoregressive Distributed Lag technique is applied; results revealed sustainable finance exerts positive/negative influence on carbon emissions in the long and short run, respectively. Results are robust with ecological footprints that sustainable finance placed a lucrative cause to preserve the environment. Sustainable economic factors show a positive impact on carbon emissions in the long run, whilst economic growth, energy consumption and exports improve environmental quality. Conversely, in the short run, urbanisation supports the environment whilst economic development, energy use and exports exert a positive impact. In addition, this study suggests useful policy implications for the stakeholders.
Keywords: CO2 emissions; D-ARDL; Ecological footprint; Energy; Finance; Market capitalisation; Sustainable environment.
© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.