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Does the Level of Absorptive Capacity Matter for Carbon Intensity? Evidence from the USA and China

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School of Economics, Huazhong University of Science and Technology, 1037 Luoyu Road, Hongshan District, Wuhan, 430074, China
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Jigjiga University, College of Social Sciences and Humanities, Somali Region, Ethiopia
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Department of Commerce, Faculty of Management Sciences, University of Kotli, Azad Jammu and Kashmir 11100, Pakistan
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Faculty of Economics and Social Sciences, Szent István University, 2100 Gödölő, Hungary
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Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary
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Author to whom correspondence should be addressed.
Energies 2020, 13(2), 407; https://doi.org/10.3390/en13020407
Received: 19 November 2019 / Revised: 8 January 2020 / Accepted: 9 January 2020 / Published: 14 January 2020
(This article belongs to the Section Energy Economics and Policy)
Interest in the rapid growth of CO2 emissions, together with the economic performance of various countries continues to attract researchers and practitioners’ interest. Alongside, concerns regarding global warming and its effects on human and animal health, and thus sustainable development, escalate. The present study employs the nonlinear autoregressive distributed lag to identify short- and long-run dynamics and the asymmetric nexus between absorptive capacity, and CO2 emissions intensity from 1970 to 2018 in the case of the USA and China. In the short-run, an increase in technology transfer based on human resources increases CO2 emissions in China. Contrarily, the decrease in technology transfer based on infrastructure has an emissions-decreasing effect in China. In the long-run, the effects of an increase in absorptive capacity based on innovation and infrastructure developments provide positive and significant impetus to mitigate the carbon intensity in China and the USA. The results are robust using GHG intensity. Thus, policymakers and researchers have to consider the pivotal role of absorptive capacity in facilitating sustainable development.
Keywords: absorptive capacity; carbon intensity; sustainable economic growth; innovation; infrastructure developments absorptive capacity; carbon intensity; sustainable economic growth; innovation; infrastructure developments
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MDPI and ACS Style

Mariyakhan, K.; Mohamued, E.A.; Asif Khan, M.; Popp, J.; Oláh, J. Does the Level of Absorptive Capacity Matter for Carbon Intensity? Evidence from the USA and China. Energies 2020, 13, 407.

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