Do clean fuel and trade-openness reduce environmental degradation in China: evidence from asymmetric model

Introduction This study investigates the relationship between economic growth, clean fuel utilization, trade, and environmental pollution. By focusing on the potential of clean fuels and trade in reducing pollution, this research aims to understand their role in promoting environmental sustainability in China from 1990 to 2020. Methods The study employs the Nonlinear Autoregressive Distributed Lags (NARDL) approach to analyze time series data. This method enables the decomposition of impacts from clean fuels and trade on pollution levels, facilitating an understanding of their distinct contributions to environmental outcomes. Results Findings indicate that economic growth is associated with an increase in pollution levels, while clean fuel usage exhibits a modest but significant reduction effect. Nonetheless, the relatively small coefficients highlight the need for a greater share of clean fuels in China’s energy mix. Additionally, trade shows a significant negative relationship with pollution emissions, with data reflecting a gradual decline in pollution over time. Discussion These results underscore the benefits of clean fuel adoption and trade promotion as effective measures for mitigating pollution. However, they also highlight the necessity for stronger regulatory policies, public awareness initiatives, and investments in sustainable technologies to ensure China’s long-term environmental sustainability.