Paper Title
Determinants Of Carbon Emission In An Open Economy: Empirical Evidence From China

Abstract
This paper aims to examine the long-run equilibrium relationship and causal relationship between the variables of economic growth, carbon emissions, energy consumption and foreign trade in case of China for the period 1971-2013.The ARDL bound testing approach is applied to explore the long run cointegration relationship among the variables. Meanwhile,VECM Granger causality test is conducted todetect the causality between each variable in this study. The finding shows that long run cointegration relationship exists in CO2 emissions, energy consumption, economic growth and trade openness, but it is not valid in the short-run. This result confirms that EKC hypothesis is a long run phenomenon in case of China. In addition, the Granger causal approach shows that bidirectional causal relationship can be found between CO2 emissions and energy consumption in the long-run. In the short-run uni-directional causality running from trade openness to CO2 emissions, this means government can reduce CO2 emissions in a variety of different ways without affecting economic growth. Keywords - ARDL method, carbon emissions, Environmental Kuznets curve, foreign trade