Climate Change Mitigation via Green Investment and Energy Consumption: The Mediating Role of Energy Efficiency

Abstract

Climate change is one of the biggest challenges that the world is currently facing. Therefore, the present study aims to test the impact of carbon emission on climate change mitigation in China at provisional level. Further, this study aims to explore the role of green investment in reducing carbon emissions and enhancing climate change strategies. Data for the present study was gathered from the Organisation for Economic Co-operation and Development (OECD), the World Bank, and the European Union (EU) databases. While the data analysis was conducted through composite indicator estimates, the findings of the present study revealed that there exists a noteworthy association between specific greenhouse gas emission reduction responsibilities and climate change mitigation, with a correlation of 19%. Additionally, a significant 21.5% association is found between activities like carbon trading, production, and consumption of carbon allowances and the energy consumption necessary for effective climate change mitigation measures which are 20.6%. The importance of green investment becomes evident with its impact on energy consumption is 26.5% and its substantial contribution to climate change mitigation measures is 31.3%. These figures surpass the effectiveness of conventional climate management techniques. The study's insights have implications for policymakers and stakeholders, offering a deeper understanding of climate change mitigation measures and emphasising the role of green investment in reducing carbon emissions and energy consumption.