Is there causality from investment for real estate to carbon emission in China: A cointegration empirical study

This paper for the first time examines the EKC(environmental Kuznets curve) relationship for CO2 emission for China over the period of 1990-2009, employing of time series data and a multivariate model of carbon emission among GDP, investment for real estate, fixed capital, urban household and money (M1). The empirical result reveals that there is Granger causality running from investment for real estate, GDP and fixed capital to carbon emission in the long run. The result of this study also suggests that there is unidirectional Granger causality from M1 to real estate industry. Therefore, China's government should adapt economic development model to reduce carbon emission for example keeping the sustainable and rapid development of real estate.