Coal Rents, Forest Rents, and Alternative Energy: Assessing Their Combined Impact on Environmental Degradation in China

Environmental degradation is posing a permanent threat on the natural resources of our planet. It has been degraded by various factors that increased because of the impact could cause permanent harm to our world. Exploitation of natural resources such as coal, forests and other sources of energy is one of the most notable causes of this degradation. This paper adopts fossil fuel energy consumption as a moderating variable to determine the effects of coal rents, forest rents as well as alternative energy sources in China between 1971 and 2023. The outcome justifies that forest rents and alternative energy sources have negative associations with the CO2 emission, whereas coal rents, alternative energy sources and fossil fuel energy consumption have positive associations with the CO2 emission in China. Forest rents and coal rents are 5% significant, while alternative energy sources and fossil fuel energy consumption are 1% significant. Moreover, forest rents and alternative energy sources improve the environment, while coal rents and fossil fuel energy consumption deteriorate the environment in China. China should consider implementing a carbon tax, discouraging fossil fuel use, and reducing emissions. Finally, coal rent rise can trigger a radical increase in CO2 emission in China and active action should be undertaken to reduce the effects of the rise. It is possible to have China take a step to lower its emissions and move towards a more sustainable energy future by enacting government policies and financial incentives as well as introducing a carbon tax.