This study extends the standard STIRPAT
model by introducing an energy price factor and uses the extended STIRPAT model
to examine the effect of international crude oil prices on China’s carbon
emission, This paper applies Ridge regression to conduct empirical analysis.
The study finds that changes in international crude prices have a significantly
positive impact on China’s carbon emission. A 1 percent increase in
international crude oil price leads to a 0.12 percent increase in China’s
carbon emission This finding remains unchanged even after a set of control
variables are included in the analysis and survives all the rigidity tests.
Keywords: Crude price,
China, Carbon emission.