Do industrial solid waste recycling and technological innovation promote low-carbon development in China? New insights from NARDL approach

Recycling waste is crucial for consolidating resources and promoting sustainable development, serving a pivotal role in achieving the objectives of carbon peak and carbon neutrality. Nonetheless, most existing research has primarily focused on municipal solid waste (MSW) recycling, often neglecting the significant volume of industrial solid waste (ISW). This study aims to explore the asymmetric effects of industrial solid waste recycling and technological innovation on the low-carbon development. To this end, this study selects GDP and carbon intensity as indicators representing economic growth and environmental quality. A variable that can enhance GDP growth while reducing carbon intensity signifies its contribution to low-carbon development. By collecting data from China over the period of 1985–2020, non-linear autoregressive distributed lag (NARDL) models of GDP and carbon intensity are established to discover whether the low-carbon development can be achieved by enacting ISW recycling and technological innovation. The results show the asymmetric shocks of ISW recycling and technological innovation on economic growth and environmental quality. In the long run, both ISW recycling and technological innovation promote low-carbon development. In the short run, technological innovation proved to be detrimental to economic growth and environmental quality. This paper also highlights the inhibitory effect of the labor force on economic growth. The “pollution haven hypothesis” is supported by the finding that foreign direct investment reduces carbon intensity. Additionally, the Granger test revealed the direction of the variables' causality. Based on empirical findings, policymakers can protect the environment and create economic value simultaneously through waste recycling and technological innovation, thereby realizing low-carbon development. [Display omitted] •The focus is on the contribution of industrial solid waste recycling to low-carbon development.•Investigate the asymmetric impacts of industrial solid waste recycling and technological innovation.•Industrial solid waste recycling and technological innovation contribute to low-carbon development.•Labor force hinders economic growth.