Green Finance, Environmental Regulations, and Green Technologies in China: Implications for Achieving Green Economic Recovery

Abstract

Abstract In the framework of foreign direct investments (FDI) and green finance (GF), environmental regulations (ERs) and green technologies have influenced China’s green economic recovery between 2000 and 2020. The idea is to conduct an empirical investigation of the main drivers behind China’s green economic revival. Second-generation panel cointegration techniques were adopted for the analysis. The relationship among ERs, green technological investment, GF, and green economic recovery is supported by the long-run cointegration results. In this context, some of the most important measures include ER, GF, and increased investment in environmentally friendly technologies. The estimated results demonstrate a positive contribution towards the green economic recovery from GF, the development of green technologies, and ERs. Evidence suggests that green economic recovery is inversely associated with FDI. The establishment of an environmentally sustainable economy can be rendered by policy implications to continue advocating for the green shift in financial institutions along with enforcing the appropriate regulations and laws.