A green revolution in the making: integrating environmental performance and green finance for China’s sustainable development

Abstract

Green finance initiatives are encouraged in the world to attain green economic milestones. Therefore, it is the centered area of research for the plethora of researchers across the globe. Instead of this significant transition to green finance, the study analyzed the Chinese data to explore the relationship between Green Finance, Green Technology innovation, and Environmental Performance from 2003 to 2022 in the Chinese context. We preferred the CS-ARDL and panel Quantile regression models for exploring our hypothesis and to examine the relationship of these variables. Our results validated that both green finance and green technology innovation have positive effects in both the long-term and short-term on the environmental performance in numerous Chinese cities. The statistical results showed that Green Finance and Green technology innovation reduce the amount of CO2 emission. Hence our results confirmed that both Green Finance and green technology innovations are significantly contributing to the environmental quality of China as the selected cities considered for the study investigation are considerably more driven towards green initiatives. This research also discussed the potential for implementing policy interventions in the future to leverage the adoption of green technology and make a significant impact on the world’s environmental quality as China is the biggest emitter of CO2 emissions. The study places and puts forward valuable insights to the regulatory bodies that would likely help them in achieving sustainable milestones and would contribute to their long-term strategic landscape for the attainment of environmental objectives and heights.