Study on the influence mechanism of green investment to promote green ecological development: Evidence from the provincial level in China

Abstract

The impact of green investment on green ecological development is still controversial. Based on the provincial panel data from 2009 to 2020, this study uses a spatial econometric model to test the impact of green investment on green ecological development and regional differences. Results found that the green investment significantly improved the local green ecological level and had less impact on the green ecological level of surrounding areas. Green innovation significantly affects green investment to promote green ecology in local and surrounding areas, inhibiting the development of green ecology. Environmental regulation improved the effect of local green investment to promote green innovation and has an inhibitory effect on surrounding areas. Moreover, environmental regulation inhibits the effect of local green investment to promote a green ecology. Finally, the promotion effect of green investment on local green ecology is only significant in the eastern region. The effect in the western region is not significant. This study has important practical significance for promoting China's green ecological development.