Balancing law, sustainability, and the economy in China's responsible mineral resource extraction path

Abstract

This study assesses the impact of the rule of law, transparency, green economic growth, foreign direct investment (FDI), innovation, and green technology imports on carbon dioxide (CO2) emissions from mineral extraction in China (1989–2020). Utilizing data from the China Statistical Yearbook and international databases, it identifies the positive effects of the rule of law and transparency on sustainability in China's mineral extraction. A 1 % increase in these factors corresponds to significant CO2 reductions, indicating the effectiveness of regulations. The green growth index is also associated with positive CO2 reductions. Surprisingly, foreign direct investment (FDI), innovation (patent applications), and a lack of green patents reveal unexpected environmental impacts. Policy recommendations encompass reinforcing legal frameworks, fostering green economic growth, aligning FDI with eco-friendly practices, incentivizing green innovations, and promoting green technology imports to enhance sustainability in China's mineral extraction sector.