Combining the role of the banking sector and natural resource utilization on green economic development: Evidence from China

Abstract

This study examined how China's green economic development has affected the country's use of natural resources, the price of carbon emissions, and the banking industry. It looked at how China's green economic development changed between 1993 and 2017 due to globalization, economic expansion, the banking industry, resource exploitation, and innovation. Cross-sectionally dependent panel datasets were analyzed using econometric techniques in the study. The findings show that the cost of carbon emissions negatively impacts China's green economy. On the other hand, long- and short-term green economic growth is boosted by the expansion of natural resources and financial markets. The price of carbon emissions has increased due to advancements in both the economy and natural resource management. The study suggests that to enhance the nation's green economic growth, and policymakers should develop measures that effectively utilize the growth of the country's natural resources and financial development.