Green Investment, Technological Progress, and Green Industrial Development: Implications for Sustainable Development

Abstract

Environmental reformation of old-fashioned sectors and the establishment of new pro-ecological businesses via green investment are the main driving forces behind the revolution in the Chinese industrial sector. Green investment aids in the growth of environmentally friendly industries. Hence, the primary objective of the analysis is to investigate the impact of green investment and technological progress on green industrial development. The results of the unit root tests encourage us to apply the ARDL model. The short and long-run estimates attached to R&D expenditures are positively significant, confirming that increasing R&D expenditures help improve the industrial structure. Similarly, the short and long-run estimates attached to green finance investment are positively significant, signifying that green investment benefits the industrial structure. Empirical findings show that technology significantly aggravates industrial structure development in only the long run. Thus, for green industrial development in China, there is a need to increase green investment and technological development up to top-level design.