Impact of carbon emission price and natural resources development on the green economic recovery: Fresh insights from China

Abstract

Tackling climate change has risen to the top of the global economic agenda.Therefore, we analyze the role of natural resource development, carbon emission price, and financial development (FD) on green economic recovery in China. From 2000 to 2020, we compile study data on 286 towns at the prefectural levels. The econometric methods, such as DID analyses," are used to estimate the proposed linkages empirically. Our study's findings shown that carbon emission price negatively impacts Chinese green economic growth. In contrast, natural resources development and financial development increase green economic growth over the long and short terms. These findings support the idea that natural resources have a linear influence. While natural resource development and financial development positively impact carbon emission price. Furthermore, the long-term validity of the data supports green economic growth. Based on the results, it is suggested that the government and policymakers develop a policy that offers a platform for using the natural resources development and financial development in a better and more effective way, which may aid the nation in improving green economic growth.