Sustainable Economic Development in China: Balancing Growth and Environmental Concerns

Abstract

Purpose: Over the last three decades, China’s economy has grown remarkably, ranking second in the world among all countries. China’s market-oriented policies, which give priority to economic development, are credited with the country’s economic boom. China’s remarkable economic growth in recent years has had a significant effect on the environmental balance of the nation. Presently, Chinese authorities must address environmental issues without impeding the nation’s progress. Even though China’s economy has expanded quickly since reforms and the opening up, the country’s environmental degradation issue has gotten more serious.Examine China’s current strategies for economic development and their effects on environmental sustainability and economic growth.The dynamic connects between the highlighted factors (renewable consumption of energy, economic expansion, oil rent, and resources of all kinds) and the increase in greenhouse gas emissions—a proxy for environmental sustainability—is examined in this article using China as an example.The findings of an empirical study using every year data from 2018 to 2022 and the auto-regressive distribution lag limits technique point to the existence of a long-run equilibrium link between each of the variables highlighted and greenhouse gas emissions. Specifically, since they have a negative impact on greenhouse gas emissions, the usage of renewable energy sources and petroleum rents contribute to ecological sustainability.In conclusion, China’s commitment to sustainability may benefit from some of the remedies this paper’s results suggest. This study demonstrates the useful use of New Structure Economy in a crucial industrial area in China, adding to the body of knowledge on sustainability in the environment and economic development.