The Effects of Chinese Green Economy Policies on Industrial Upgrading

Abstract

This article focuses on the path to green and low-carbon development in China under the era of carbon neutrality. Starting with exploring the significance to reach carbon neutrality, the actions taken by different countries are demonstrated and the global milestones such as The Paris Agreement are illustrated. Based on Solow-Swan Growth Model, the method of calculating environment capital as a new parameter is discussed. In this case, China plays an important role in global carbon neutrality. To develop sustainably, it is crucial to figure out how China keep its way on Green Economy. Energy Industry, Manufacturing Industry, and Financial Service Sector will be analyzed separately to find out what is best strategy for those industries to evolution under the Green oriented policy and what are their responsibility respectively. We found the stronger governance, the better nature capital would be utilized. The chance and challenge are concluded in the end with the potential pathway to realize the carbon neutrality in China.