Towards carbon neutrality: The role of innovation and resources efficiency in China's economic transformation

Abstract

This study investigates the necessary paradigm shift in redefining productivity. It achieves this by examining the complex interplay between technological innovation, efficiency in natural resource utilization, and the pursuit of green economic recovery as a path towards carbon neutrality. The research employs the Autoregressive Distributed Lag (ARDL) model to analyze the dynamics across these domains, focusing specifically on China for the period 2010–2022. Through comprehensive analysis, the study reveals significant results that illuminate potential pathways for achieving sustainable development. The findings highlight the crucial role of promoting technological innovation and optimizing natural resource use efficiency in driving green economic recovery and mitigating carbon emissions. These results emphasize the importance for policymakers to prioritize investments in innovation, resource efficiency, and green initiatives. This prioritization facilitate the transition towards carbon neutrality and foster long-term environmental sustainability and economic resilience.