What kind of fiscal policies and natural resources efficiency promotes green economic growth? Evidence from regression analysis

Abstract

The promotion of green economic development and sustainability has received increasing attention throughout the world in recent years. Regarding global emission reduction efforts, China plays a pivotal role as one of the world's biggest economies and a significant player. Using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) model, analyzes how government spending and natural resource efficiency have affected green economic development in China from 1990 to 2020. We conduct a regression study to understand better how fiscal policy measures and indices of natural resource efficiency might work together to foster environmentally responsible economic development. The findings show that green economic development is significantly correlated with key interventions in fiscal policy and natural resource efficiency measures. These results light the efficacy of certain fiscal policies and resource management practices in promoting sustainable development and mitigating the environmental impact of economic activities in China.