Green Investment, Technological Progress, and Green Industrial Development: Implications for Sustainable Development

Abstract

Environmental reformation of old-fashioned sectors and the establishment of new pro-ecological businesses via green investment are the main driving forces behind the revolution in the Chinese industrial sector. Green investment aids in the growth of environmentally friendly industries. Hence, the primary objective of the analysis is to investigate the impact of green investment and technological progress on green industrial development. The results of the unit root tests encourage us to apply the ARDL model. The short and long-run estimates attached to R&D expenditures are positively significant, confirming that increasing R&D expenditures help improve the industrial structure. Similarly, the short and long-run estimates attached to green finance investment are positively significant, signifying that green investment benefits the industrial structure. Empirical findings show that technology significantly aggravates industrial structure development in only the long run. Thus, for green industrial development in China, there is a need to increase green investment and technological development up to top-level design.

Study of the Effect of Green Investment Policy, Technological Innovation, and Sustainable Development on Industrial Competitiveness

“…Green investment policies have been found to positively impact industrial competitiveness, leading to cost reductions and a competitive edge in environmentallyconscious markets [23], [24]. Government spending on green initiatives, tax incentives for sustainable practices, and stringent environmental regulations are key components influencing industry behavior [25].…”

“…Industries adhering to green policies can experience cost reductions through energy efficiency measures, which can improve their competitiveness [26]. Additionally, these industries can gain a competitive edge in environmentally-conscious markets by meeting the growing demand for sustainable products and services [27]. Overall, embracing environmentally conscious policies can have positive impacts on industrial sectors, promoting both economic growth and sustainability.…”

“…Technological innovation plays a crucial role in this context. The results of various studies indicate that increasing research and development (R&D) expenditures and green finance investment positively impact industrial structure and development [27]. Additionally, technological progress has a significant long-term effect on green industrial development [23].…”

“…The results of various studies indicate that increasing research and development (R&D) expenditures and green finance investment positively impact industrial structure and development [27]. Additionally, technological progress has a significant long-term effect on green industrial development [23]. Therefore, insights into technological innovation are essential for understanding the relationship between green investment policies and industrial competitiveness [38].…”

Green Investment and Sustainable Business Development: Risks and Opportunities for China

“…Chen et al [11] say that one of China's risks is the possible cost to the economy of switching to more environmentally friendly ways of doing things. This could include job losses in industries that rely heavily on nonrenewable resources, alongside the financial costs of implementing new technologies and practices.…”