Sustainable energy innovation and the role of fiscal development in promoting environmental sustainability

Abstract

The green economy might be affected by the way governments handle their budgets. China's urban ecological innovation is studied through the country's investment in R&D and education. The sample size for this study is 276 cities, with data gathered between 2004 and 2019. Spending on study and instruction has been shown to contribute to the development of green technology, albeit the exact nature of this relationship varies across time and place. Because of the interplay between Increasing Wealth in Cities stress and budgetary stress, the resultant of government spending on green technology innovation might be non-linear. This is quite important. The promotion resultant of education investment on green technology development is somewhat stable. Still, the beneficial impact of fiscal R&D expenditures on green technical innovation declines when growth in economic pressure and fiscal strain rises. Government investment in R&D and education may also help the environment by reducing waste and pollution. Improving the structure of fiscal spending promotes the development of environmentally friendly technological innovation, which in turn boosts environmental quality.