Drivers of Green Economic Growth in China: The Roles of Renewable Energy, Renewable Energy Technology Innovation, and Green Finance under Government Intervention

Abstract

Green economic growth, which balances economic development with environmental sustainability, is fundamental to achieving sustainable development goals. This study investigates the distinct roles of renewable energy, renewable energy technology innovation (RETI), green finance, and government intervention in promoting green economic growth across 30 Chinese provinces from 2010 to 2021. To address cross-sectional dependence and enhance robustness, the analysis employs the Driscoll-Kraay estimator, Panel-Corrected Standard Errors (PCSEs), and the Method of Panel quantile regression (PQR). Results indicate that renewable energy, RETI, and green finance significantly promote green economic growth. In contrast, government intervention exhibits a U-shaped relationship with green economic growth. Furthermore, government intervention positively moderates the effects of renewable energy and RETI, but its moderating effect on green finance is weak and statistically insignificant. This study therefore recommends optimizing government functions by strengthening coordination in renewable energy development and technological innovation, while reducing excessive intervention in green finance to promote sustainable development