Promotion of green financing: Role of renewable energy and energy transition in China

This study examined the influence of green financing, renewable energy, and energy transition. Although the importance of natural resources has been discussed in the current literature, this study examines how China's environmental footprint has changed due to recent developments in green expenditure, natural resource rent (NRR) management, green technology innovation (GTI), and GDP growth. This was achieved using the NARDL method on data spanning 2000–2018. There is a need to examine how these factors affect the economic growth of underdeveloped nations. This research examines whether gross domestic product, green technological innovation, and economic policy uncertainty in China have contributed to resource curse theory. Natural resource rent stifled China's economic growth, as predicted by the resource curse theory and supported by empirical research. This is similar to how economic policy uncertainty stunted the green financing role of renewable energy and energy transition in China. Contrastingly, gross domestic product and green technology innovation help speed up financial growth while mitigating the impact of natural resources. Short- and long-term corporate plans and policies should be put in place based on the results, such as ensuring sufficient usage of natural resources, reallocating funding at regional governmental levels, and transitioning toward sustainable technology.