The impact of new energy industry on environmental and economic benefits: Evidence from China

The aggravation of the global warming crisis, due to excessive consumption of traditional energy, urgently calls for the strategic goal of sustainable development. This study addresses endogeneity concerns by employing panel fixed effect and DID models, employing panel data from China's provincial green finance index spanning from 2016 to 2021. The empirical findings indicate that: (1) the impact of the new energy industry on environmental and economic benefits is more pronounced in inland areas characterized by lower GDP and smaller population size; (2) this effect is driven by green technological innovation, government incentive policies, and job creation. Drawing upon these results, this paper offers a range of pertinent recommendations at governmental, industrial, and societal levels to foster sustainable development, thereby enhancing social welfare.