China's energy strategy: A comprehensive analysis of economic, social, planning, and environmental impacts

Abstract

Researching the long-term effects of technology on ecological sustainability and economic growth is a hot topic. Recently published studies clarify the complex interplay between financial elements, climate technology, green energy, and other technical advances exacerbating China's dire environmental situation. This extensive study highlights the complex nature of these elements by shedding light on their direct and indirect effects on the environment. It uses the A.R.D.L model and covers the years 1992–2024. The research shows that financial inclusion influences environmental degradation in two ways: directly and indirectly. This is because it is linked to green energy. The study confirms what many have suspected, directly and indirectly, is that green energy contributes to environmental degradation through its interactions with climate technologies. The study found that climate technology in China might unintentionally harm environmental quality, even though the developers have good intentions, revealing that economic expansion initially worsens environmental deterioration before leveling off or even decreasing. Having plans that encourage sustainable development without compromising ecological protections is crucial, as shown by the outcomes. In addition to demonstrating the strong correlation between technological advancement and environmental consequences, the study's Granger causality test uncovered a virtuous cycle wherein monetary gains lead to ecological degradation.