IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v94y2024ics0301420724004677.html
   My bibliography  Save this article

How green investment significantly relieves resource curse? A new perspective from fiscal decentralization

Author

Listed:
  • Hao, Xiaoli
  • Li, Ke
  • Ren, Siyu
  • Sun, Qingyu
  • Hu, Weitao
  • Xue, Yan

Abstract

Harsh weather, climate change, and pandemics have wreaked havoc on global economies. Evidently, green investment has become an imperative tool for realizing sustainable economic development in response to these calamities. This article adopts the regression discontinuity design (RDD) as well as stage heterogeneity influential mechanism analysis to study the nonlinear form and potential mechanisms of green investment in mitigating the ecological resource curse, based on provincial panel data of China from 2006 to 2020. The study findings indicate an inverted U-shaped curve in the linkage between green investment and pollution emission, with a turning point at 4.98. Moreover, the analysis of heterogeneity mechanisms reflects that local fiscal decentralization and resource dependence initially impede the effect of green investment on mitigating the ecological resource curse. Nonetheless, as green investment matures, the curse is primarily alleviated through substantive innovation in eco-friendly practices. By investigating the regional and resource endowment heterogeneity, it is obvious that inland and non-resource-based regions are more inclined to benefit from green investment in alleviating the environmental resource curse. Thus, this paper proposes certain policy recommendations tailored to regional characteristics, such as fostering a greener consumption mindset and minimizing industry reliance in resource-based zones.

Suggested Citation

  • Hao, Xiaoli & Li, Ke & Ren, Siyu & Sun, Qingyu & Hu, Weitao & Xue, Yan, 2024. "How green investment significantly relieves resource curse? A new perspective from fiscal decentralization," Resources Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:jrpoli:v:94:y:2024:i:c:s0301420724004677
    DOI: 10.1016/j.resourpol.2024.105100
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724004677
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.105100?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:94:y:2024:i:c:s0301420724004677. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.