Clarifying the relationship among green investment, clean energy consumption, carbon emissions, and economic growth: a provincial panel analysis of China.

As a financial activity with the main purpose of ecological protection and environmental governance, green investment has important practical significance for promoting sustainable economic development. Previous studies have not addressed the relationship between green investment, clean energy consumption, carbon emissions, and economic growth. We use panel data from 30 provinces and cities in China from 2003 to 2017 to build a simultaneous equation model, which can evaluate the nonlinear relationship and avoid the endogeneity of the model. The research results show that, firstly, green investment has a significant positive impact on clean energy consumption and economic growth. However, it has no significant effect on carbon dioxide emissions. Second, the curve of clean energy consumption and per capita GDP conforms to the positive U-shaped characteristic, while the curve of carbon emissions and per capita GDP conforms to the EKC curve, meeting the inverted U-shaped characteristic. And the inflection point of clean energy use occurred earlier than the inflection point of CO emissions. When per capita GDP is greater than 105,735.93 (RMB), the use of clean energy will increase, and carbon dioxide emissions will decrease, thereby achieving a win-win situation for the environment and the economy. Finally, according to the survey results, it is suggested that green investment is an effective means to encourage clean energy consumption and economic growth.