Role of Stock Market Return and Natural Resources Utilization on Green Economic Development : Empirical Evidence from China

Improving environmental impact efficiency has become crucial for resolving environmental challenges as concerns about global warming and economic recovery. This study examines the impact of economic growth (GDP), stock market return (SMR), and natural resource rent (NRR) on financial development (FDP) in China from 1990 to 2020. The findings show how reliance on natural resources has a positive impact on the effectiveness of carbon emission reduction. After changing the key variable indicators, the evaluation method, and the disruptions brought on by specific samples and the green economic development, this conclusion is still valid. According to the mechanism analysis, natural resource depletion can stifle the development of green technologies and limit the investment of stock market return, all of which can slow down the increase in carbon emission efficiency and the development of green economic growth. Additionally, the heterogeneity analysis demonstrates that resource-based cities generally suffer from the carbon emission efficiency curse. Environmental policies are helpful for seeking to avoid the carbon emission efficiency curse, as the adverse effect of natural resource dependence on greenhouse gas emission efficiency is not substantial in the Two Control Zone cities and major locations for air prevention and mitigation. This study offers a fresh viewpoint on China's and other developing nations' efforts to reduce their carbon emissions and transition to a low-carbon economy