The triple power play: green finance, green innovation, and renewable energy in transforming China's carbon footprint

This study examines the effects of green finance, renewable energy, and green innovation on China's carbon intensity using panel data from 30 provinces spanning 2000 to 2022. Utilizing the panel QARDL-ECM model, the analysis captures both short- and long-term impacts while accounting for the heterogeneous and asymmetric influences of these factors across varying levels of carbon intensity. The results show that green finance significantly reduces carbon intensity in both the short and long term, whereas renewable energy and green innovation primarily drive long-term reductions. Additionally, the asymmetric effects reveal that green finance and renewable energy have a stronger impact in provinces with higher carbon intensity, highlighting the necessity of region-specific policy interventions. This study advances previous research by adopting a dynamic, quantile-specific framework, offering deeper insights into how policy mechanisms can be effectively tailored to enhance environmental sustainability across different regions.