The role of green financing and natural resources towards sustainable environment: A comparative study of US-China

The US and China are the most significant contributors to global CO2 emissions. Though both countries have taken tremendous strides toward reducing CO2 emissions, the mission towards carbon neutrality and Sustainable Environment (SEN) remains a far cry. Because of the significance of both countries in the world and the number of natural reserves (NTR) they both hold, the present study is conducted to draw a comparison between US and China in terms of the determining the role played by NTR, green financing (GFN) for SEN. This study employs a sophisticated time-series estimate technique called BARDL to consider the most critical factors in the US and China context. In addition, the present study also validates the relevancy of Environment Kuznets Curve (EKC) curve in both countries in the presence of NTR and GFN. The findings through the BARDL reported incremental effects of NTR towards CO2, and detrimental effects of GFN towards CO2, whereas the findings also reported the validation of EKC. Based on the findings, both of the countries are recommended to take severe initiatives for preserving the NTR, whereas there is a need to have more environmentally friendly initiatives backed by GFN and sustainable investments that need to be deployed for the betterment of ecology.