Does green finance investment impact on sustainable development: Role of technological innovation and renewable energy

Sustainable development can be achieved through Green finance, which incorporates environmental governance principles into the financial sector. The panel data model is employed to examine how green financing affects sustainable development in China from 1990 to 2020. Green finance has a considerable negative influence on pollution in China and positive impact on sustainable development. Technology innovation, renewable energy increase level of sustainable development. Moreover, for every 1% growth in renewable energy investment results in 1.243% rise in private sector investment. Investment, commerce, and human capital all have a significant effect on the sustainable development. In addition, green financing can help improve the environment by encouraging technical advancement. Non-state-owned businesses have this mediating effect, but state-owned companies do not. This is because of the heterogeneity of business ownership. Environmental pollution can be reduced by using green financial instruments to encourage the development of environmentally friendly technologies.