Linking prosperity and sustainability: the economic impact of energy transition and financial stability

This study delves into the complex interplay between economic prosperity and environmental sustainability, focusing on how the shift toward cleaner energy affects financial stability in China from 2008 to 2020 by employing econometric model. The research addresses the challenge of fostering economic growth while managing environmental concerns amid efforts to transition to sustainable energy sources. The findings are promising, revealing that energy transition not only has a positive impact on financial stability but also that investments in renewable energy bolster economic resilience. Additionally, the study underscores the amplifying effect of policy support in enhancing the efficacy of energy transition measures. The implications for policymakers are significant, suggesting that integrating financial regulations with sustainability objectives could pave the way for achieving robust economic growth that is both resilient and environmentally responsible.