Manuscript received December 5, 2024; accepted March 2, 2025; published June 26, 2025.
Abstract—Extreme weather events caused by climate change are wreaking havoc on ecosystems and human life, underscoring the urgent need to research methods to mitigate climate change. Green investment has emerged as a crucial strategy in combating climate change by fostering low-carbon technologies, renewable energy projects, and sustainable infrastructure. So far, however, there is little research examine empirically whether green investments can effectively mitigate climate change. This paper uses a panel two-way fixed effects model to explore the impact of Chinese green investments on climate change in countries worldwide, as well as the heterogeneity of this effect. Results indicate that green investments significantly reduce CO2 emissions worldwide. This effect is particularly pronounced in countries at the early stages of urbanization, those with lower levels of economic development, and regions where manufacturing plays a significant role. This study provides empirical evidence supporting the promotion of green investments as a means to achieve sustainable growth and offers insights for tailored and effective policy-making in diverse socio-economic contexts.
Keywords—green investment, climate change, sustainable growth, heterogeneous effects, cross-county
Cite: Xiali Wu, "How Does Chinese Green Investment Affect Global Climate Change?" Journal of Economics, Business and Management, vol. 13, no. 2, pp. 232-240, 2025.
Copyright © 2025 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).