Nexus between green innovation, policy stability, and environmental sustainability on sustainable economic growth: the case of China

This study assesses the mediating roles of green innovation, policy stability, and environmental sustainability in influencing economic growth, with a focus on their intricate interplay with China's 14th five-year plan, examining how these factors collectively impact economic progress. A primary quantitative approach was utilized, based on survey responses collected from 600 experts. Data analysis and mediation testing were performed through the structural equation modeling (SEM) the Baron and Kenny approach, respectively. The findings show that the impact of green innovation is 3.2 times greater than the direct effect of policy stability on economic growth. Green innovation mediates about 46% of the impact of environmental sustainability on economic growth. Additionally, the synergy of green innovation, stable policies, and environmental sustainability has a significant effect on economic growth. Emerging economies can achieve economic growth by implementing effective policies that promote green innovation and environmental sustainability. This study's findings hold important consequences for policymakers, organizations, and stakeholders, providing a foundational framework for policymakers and government officials to develop effective strategies and regulations regarding green innovation and its impact on sustainable economic growth.