Financial innovation, environmental degradation, and environmental Kuznets curve trends in China

This study examines the environmental Kuznets curve (EKC) theory and its possible relevance in the context of China and the complex and one-of-a-kind interaction between financial innovation, environmental deterioration, and China. China's fast industrialization and consequent economic expansion have been accompanied by significant environmental difficulties, despite the country's status as the world's second largest economy. The research takes a secondary data approach to its investigation of this topic, drawing on a large dataset that spans many decades to ensure a thorough examination of the dynamic interaction between financial innovation and numerous environmental variables. The primary objective of this research is to determine whether or not recent developments in financial technology have contributed to the current trends of environmental degradation in China. In keeping with the central tenet of the EKC hypothesis, this study uses cutting-edge econometric techniques to investigate the existence of nonlinear correlations and inflection points. In addition, the research analyzes how policy interventions and regulatory measures have shaped the tendencies spotted. In elucidating the usefulness of financial innovation as a tool for promoting environmental betterment, this study's findings substantially contribute to the current discussion around sustainable development and economic policy. This research also carefully assesses the applicability of the EKC theory in China, providing insights that may be used to inform future environmental policy decisions. Ultimately, the success of measures to promote sustained economic growth and the preservation of the environment in China depends on an in-depth understanding of these delicate relationships. In addition, the lessons learned from this study have the potential to serve as a guide for economies facing similar difficulties.