Natural resources, economic growth, and environmental sustainability in China: the role of technological innovation

Juan-Juan Xiong, Li-ping Zheng and Chang-song Wang

Journal of Environmental Planning and Management, 2025, vol. 68, issue 6, 1472-1495

Abstract: Economic development, energy sustainability, and pollution are issues related to human survival, and it is crucial to properly address the relationships between them. This article examines the nexus between natural resources (NRs), technological innovation, economic growth (EG), and environmental sustainability in China by applying a fixed effect model, random effect model, instrumental variable estimation, using panel data from 30 Chinese provinces as the basis of investigation. (1) There is a “resource curse” in the role of NRs in economic development; the accumulation of human capital, the degree of marketization and the degree of urbanization can mitigate the phenomenon of “resource curse”. (2) The phenomenon of “resource curse” is mainly caused by the displacement effect of technological innovation. (3) Natural resource exploitation and economic development inhibit environmental sustainability, while technological innovation promotes environmental sustainability. Based on the research conclusions, policy insights are proposed to increase the degree of marketization, strengthen human capital accumulation, increase scientific and technological investment, and increase the supply of renewable energy, with a view to providing assistance in promoting the harmonious development of human beings and nature as well as the economic development of various regions.

Date: 2025
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DOI: 10.1080/09640568.2024.2311814

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