As global concerns about climate change intensify, understanding the determinants of Green Total Factor Productivity (GTFP) in emerging economies has become essential. This study examines the drivers of Green Total Factor Productivity (GTFP) in BRICS countries (Brazil, Russia, India, China, South Africa) from 2000 to 2022, focusing on institutional quality, climate policy stringency, energy consumption, human capital, and sectoral growth. Using the Pooled Mean Group-Autoregressive Distributed Lag (PMG-ARDL) model, supported by panel causality tests and robustness checks, the study reveals a positive long-term relationship between GDP and GTFP (coefficient = 0.67), with bidirectional causality. Institutional quality (elasticity = 0.42) and human capital (elasticity = 0.25) significantly enhance GTFP, while climate policy stringency initially reduces GTFP (–0.60) but becomes neutral over time. Sectoral contributions show that industry (0.18) and services (0.13) have the most significant impacts on GTFP. The study contributed to an integrated approach combining macroeconomic, institutional, and environmental factors. Policy implications emphasize the need for stronger institutions and energy efficiency. Future research should explore broader geographic contexts and micro-level dynamics to strengthen GTFP models.
This study discusses the role of Foreign Direct Investment (FDI) in China's Green Innovation (GI) in coastal and inland areas, especially regional disparities. Quantile regression is used to study the panel data of 31 provinces (2010-2020) to explore the impact of FDI on GI at different stages of development. Key variables are FDI, financial development, industrialization, service sector growth, trade, and cultural environment. The results indicate that FDI significantly increases GI, especially in regions of inland areas with low innovation. In coastal areas, however, the effect of FDI on GI lessens as the local industries excel in green technologies. Financial development improves GI in the coastal regions; industrialization and service sector growth have mixed results. Policymakers should focus their FDI strategies on areas of lower innovation in order to enact sustainable development. Future research needs to consider the global relevance of the results by looking at countries with different economic backgrounds and examining the long-term effects of FDI, taking into account government policies and environmental regulations. This study contributes to the understanding of the dynamics of FDI and GI in China, which can provide information applicable to the development of sustainable growth policies.