Achieving Synergies of Carbon Emission Reduction, Cost Savings, and Asset Investments in China’s Industrial Sector: Towards Sustainable Practices

This study aims to investigate the dynamic correlations among carbon emission reduction, total cost savings, and asset investments in industrial sector China. uses panel vector autoregressive (PVAR) model generalized method of moments (GMM) obtain three conclusions based on Chinese industry data from 2005–2019. (1) The interaction between reduction is bidirectional. A decrease can result persistent cutting, while measures shrinking costs lead reducing emissions with lasting effects. Moreover, decline has strong inertia, softer. (2) Green investment promotes efficient sustainable. Conversely, completing milestones will inhibit expansion subsequent period. (3) China’s already achieved “synergy decrease” development model. transmission chain “asset investment–carbon decline–cost decrease–carbon abatement” been established. Nonetheless, a gap remains mature cycle decarbonization, saving, effectiveness. Finally, it recommended that government focuses synergistic effect encourages continuous green investment, systematically organizes decarbonization actions. provides basis for increasing interest companies transitioning low-carbon economy, contributing simultaneous realization economic benefits.