Explore the Complex Interaction between Green Investment and Green Ecology: Evaluation from Spatial Econometric Models and China’s Provincial Panel Data

From the economic perspective, China has made remarkable progress, yet environmental concerns represent an alarm to country’s long-term prosperity. The associated relationship between green investment and economy important implications for environment. Whether there is interactive ecology, current views seem be at odds with each other. This paper employs a panel vector autoregressive model construct empirical analysis of China’s provincial data from 2005 2019. Specifically, generalized moment estimation, impulse response function, variance decomposition, other measurement methods were applied study interaction ecological development. research results show following: (1) inertial development system seriously restricts progress levels, ecology significant self-reinforcing trend; (2) two-way shows positive spillover effect in short term, but gradually weakens long run; (3) impact on most relationship, western region prominent. Therefore, government should standardize standards use policy guidance promote regional transfer resources. Financial institutions appropriately lower financing threshold polluting enterprises municipal construction leverage more social funds flow into technologies industries. Companies raise awareness disclosure, ban outdated production capacity, transition cleaner models secure funding.