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Keeping aside the debate over whether resources are a burden or a blessing, the resource curse theory has been put to the test in the literature using several significant variables. The “resource curse” concept does emphasize the need for green financing, but sadly, this was not taken into account. Recently, due to strong environmental pressure, the need for green financing has been acknowledged. Keeping this in mind, it is crucial to consider how green finance might improve the use of natural resources to stimulate economic growth. Therefore, in this work, we explore the role of green financing, innovation, and economic complexity in the theory of the resource curse. The study used a Markov switching equilibrium correction model with shifts for the data from 2000 to 2019 in a Chinese context. Due to the overuse of natural resources, empirical data support the presence of the resource curse theory in China. The study's findings also support the favorable effects of innovation, the economic complexity index, and green finance on economic performance. In order to turn China's resource curse into a resource blessing, the study directs policymakers, government officials, and scholars toward theoretical and practical implications related to green finance and innovation. [ABSTRACT FROM AUTHOR]

The study was aimed at investigating the dynamic relationship between environmental taxes, green financing, and carbon dioxide (CO2) emissions in Brazil, China, India, and South Africa from 1994 to 2019. To thoroughly examine the proposed relationship, a family of robust econometric methods is used to get reliable and accurate results. Our evidence indicates that green finance and CO2 emissions are negatively connected with each other. Similarly, positive relationship is found between environmental taxes and CO2 emissions. Additionally, environmental taxes and green finance are positively related as well. Further, the results of the Method of Moments Quantile Regression estimator indicate that green finance and CO2 emissions decrease in countries with higher pollution compared to those with lower pollution. Interestingly, environmental taxes only contribute to pollution in countries with higher emissions, whereas CO2 emissions increase environmental taxes in all sample countries. Lastly, green finance has a mitigating effect only in countries with greater pollution, and CO2 emissions have a negative rebound effect on green finance in countries with greater CO2 emissions. According to the evidence, green financing can be an effective tool for promoting environmental quality. By allocating the funds collected from environmental taxes to green financing, environmental sustainability can be promoted in sample countries. [ABSTRACT FROM AUTHOR]