Advancing green growth: The influence of innovation, knowledge, digitalization, circular economy practices, and energy transitions

This study investigates the determinants of green growth with a particular focus on innovation (INN), knowledge (KN), renewable energy (RE), digitalization (DIG), and circular economy (CE) practices. Using annual time series data from 1990 to 2002 for China and applying the autoregressive distributed lag framework along with robustness tests via fully modified and dynamic ordinary least squares estimators, the analysis examines short- and long-run dynamics. The findings indicate that RE, INN, and KN consistently enhances green growth, while the influence of DIG is supportive but context dependent. Conversely, the CE has limitations, with results revealing that its current implementation may not generate the expected sustainability gains. The findings confirm the stability of the long-run relationship, although diagnostic tests reveal potential variance instability in the short run. The results extend sustainability transition and knowledge-based growth theories by demonstrating how DIG and KN systems complement RE in advancing environmental performance. From a policy perspective, our results emphasize the need to strengthen INN capacity, scale RE adoption, and reform CE frameworks to ensure more effective integration with DIG.