Green creative Thinking, China's financial democracy, and the road to a low-carbon world economy

The investigation delves into how China's shift towards a climate-friendly economy might be accelerated through open financial markets and green technical innovation. Considering panel data from thirty countries (2010-2023), the results show that low-carbon economic growth is greatly improved by financial freedom, with a 0.13-point rise in the mutually beneficial index for every unit improvement. Adjusting the relationship between the two variables, green technical innovation adds 0.12 points and shows multiple-threshold effects, in which increased innovation capability increases both financial and ecological benefits. More favourable consequences are shown in climate change demonstration territories and over time internationally economically viable areas compared to new arrivals, highlighting differences by region. To get the most out of economic openness for sustainability, these results show how important it is for policies to work together, for institutions to back these efforts, and for regions to have specific plans. Options for policy change include expanded regulatory foundations that align with China's zero-carbon objectives, increased support for green technologies, more tailored regional strategies, and enhanced financial accessibility. • Green image significantly enhances firms' low-carbon performance. • Digitalization positively drives sustainable practices and outcomes. • Interaction of green image and digital economy amplifies carbon reduction effects. • Financial constraints and external pressures remain key barriers to low-carbon transitions.