Climate change, driven by industrialization and urbanization, poses a significant threat to global ecosystems. Green economic growth, emphasizing economic progress while minimizing environmental impact, is crucial for mitigating these effects. The cultural industry, contributing significantly to global GDP, has a substantial role to play in this transition. This study focuses on China, a nation with a rich cultural heritage and a growing cultural industry, coupled with active pursuit of sustainable development initiatives in the financial sector. The research aims to assess the influence of green financing within China's cultural industry on overall green growth, offering valuable insights for both China and other nations seeking sustainable development in the post-COVID era. The study's regional focus provides a nuanced understanding of local-level implementation of green financing strategies. The calculated green growth index for all Chinese provinces allows for comprehensive evaluation of progress across different regions. The study also highlights the often-overlooked role of the cultural industry as a driver of environmental awareness and economic prosperity.

Existing research highlights the importance of green financing in fostering sustainable development. Studies show green finance facilitates eco-friendly projects, attracts private investment in sustainable ventures, and contributes to the development of a country's financial market, promoting financial inclusion and economic growth. Other research emphasizes the role of the cultural industry in promoting sustainability, fostering social awareness, and driving innovation. Digitally oriented cultural and creative industries are particularly highlighted for their potential to accelerate green innovations. However, a gap exists in research on the intersection of green financing and the cultural industry. This study addresses this gap by investigating this relationship within the context of China's 32 provinces.

This study uses panel data from 2010 to 2021 for all 32 provinces in China (384 data points), sourced from the China Statistical Yearbook, China Premium Database, and China Economic Government Reports Database. A green growth index (1-10 scale), calculated using 12 indicators from Kim et al. (2014) related to production, consumption, and trade, serves as the dependent variable. The primary independent variable is cultural sustainability investment. Control variables include carbon dioxide emissions (CO2), financial market size, income levels, and the ICT diffusion index. The analysis begins by assessing cross-sectional dependency using Pesaran's (2004) CD test. Stationarity is examined using Pesaran's (2007) CIPS test. Long-run co-integration is determined using Westerlund's (2007) approach. The primary estimation method is the Common Correlated Effects Mean Group (CCEMG) estimator, chosen for its efficiency in handling time-varying unobservable variables. A robustness check is conducted using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) approach to validate the findings.

The CCEMG estimation results reveal that a 1% increase in cultural sustainability investment leads to a 0.63% increase in green growth. Conversely, a 1% increase in CO2 emissions results in a 0.14% decrease in green growth. Changes in financial market size show no significant impact. A 1% increase in income level is associated with a 0.059% increase in green growth. Surprisingly, a higher ICT diffusion index is linked to a decrease in green growth (-0.25%), possibly due to increased electricity consumption from conventional power sources. The PMG-ARDL robustness check generally confirms these findings, although the magnitudes of the coefficients vary slightly. Specifically, the PMG-ARDL results show a 0.322 coefficient for cultural sustainability investment, a -0.204 coefficient for CO2 emissions, and a -0.153 coefficient for the ICT diffusion index, all statistically significant.

The findings highlight the significant positive impact of cultural sustainability investment on green growth, supporting the importance of integrating environmental considerations into cultural initiatives. The negative impact of CO2 emissions underscores the necessity for emissions reduction strategies. The unexpected negative relationship between the ICT diffusion index and green growth points to the need for sustainable energy practices in the digital sector. While income growth positively influences green growth, the lack of significant influence from financial market size suggests that green growth may require targeted policies beyond general financial development. These results contribute to a deeper understanding of the complex interplay between culture, finance, and sustainable development, particularly within the context of China's diverse provincial economies.

This research demonstrates a clear positive correlation between investments in cultural sustainability and green growth in China's provinces. The negative impact of CO2 emissions and the unexpected negative correlation with the ICT diffusion index highlight the need for policy interventions that promote sustainable energy sources and practices. Future research should investigate regional disparities in green financing, the effectiveness of existing policies, the roles of stakeholders, and the long-term impacts of green financing on sustainable cultural projects, especially in light of the ongoing effects of the COVID-19 pandemic.

The study's reliance on secondary data may limit the depth of analysis. The green growth index, while comprehensive, relies on a specific set of indicators that might not fully capture all aspects of green growth. The cross-sectional nature of the data, although enriched by the panel design, may limit causal inference. Further research could explore potential confounding variables not included in this analysis.