The impact and prediction of green talents on China economic development
Ming Lei · International Review of Economics & Finance · 2026
As China’s economy transitions beyond its traditional demographic dividend, the cultivation of a sustainability-oriented workforce has become crucial for long-term development. This study examines the impact of such green human capital on economic growth and identifies key determinants of this relationship. Using panel data from 2000 to 2021, we construct a composite index using five indicators: Investment in Environmental Pollution Treatment, Total Energy Consumption, Number of Undergraduates, Green Labor Force, and Gross Dependency Ratio. Principal Component Analysis is employed to address multicollinearity, followed by Principal Component Regression. The results show that the constructed index strongly predicts economic development, with the model demonstrating high explanatory power. These findings highlight the critical importance of green competencies in driving economic transformation. The study concludes that strategic investment in and deployment of sustainability-focused human capital should be prioritized in national policy to advance China’s transition toward an environmentally sustainable growth model.