Over　time　environmental　degradation　has　become　a　severe　concern　globally,　especially　in　China.　Therefore,　to　solve　this　serious　issue,　environmental　economists　have　tried　their　best　to　explain　the　crux　of　environmental　degradation.　Besides　such　efforts,　they　have　not　reached　a　single　opinion.　Nowadays,　economic　progress　has　been　considered　a　primary　target　to　compete　with　other　nations　at　any　cost　of　environmental　degradation.　But,　there　may　be　some　alternative　solutions　to　reduce　such　costs,　and　the　existing　literature　has　not　considered　such　core　indicators.　Thus,　the　present　study　assesses　the　eco-friendly　variables　for　a　sustainable　environment　in　which　green　finance,　green　energy,　and　research　and　development　expenditures.　Moreover,　this　study　also　focuses　on　socio-economic　factors　like　economic　growth,　urbanization,　and　openness.　Time　series　estimators　such　as　fully　modified　ordinary　least　square　and　Markov　switching　regression　model　are　employed　to　investigate　selected　variables＇　long-run　impact　on　carbon　emissions.　The　estimated　outcomes　show　the　significant　contribution　of　green　finance,　green　energy,　openness,　and　R&D　expenditures　to　environmental　quality.　Likewise,　China＇s　urbanization　and　economic　progress　are　harmful　to　environmental　quality.　Moreover,　this　study　investigates　the　causal　association　between　the　selected　variables　and　shows　the　two-way　causal　association　between　openness　and　emissions,　RE　and　openness,　and　green　finance　and　R&D　expenditures.　The　results　of　the　uni-directional　association　are　also　interesting.　The　current　study　develops　some　interesting　policy　implications　for　a　sustainable　environment　on　behalf　of　empirical　outcomes.