Evaluating the Socioeconomic and Environmental Impacts of Renewable Energy Transition and Green E-Business on Urban Sustainability

Abstract

This research investigates the environmental and socioeconomic influences of green e-business practices and renewable energy transition on urban sustainability. Moreover, the primary purpose of this study is to evaluate how technology innovation, resource efficiency, government policy and incentives, and renewable energy help in sustainable urban development. This study followed a quantitative research design that applied “structural equation modeling” (SEM) to examine the connection between critical variables. Stratified random sampling was utilized to select the sample size. Additionally, surveys have been conducted on urban stakeholders to collect the relevant data. Furthermore, to analyze the collected data SPSS has been utilized. Significantly, the results highlight that adopting renewable energy, supported by technological innovation and government policies, remarkably contributes to urban development and sustainability. In addition, government incentives and policies were observed to influence resource sustainability and efficiency positively. At the same time, adopting renewable energy was strongly associated with improved socioeconomic and environmental outcomes. Furthermore, technology innovation has a considerable role in resource management and strongly assists in urban sustainability. However, green e-business practices exhibited no direct influence on urban sustainability or resource efficiency, encouraging a focus on the roles of technological innovation, government support, and renewable energy for achieving better urban sustainability. Therefore, this study offers valuable information for urban planners, businesses, and policymakers, highlighting that integrated strategies emphasizing technological innovation, policy support, and renewable energy can drive better urban development and sustainability.

1. Introduction

The urban population has been rising continuously, with cities facing unprecedented challenges in balancing economic growth with social and environmental sustainability [1]. Today, half the world’s population lives in cities, and the world in a hurry is being trained to turn cities into prominent places for people to live in. Additionally, it is stated that by 2030 the world’s urban population will increase by 60% [2]. As this urban population expands so rapidly, it will generate a significant set of socioeconomic demands and place heavy pressure on the use of natural resources, leading to demands for energy, pollution, and a limited availability of resources [3]. Urban sustainability has become an inevitable consideration in trying to solve the abovementioned issues [4]. Sustainable urban development does not need to improve the quality of urban life alone because it concerns the global impact of urban activity on the environment [5]. Against this backdrop, urban sustainability moves are being made toward transitioning to renewable energy and implementing green businesses in business practices, government policies, and technology innovation [6]. However, it is critical to shift toward renewable energy such as solar, wind, and bioenergy to lower urban carbon emissions and diminish dependence on fossil fuels (the primary source of greenhouse gas emissions) [7]. Green businesses are concerned with minimizing the footprint of the environment through practices like sustainable production processes, waste reduction strategies, and green products [8]. Moreover, green spaces are also important for generating a sustainable and healthier living atmosphere in cities [9]. The initiation of this implementation for the initiatives is integral for transforming the urban economy by including green growth, uplifting resource efficiency, and promoting the well-being of the public and the environment.

Moreover, this research is inclined toward properly investigating the overall influence of the rate of renewable energy adoption, followed by green business practices, with resource efficiency acting as the mediation variable. Furthermore, by explaining this relationship this study aims to identify how these factors contribute to sustainable development and provide relevant insights into the synergies that emerged from the initiation of renewable energy and practices of green businesses. The complete significance of this research mainly lies in the overall potential of providing invaluable information for urban planners, business leaders, and policymakers aimed at creating sustainable cities. Renewable energy and green business practices, together with the formation of robust policies, have been identified to have the most significant impact on promoting urban sustainability, which is a highly complex, multifaceted phenomenon [10]. So far, the literature has leaned toward the significance of renewable energy and green business practices that can initiate urban sustainability. According to Xiong et al. [11], cities are more inclined to adopt renewable energy than other areas, achieving significant emission reductions in greenhouse gases, improved air quality, and greater energy resilience. The existing studies have realized that renewable energy is not just a solution for the environment but also a catalyst for the economy. It is also the key for local economies to initiate the creation of jobs and lower their dependence on imported fossil fuels.

This research’s main aim is to evaluate the socioeconomic and environmental impacts connected with the transition to renewable energy and the practices of green e-business on urban sustainability, focusing on the mediating role of resource efficiency. This study is further helpful in producing highly empirical evidence on the way renewable energy and practices of great business collectively contribute toward sustainable urban development while considering the modeling influences of the policies by government and technology. The examination of this research provides insights into the different mechanisms that lead sustainable practices toward positive outcomes in urban settings. Expected conclusions include the idea that adopting renewable energy and practices of green businesses adequately supported by solid and favorable policies and technological advancement is highly important for improving urban sustainability significantly. This research anticipates finding that resource efficiency is an integral factor that acts as a crucial mediator in helping enhance the overall impact associated with these practices on sustainable urban development.

This research holds strong relevance for a wide range of stakeholders, including urban scientists, planners, policymakers, and business leaders working to promote sustainable development by addressing the socioeconomic and environmental impact of renewable energy and the practices of green business. This study helps to provide a highly comprehensive perspective on urban sustainability that transcends the disciplinary boundaries. The findings are highly crucial for urban planning, environmental science, and economics scientists, as well as policymakers and business leaders seeking evidence-based solutions to initiate sustainable urban transformation. This study is inclined toward bridging the gaps in the present understanding of urban sustainability by investigating the interactions between the adoption of renewable energy and practices of great businesses, government policies, technological innovation, and resource efficiency. Through its comprehensive approach, this research has been highly imperative in contributing to the growing body of knowledge on sustainable urban development, followed by giving insights that inform future strategies for developing resilient, inclusive, and environmentally responsible cities.

2. Literature Review

Green business practices are fundamental tenets of the sustainability landscape. Companies practicing sustainable business practice the trends of maximizing footprints on urban ecology, according to Ma et al. [12]. Adopting green consumerism leads firms to innovate to mitigate the environmental impact as they strive to achieve consumers’ demands for sustainable products/services [13]. Green businesses are enabled by adopting renewable energy, which in turn results from the policies and incentives of the government [14]. He and Chen [15] argued that the government’s influence on businesses’ and households’ decisions to adopt sustainable practices is through providing subsidies, tax incentives, and regulatory frameworks. Their objectives involve promoting green practices by implementing a solid standard for the other stakeholders to emulate and enhancing a sustainability culture within urban environments [16]^.

Technological innovation is essential to accelerate the adoption of renewable energy and business practices. Additionally, over the last few years ecological damage has created the greatest threats to humanity. Subsequently, it is possible that components including renewable energy consumption, environmental policy, and green technology innovation can play an important role in achieving ecological sustainability [17]. Advances in technology, such as the storage of energy, smart grids, and eco-friendly production methods, have lowered the cost and made renewable energy more reliable and cost-effective [11]. Similarly, technologies for green business, such as biodegradable packaging, low-emission logistics, and circular business models, have ramped up the companies’ capabilities to reduce the impact on ecology [18]. As Lutfiani et al. [19] indicate, resource efficiency is crucial and is a mediating variable in the relationship between renewable energy, green business practice, and urban sustainability. Helping to reduce waste, lower energy consumption, and maximize the use of raw materials has become much more critical to the environmental sustainability of a city in the context of urban development [20]. Cities are more inclined toward reducing their ecological footprints and increasing their resilience against resource scarcity by enhancing resource efficiency.

However, achieving urban sustainability requires a highly integrated approach holistically considering socioeconomic, environmental, and technological factors [21]. Moreover, the efficiency of the green economy is considered one of the core components of urban environmental and economic development [22]. In recent years, renewable energy initiatives and green e-business have been recognized as substantial opportunities for economic growth [23]. More rapid adoption cites substantial economic gains via job creation, a rapidly dropping cost of health care, and a much more significant increase in energy security [11]. However, such e-business activities, if practiced as great e-businesses, are highly integral in contributing to the socioeconomic fabric of urban areas by attracting environmentally conscious consumers and driving production innovation of sustainable products [12]. The focus of this research has been on how these dynamics of green business practices and the transition to renewable energy contribute together in assessing the way that both collectively make concrete contributions to urban sustainability. Here, the objectives of this research are to evaluate the impact of renewable energy and rural green e-business on urban sustainability in terms of ecology and economics.

3. Hypothesis Development

A robust set of hypotheses is used to guide this research by explaining the relationships between the independent variables (renewable energy adoption rate, green business practices, government policy, and technology innovation), the mediating variable (resource efficiency), and the dependent variable (urban sustainability). There is a theoretical framework with which these hypotheses are underpinned, as the sustainability of the urban environment is a product of multiple interrelated factors, with each variable contributing uniquely to the overall urban sustainability. The following hypotheses are proposed for this study:

H1: 

There is a significant influence associated with higher renewable energy adoption on improved urban sustainability.

H2: 

There is a significant influence of the practices of green e-business on improved urban sustainability.

H3: 

There is a significant influence of the policy and incentives of government on improved urban sustainability.

H4: 

There is a significant influence associated with technology innovation on improved urban sustainability.

H5: 

There is a mediating effect of resource efficiency in building the relationship between a higher adoption rate of renewable energy and urban sustainability.

H6: 

There is a mediating effect of resource efficiency in building the relationship between green business practices and urban sustainability.

H7: 

There is a mediating effect of resource efficiency in helping build the relationship between the policy and incentives of government and urban sustainability.

H8: 

There is a mediating effect of resource efficiency in building the relationship between technology innovation and urban sustainability.

This framework views urban sustainability as an emergent property of complexity among the environmental, economic, and social systems. Renewable energy and practices of green businesses supported by the policies of government and advancements in technology are expected to improve urban sustainability by promoting the efficiency of resources and reducing the impact on ecology by urban activities. By being focused on this interdependence, this study is inclined toward contributing significantly toward a more holistic understanding of urban sustainability, followed by offering insights guiding decision-makers in helping formulate effective sustainability strategies.

4. Materials and Methods

4.1. Research Model

The proposed model is crucial for illustrating the relationship between renewable energy adoption, green business practices, government policy and incentives, and technology innovation, with the independent variables affecting urban sustainability. The efficiency of the resources acts as the mediating variable and is crucial for linking the independent variables in urban sustainability. This model is inclined toward assessing how the socioeconomic factors of the environment moderated by the resource’s efficiency help in collectively enhancing the level of urban sustainability, followed by providing rich insights about the broader impacts connected with green practices and technology-driven advancement for sustainable urban development (Figure 1).

4.2. Research Design

In this regard, the method of quantitative design research has been focused upon due to being the most effective method for the suitable exploration of the relationship between the measurable variables. The research design uses statistical analysis and objective data evaluation [24]. Data collection from the samples extracted, representing different urban areas engaged in transitioning to renewable energy and green business practices, was considered a cross-sectional survey study. A quantitative design is necessary to analyze the general strength and path of association between mediating variables and dependent and independent variables. With this approach, this study has developed its hypothesis and provided empirical evidence on the combined effect of renewable energy and greener e-business practices in promoting urban sustainability. The structured survey is vital because it allows standardized data collection from a large sample and ensures the reliability and consistency of the measured vital variables [25]. The theoretical framework is validated, and the relationship among other variables proposed is evaluated by using statistical techniques, regression analysis, and structural equation modeling to analyze the survey responses.

4.3. Population and Sampling

The sample for this study includes the stakeholders involved in the adoption of renewable energy and practices of green businesses in urban areas. It consists of the owners of companies followed by urban residents, government officials, and professionals working in the energy, sustainability, and urban planning sectors. It is meant to sample the individuals with relevant knowledge and experience related to this study and ensure the highest relevance of the collected data for the urban sustainability evaluation. The stratified random sampling technique has been used to focus on diversifying samples for demographic groups and professions of backgrounds taken [26]. Stratification is a technique that ensures that the subgroups containing age, gender, level of income, and occupation roles are present in the data and proportionally represented so that the data accurately reflect the target population. This approach is deemed crucial to abolishing the selection biases and affording generalizability to the findings. The sample size of 230 was necessary for reflecting a broad range of perceptions on renewable energy and the practices of green business. This research has followed the Raosoft Calculator to determine the sample size, confirming enough representation for statistical evaluation. The determination of this sample size through the Raosoft Calculator was conducted considering effective population size, 50% response distribution, 95% confidence level, and a 5% margin of error [27]. This study applied a cross-validating survey to mitigate self-assessment bias, confirmed anonymity to minimize social desirability bias, and used statistical adjustments for controlling response bias.

4.4. Data Collection

Due to global digital access and facilities, data are collected through an online survey. We recruit participants via email invites supported by social media platforms and professional networks relevant to sustainability and urban development. The researchers of this study are inclined to collaborate with relevant organizations and institutions to enhance this study’s statistical power by accessing a larger sample. The survey takes 4–6 weeks, long enough to accommodate participant responses and secure a decent response rate. Reminder emails are additionally sent to prompt participation on time and drive the maximal number of collected responses. This study is based on a structured questionnaire as the primary data instrument, whereby the questionnaire is structured to collect quantitative data on each variable in this study using the Likert scale for ease of analysis and standardization [28].

This study presents the questions based on categorizing the independent, dependent, and mediating variables to confirm that the collected data fit the hypotheses and objectives of this research. The questionnaire comprises a few sections. However, to strengthen the methodological rigor this study has followed some questionnaire design processes such as item sourcing from pre-existing relevant literature, pretesting for consistency and clarity, and expert validation through reviewing the subject matter. The first section leans toward collecting data on demographic age, gender, level of education, and occupation. An analysis of the potential effects of demographic factors on the participant perception and behavior related to renewable energy adoption and green business practices can be conducted using these data. The second section includes questions focused on the independent variables: the advantages of green business practices, the policy and incentives of the government, technology innovation, and the adoption rate of renewable energy. These are vital questions to ask of the participant to determine whether the participant has a view on the current rates of adoption for renewable energy, a view on the involvement or lack of green business practices, their knowledge base regarding government policy, and their stance on technology innovation for sustainability.

The third section is inclined toward measuring the mediating variable and resource efficiency by reasons associated with the participant practices and perceptions about the conservation of the resources, followed by waste reduction and the utilization of sustainable resources. Finally, the fourth section focuses on the dependent variable, urban sustainability, with questions designed to capture participants’ opinions on the socioeconomic and environmental impacts of renewable energy and green practices in urban life. The questionnaire is pretested on a smaller sample of individuals with sustainability and urban planning expertise to ensure its relevance, clarity, and reliability. Feedback from this pretest helps inform any required modifications for the questionnaire before the full-scale data collection. The questions are then distributed electronically to ensure a broad reach to collect a highly robust and representative data set. Furthermore, to demonstrate the validity and reliability of the research variables, Cronbach’s alpha was applied in this research.

4.5. Measures

This study measures each variable using structured survey items to ensure comprehensive assessment and accuracy. The renewable energy adoption rate is measured through items that evaluate the extent to which renewable energy sources are implemented and perceived as accessible within the community. Green business practices are assessed by examining respondents’ awareness and support of eco-friendly practices, including sustainable offerings of products and energy-efficient operations. The policy and incentives of the government for sustainability are measured by gauging participants’ perceptions of governmental support for sustainability initiatives, including financial incentives and regulatory measures. Items included in the measure of technology innovation help to measure advancements in sustainable technologies and their perceived impact in helping advance the outcomes on the environment. It was found that resource efficiency is an important mediating variable, as examined by the presence of practices that aim to decrease waste and use resources more effectively. Lastly, items that reflect perceived improvements in environmental quality, social well-being, and economic stability in urban areas form a significant part of urban sustainability assessment.

4.6. Data Analysis

For this study, using the Statistical Package for the Social Sciences (SPSS) [29] including descriptive statistics, reliability analysis, correlation analysis, mediation effect analysis, and effect-size analysis was very important for data analysis concerning testing the proposed hypotheses and examining variables in terms of their relationships. They first introduce cleaning and checking for missing values, outliers, and normality to guarantee data accuracy and usefulness. A summary of the characteristics of the demography sample via descriptive statistics provides details of the responses for each variable. To test for preliminary associations among the independent variables (renewable energy adoption rate, green business practices, government policy and incentives for sustainability, and technology innovation), the mediating variable (resource efficiency), and the dependent variable (urban sustainability), Pearson’s correlation analysis is conducted. Then, we perform a multiple regression analysis to assess the power of each independent variable to predict urban sustainability and a mediation analysis to examine how resource efficiency serves as a mediator in the relationships between the independent variable and urban sustainability. Reliability tests such as Cronbach’s alpha are also used to assess the internal consistency used in the study scales. The results of these analyses are beneficial in generating a perspective on the socioeconomic and environmental impacts of the transition to renewable energy and green business on urban sustainability.

5. Results

The socioeconomic and environmental impacts of renewable energy transition and green e-business on urban sustainability are discussed in this study, and the results are valuable for learning about urban sustainability. In doing so, the results indicate that understanding the relationship between adopting renewable energy, green e-business practices, government policies and technological innovations, and resource efficiency helps determine critical drivers for urban sustainability. These results provide a detailed insight into how sustainability endeavors and innovations contribute to a positive urban environmental, social, and economic outcome.

5.1. Outer Measurement Model

The outer measurement model evaluates the reliability and validity of the constructs used in the study. Figure 2 illustrates the outer model, displaying the factor loadings of the observed variables on their respective latent constructs, as well as the relationships between the construct.

Table 1. Outer loadings.

	Green E-Business Practices (GBPs)	Government Policy and Incentives (GPI)	Renewable Energy Adoption Rate (RAR)	Resource Efficiency (RE)	Technology Innovation (TI)	Urban Sustainability (US)
GBP1	0.977
GBP2	0.983
GBP3	0.969
GBP4	0.967
GPI1		0.976
GPI2		0.976
GPI3		0.966
GPI4		0.972
RAR1			0.891
RAR2			0.918
RAR3			0.879
RE1				0.956
RE2				0.951
RE3				0.863
TI1					0.982
TI2					0.974
TI3					0.980
TI4					0.977
US1						0.938
US2						0.949
US3						0.764

presents the factor loadings for items measuring green e-business practices (GBPs). These were inspired by the design principles of an index, accessibility to the relevant stakeholders, and ability to accommodate each of the five building blocks of change: government policy and incentives (GPI), renewable energy adoption rate (RAR), resource efficiency (RE), technology innovation (TI), and urban sustainability (US). Exhibiting strong item loadings, all items display excellent construct reliability. The internal consistency of the GBP items (GBP1–GBP4) ranges from 0.967 to 0.983. They also possess raw loadings on GPI items (GPI1–GPI4) that are consistently above 0.966−0.976. However, RAR items (RAR1–RAR3) have slightly lower, but still acceptable, (0.879–0.918) values, whereas RE items (RE1–RE3) have a reliability of 0.863–0.956. Loadings of the TI items (TI1–TI4) are near perfection (0.974–0.982). Lastly, US items (US1–US3) have loadings between 0.764 and 0.949, with US3 having the lowest loading, which may be worth further consideration if substantiated in other samples. The results suggest robust measurement properties of all constructs and, thus, their application for subsequent analysis in assessing urban sustainability impacts.

The measurement properties of all constructs in this study are shown in

Table 2. Construct reliability and average variance extracted (AVE).

	Cronbach’s Alpha	Composite Reliability	Average Variance Extracted (AVE)
GBP	0.982	0.987	0.949
GPI	0.981	0.986	0.945
RAR	0.878	0.924	0.803
RE	0.914	0.946	0.855
TI	0.985	0.989	0.957
US	0.861	0.917	0.788

to be strong through the presentation of reliability and validity statistics. Cronbach’s alpha values indicate excellent internal consistency for green e-business practices (GBP: 0.982). The other dimensions were identified, which were government policy and incentives (GPI: 0.981), technology innovation (TI: 0.985), and resource efficiency (RE 0.914). The renewable energy adoption rate (RAR: 0.878) and urban sustainability (US: 0.861) also display sufficient reliability. All constructs have composite reliability values above the recommended threshold of 0.7—from 0.917 (US) to 0.989 (TI)—and the results further support construct reliability. All the constructs exceed the minimum criterion of 0.5 for average variance extracted (AVE), and the highest variance is extracted in the case of TI (0.957) and GBP (0.949). These results align with the convergent validity that the items within each construct adequately measure the underlying concept. These constructs are robustly validated using reliability and validity measures for subsequent analysis to assess socioeconomic and environmental impacts on urban sustainability.

The results of the Fornell–Larcker criterion confirm that the constructs in this study have discriminant validity, meaning that each is unique and measures its intended concept (

Table 3. Discriminant validity: Fornell–Larcker criterion.

	GBP	GPI	RAR	RE	TI	US
GBP	0.974
GPI	0.808	0.972
RAR	0.495	0.529	0.896
RE	0.837	0.883	0.551	0.925
TI	0.853	0.855	0.509	0.960	0.978
US	0.695	0.810	0.676	0.862	0.775	0.888

). The values along the diagonal are the square root of the average variance extracted (AVE) within a construct; they are all greater than the corresponding inter-construct correlations in the respective columns and rows. For instance, green e-business practices (GBPs) have a square-root-of-AVE value of 0.974, which is higher than its correlations with government policy and incentives (GPI: 0.808), technology innovation (TI: 0.853), and others (0.888). Similarly, urban sustainability (US) shows a value of 0.888, exceeding its correlations with other constructs, such as the renewable energy adoption rate (RAR: 0.676). The resource efficiency (RE: 0.862) is found. The results confirm that each construct demonstrates discriminant solid validity and, hence, that each construct is sufficiently distinct to move on to structural equation modeling.

5.2. Inner Structural Model

Figure 3 presents the inner structural model, showing the standardized path coefficients and the statistical significance (p-values) of each relationship in the model.

The results from the hypotheses testing of this study further shed light on the relationships between these variables (

Table 4. Hypotheses testing.

Hypotheses	Std. Beta	Std. Error	t-Value	p-Values	95% CI LL	95% CI UL	Inference
GBP -> RE	−0.009	0.055	0.147	0.883	−0.120	0.098	Not supported
GBP -> US	−0.084	0.118	0.702	0.483	−0.309	0.158	Not supported
GPI -> RE	0.215	0.061	3.453 **	0.001	0.102	0.342	Supported
GPI -> US	0.457	0.126	3.632 **	0.000	0.216	0.711	Supported
RAR -> RE	0.056	0.027	2.153 *	0.031	0.006	0.113	Supported
RAR -> US	0.321	0.066	4.988 **	0.000	0.198	0.455	Supported
RE -> US	1.126	0.237	4.871 **	0.000	0.640	1.582	Supported
TI -> RE	0.756	0.065	11.713 **	0.000	0.632	0.888	Supported
TI -> US	0.294	0.141	2.036 *	0.042	0.044	0.595	Supported
GBP -> RE -> US	−0.011	0.063	0.148	0.882	−0.142	0.111	Not supported
GPI -> RE -> US	0.240	0.079	3.094 **	0.002	0.103	0.415	Supported
RAR -> RE -> US	0.066	0.039	1.736	0.083	0.005	0.156	Not supported
TI -> RE -> US	0.853	0.200	4.376 **	0.000	0.468	1.253	Supported

* Significant at 0.05 level; ** Significant at 0.01 level.

). The results indicated that green e-business practices (GBPs) did not significantly affect resource efficiency (RE) and urban sustainability (US), with significant p-values and low or negative t-values. On the other hand, government policy and incentives (GPI) positively impacted RE (β = 0.215, p < 0.01) and US (β = 0.457, p < 0.01) and verified their importance in achieving sustainability. Both RE (β = 0.056, p < 0.05) and US (β = 0.321, p < 0.01) had a significant direct impact on the renewable energy adoption rate (RAR). Mediation was also found as the US (β = 1.126, p < 0.01) was strongly influenced by resource efficiency. We find that technology innovation (TI) had a significant impact on RE (β = 0.756, p < 0.01) and US (β = 0.294, p < 0.05). It also showed that the importance of GPI and TI in driving urban sustainability through RE is not only realized directly but also through indirect effects.

In

Table 5. R-square and adjusted R-square.

	R-Square	Adjusted R-Square
Resource Efficiency	0.941	0.940
Urban Sustainability	0.848	0.844

, the R-square for a resource efficiency value of 0.941 implies that variations in resource efficiency (dependent variable) are described by the independent variables (94.1%). With this, the adjusted R-square value is 0.940, which accounts for the number of predictors, but that also means minimal overfitting. The model explains 84.8% of the variance in urban sustainability, as indicated by an R-square of 0.848, which also gives a robust fit, as shown by the adjusted R-square of 0.844. The predictive model is also proven to be effective in these results.

As shown in

Table 6. Effect size (f-square).

Hypotheses	f-Square
GBP -> RE	0.000
GBP -> US	0.008
GPI -> RE	0.175
GPI -> US	0.056
RAR -> RE	0.040
RAR -> US	0.287
RE -> US	0.504
TI -> RE	1.803
TI -> US	0.146

, the strongest effect is from TI to RE (f² = 1.803), indicating a substantial influence. Additionally, RE to US demonstrates a large effect size (f² = 0.504), while paths such as RAR to US (f² = 0.287) and GPI to RE (f² = 0.175) show medium effects. Other relationships present small or negligible effect sizes.

This study’s results reveal the essential relationships between the critical variables for urban sustainability. Resource efficiency and urban sustainability are positively impacted by technology innovation, government policy and incentives, and the renewable energy adoption rate, and resource efficiency has a robust mediating effect. These factors are confirmed by testing hypotheses, and the influence of green e-business practices is limited. The R-square values show that the model can explain 94.1% of the variance in resource efficiency and 84.8% of the variance in urban sustainability. Overall, the results stress the critical roles of technological innovation and supporting policies in promoting sustainable urban development through increased resource efficiency and the use of renewable energy.

The results of this study reflected the significant influence of green e-business and renewable energy transition on urban sustainability. However, to offer a deeper discussion of these findings it is important to incorporate relevant theoretical frameworks as well as a broader knowledge of urban sustainability. Moreover, by aligning these results with established theories including the Sustainable Development Theory and the Circular Economy Theory, this study provided a more detailed analysis of the significance and implications of green e-business practices and renewable energy adoption in urban settings.

• Circular Economy Theory

This theory focuses on resource efficiency through recycling, reusing, and reducing materials in consumption and production [30]. In addition, applied to green e-business and renewable energy transition, it suggested the significance of sustainable practices in promoting long-term economic resilience, optimizing energy use, and minimizing waste. Moreover, incorporating this theory highlighted the way circularity increased urban sustainability through proper management of resources.

2.

Sustainable Development Theory

This theory advocated for balancing social equity, environmental protection, and economic growth [31]. However, it aligned with this research by illustrating the way green, e-business, and renewable energy foster environmental sustainability while promoting economic opportunities. Subsequently, this theory reinforced the concept that incorporating green practices confirmed urban resilience, long-term economic prosperity, and improved living standards without compromising the needs of future generations.

6. Discussion

This study’s findings are interpreted in the discussion section and related to the research objectives and theoretical framework introduced earlier. The results are critically evaluated concerning extant literature and further discussed in their wider contribution to urban sustainability. This paper analyses the role of their adoption of renewable energy, green e-business practices, government policies, and technology innovation in increasing resource efficiency and urban sustainability. Moreover, it explains the importance of supported hypotheses and the scarce contribution of green business practices. An understanding of how sustainable urban development’s socioeconomic and environmental dimensions are related to one another results.

6.1. Renewable Energy Adoption Rate and Urban Sustainability

The results suggest a positive and statistically significant association of renewable energy uptake with urban sustainability, as predicted in the research hypothesis. This also stresses the relevance of integrating renewable energy into the more fantastic drive to reduce environmental degradation, cut carbon emissions, and ensure sustainable urban development. Renewable energy offers cities a route to cleaner energy systems that, in turn, benefit the town’s air quality, reduce energy costs, and drive resilience against energy crises [32]. These global priorities on climate change and the priority of policy frameworks to steer the transition to renewable energy resonate in the findings. In addition, increased urban sustainability is indirectly supported by adopting renewable energy, which improves energy efficiency and fosters environmental consciousness in urban populations [33].

6.2. Green Business Practices and Urban Sustainability

This study showed that green business practices did not directly affect resource efficiency or urban sustainability. This outcome is provided by testing the hypothesis that green business practices alone are sufficient drivers of sustainability. First, the inconsistent implementation or limited scope of green initiatives in urban businesses could be a potential explanation when identifying GHG reductions; Pei and Brown argue that the effect of various factors should be considered, including the ratio of consumers to employees, annual revenue, the amount of waste produced, types of products, and storage needs [34]. However, the idea of green e-business has great theoretical potential. Still, its implementation lacks support from technology, has cost barriers, has poor regulations, and has limited access to specific technology [35]. These findings indicate the need for a more integrative perspective of green business practice as an element underpinned by robust policies and public–private partnerships to leverage their contributions to urban sustainability.

6.3. Government Policy and Incentives for Sustainability

The results support the hypothesis that government policy and incentives heavily influence resource efficiency and urban sustainability [36] and show that policies, incentives (e.g., tax rebates, subsidies, grants), and related financial incentives have driven the adoption of sustainable practices. Moreover, carbon taxes, green certifications, and urban planning policies provide a favorable setting for attaining sustainability goals [37]. The results also emphasize the power of maintaining consistent long-term policies and engaging with stakeholders to inspire businesses and individuals to engage actively. This emphasizes to host governments their role as enablers of sustainability by providing policy innovation and institutional frameworks.

6.4. Technology Innovation as a Driver of Urban Sustainability

Technology innovation is a critical factor that positively affects both resource efficiency and urban sustainability [38]. The results validate that growing technology allows cities to take a more innovative, data-driven approach to energy management, waste reduction, and transportation. For example, intelligent grids, IoT-based monitoring systems, and AI-powered analytics help with resource allocation, which helps minimize wastage and further optimize urban infrastructure [39]. Technology innovation is strongly related to resource efficiency, showing its potential transformation for urban sustainability. Technology bridges the gap between theoretical sustainability goals and practical implementation and catalyzes efforts to solve urban challenges and sustain gains in development growth.

6.5. Role of Resource Efficiency

In the cases of government policy, renewable energy adoption, and technology innovation, resource efficiency acted as a significant mediator of the relationship between these critical independent variables and urban sustainability. The finding stresses the need for optimal resource utilization for sustainable urban development. All these achievements related to renewable energy, policy implementation, and technological development are connected by resource efficiency, which enables them to generate actual sustainability outcomes [40]. Thus, efficient energy usage [41] and waste management directly reduce environmental burden and urban livability. Moreover, the finding did not support the mediation effect for green business practices, indicating a mismatch between resource efficiency strategies and business operations.

6.6. Implications for Urban Sustainability

The results indicate that urban sustainability is a multi-dimensional issue involving an interaction of socioeconomic, environmental, and technological elements. Government incentives and technological innovation in renewable energy adoption will help lower urban carbon footprints and enhance quality of life [42]. Green business practices are promising but need even more policy backing and connection with other sustainability efforts [43,44].

The findings conclude that urban challenges can only be addressed by adopting a collaborative approach among governments, businesses, and communities. The results correspond well with the goals of this research, assessing the socioeconomic and environmental impacts of renewable energy transition and green e-business on urban sustainability. This study successfully identifies critical drivers of sustainability by demonstrating the impact of renewable energy, technology, and policy in making these contributions. In addition, the findings show room for improvement, including the need to increase the impact of green business practices and overcome barriers to resource efficiency.

This study sheds light on some essential matters but also has limitations. This might be because of the insignificant impact of green business practices due to their limited scope of adoption in urban settings. Moreover, this study of renewable energy and green business practice is cross-sectional and does not portray the long-term implication on sustainability. Longitudinal approaches could be considered in future research to further this understanding. In addition, some possible limitations to the generalizability of the findings are implications from cultural and regional differences in the adoption of policy and technology. The findings are valuable to policymaking, fuel business decisions, and inform researchers advancing urban sustainability agendas. Renewable energy, government policy, and technology innovation are key players in urban sustainability, which we illustrate as multi-dimensional. Green business practices may have nontrivial challenges in demonstrating practical, direct impact. Yet, it cannot be ignored in its potential, especially when integrated into more enormous sustainability efforts. Resource efficiency plays a mediating role in ensuring that the optimization of resource utilization is indispensable in achieving sustainability goals.

7. Conclusions

This research provides valuable insights into the interplay of various elements concerning urban sustainability. This study demonstrates the essential roles of renewable energy adoption, government policy, green business practices, technological innovation, and resource efficiency, leading to a broad view of sustainable urban development. Besides offering solutions to the research objectives, the results provide directions for further investigation and implementable recommendations. This research found that adopting renewable energy is substantially vital to urban sustainability. It supports the hypothesis that moving to cleaner sources of energy decreases the amount of degradation of the environment and climate change and increases the livability of larger cities. The results are consistent with global sustainability agendas that require the rapid transformation of cities to incorporate renewable energy. In addition to a positive environmental impact, renewable energy systems can provide socioeconomic opportunities, such as job creation and decreased energy costs, making them central elements of sustainable development strategies.

Resource efficiency and urban sustainability were found to be firmly (indeed, critically) dependent upon government policy and incentives. Mostly, the policies were effective in promoting renewable energy adoption and green practices through financial incentives, regulatory frameworks, and awareness campaigns. The outcome underscores the role of stable and forward-looking policies in nurturing an ecosystem that supports sustainable practices. There are numerous safeguards that policymakers must maintain, alongside addressing barriers, if long-term success is to be achieved. A strong positive relationship between technology innovation and the two variables, resource efficiency and urban sustainability, was observed. Shedding light on the benefits of smart cities, just in time for Independence Day, one of the most prominent and significant benefits from the advances in intelligent technologies, namely IoT, AI, and automation, has been the fact that cities can now optimize the use of resources, reduce wastage, and enhance operational efficiency. The findings indicate how technology can be a fundamental and transformative driver, from managing energy to reducing waste, to ensure that future cities are both sustainable and affordable. Achieving sustainability goals more efficiently, economically, and competently is possible when cities adopt technological innovation.

A mediating factor between these independent variables was identified as resource efficiency, and resource efficiency was shown to correlate with urban sustainability. The efficient use of resources also leads to less environmental impacts and better economic outputs in urban development. Although green business practices did not lead to resource efficiency or sustainability in this study, there is still potential. Their impact on sustainability can be unlocked through enhanced integration with policies and technological solutions. Finally, this research successfully reaches its objectives by assessing the socioeconomic and environmental effects of renewable energy and green business practices. Therefore, this study presents a robust framework for stakeholders to use when designing urban sustainability strategies by identifying the factors contributing to urban sustainability.

Moreover, it illuminates the regions where improvements need to be made, e.g., where there is a lack of broader use of green business practices and where there are barriers to resource efficiency. By integrating Circular Economy Theory and Sustainable Development Theory, this research contributes to the theoretical understanding at the metropolitan level. In addition to existing frameworks, resource efficiency is identified as a mediating factor: the more resource-efficient processes are, the greater the conversion of sustainable inputs into their corresponding outcomes. This study provides practical insights for policymakers, businesses, and urban planners. The findings present a roadmap for creating sustainable urban ecosystems, from promoting renewable energy adoption to encouraging technological innovation. This study, however, has its limitations. A cross-sectional design cannot detect long-term trends and impacts. The insignificant effect of green business practices in the study context can be due to there not being enough scope or challenges of implementation. Moreover, the generalizability of the findings depends on cultural and regional differences in policy and technological adoption. Of course, further studies should address such limitations to increase understanding.

To overcome the barriers, this study needs to incorporate different objective data sources including financial reports and energy consumption records to validate results. Additionally, expanding this research to multiple cities with different policy settings could increase its applicability. Furthermore, adopting longitudinal studies instead of cross-sectional studies can enhance the acceptance of this study more as it can track green e-business growth and renewable energy adoption in over time. Therefore, it would offer stronger casual insights.

Sustainable development in an urban setting is a multi-dimensional complex area requiring development across several socioeconomic, environmental, and technological domains. The results of this research highlight the potential of renewable energy, government policies, and technology innovation to lead sustainable urban development. Moreover, it shows how resource efficiency mediates these efforts to tangible sustainability outcomes. The barriers remain, but the findings provide encouraging news for urban areas as the epicenters of sustainable economic development. Adopting the recommended strategies by city stakeholders will lead to building environmentally resilient, socially equitable, and economically vibrant cities.