Search Results (44)

This study investigates the impact of renewable energy, environmental technology, foreign direct investment (FDI), and globalization on green economic growth in South Africa within the framework of the country’s National Development Plan (NDP) Vision 2030, covering the period from 1997 to 2024. Using annual data and applying advanced panel techniques, including the CS-ARDL model supported by AMG and CCEMG estimators, the analysis captures both long-run and short-run dynamics. The quantitative findings indicate that renewable energy exerts a strong positive influence on green economic growth, with long-run and short-run coefficients of 0.318 and 0.142 (both significant at the 1% level). Environmental technology also shows a positive and significant impact, with coefficients of 0.274 in the long run (1% level) and 0.105 in the short run (10% level). FDI contributes positively to green growth, as reflected in the long-run and short-run coefficients of 0.186 (at the 1% level) and 0.083 (at the 10% level). In contrast, globalization exhibits a weak and slightly negative long-run effect, with a coefficient of –0.097 (significant at the 10% level). The significant negative error-correction term confirms a stable long-run adjustment process. These findings imply that renewable energy expansion, technological innovation, and environmentally responsible FDI are crucial pillars of South Africa’s sustainable growth strategy. Based on these results, the study recommends intensifying efforts to promote renewable energy investment, strengthen research and development in environmental technologies, and attract green-oriented FDI through clear regulatory incentives. In addition, trade and globalization policies should be redesigned to ensure ecological balance and compliance with sustainability standards. Overall, the study offers practical policy insights to support South Africa’s transition toward a low-carbon, resilient economy. Full article

This study investigates the long-run relationship between green finance and the ecological footprint in 13 countries with the highest levels of green financial development, while also examining the roles of green growth, economic growth, financial globalization, and capital formation. Using panel data from 1994 to 2020, the analysis applies advanced econometric techniques, including the Augmented Mean Group (AMG), Fully Modified Ordinary Least Squares (FMOLS), and Dynamic Ordinary Least Squares (DOLS) estimators to identify long-term effects. In addition, the Dumitrescu–Hurlin panel bootstrap causality test is used to explore the direction of relationships among variables. The results confirm the existence of cointegration among all variables. Green finance and green growth are found to reduce the ecological footprint, indicating their effectiveness in mitigating environmental degradation. In contrast, economic growth, financial globalization, and capital formation contribute positively to the ecological footprint, suggesting a link to increased environmental pressure. The causality analysis reveals a bidirectional relationship between green growth and ecological footprint, while green finance, economic growth, financial globalization, and capital are found to be causal factors of ecological footprint. The findings highlight the importance of promoting green finance and sustainable growth strategies while ensuring that financial and capital flows support environmental objectives. Full article

Environmental fines compel corporations to strengthen compliance, adopt sustainable practices, and integrate eco-innovation. This enhances legitimacy, reduces risks, and supports long-term sustainable performance across industries. Despite this importance, its effect on corporate sustainability performance (CSP) and the moderating roles of corporate governance quality, firm size, and institutional ownership remain underexplored, creating significant knowledge gaps. This study applied stakeholder and institutional theory to address these gaps, using data from 187 non-financial firms listed on the Frankfurt Stock Exchange between 2006 and 2024, obtained from Thomson Reuters Eikon DataStream. Three advanced estimation models—augmented mean group (AMG), common correlated effects mean group (CCEMG), and generalized method of moments (GMM)—were employed. Findings indicate that environmental fines have a positive and significant effect on CSP. Moreover, the moderating effects of governance quality, firm size, and institutional ownership also positively and significantly influence CSP. Strong governance enables firms to transform fines into strategic opportunities, driving sustainability investments, improving risk management, and fostering accountability that aligns operations with regulatory and stakeholder expectations. Full article

The relationship between renewable (REN) and non-renewable (NREN) energy and economic growth plays a fundamental role in sustainable development. The number of studies on this relationship in countries with the highest REN consumption is limited. This study analyzes the effects of REN and NREN on economic growth between 1970 and 2023, focusing on the ten leading countries in REN consumption. These countries constitute an appropriate sample for analysis, not only due to their high REN capacity but also because they represent diverse levels of economic development. For this purpose, second-generation panel data methods were employed to investigate the long-run effects, taking into account cross-sectional dependence and heterogeneity in the dataset. The CADF unit root test developed by Pesaran indicated that all variables are stationary at their first differences. The Westerlund panel cointegration test confirmed the existence of a long-run relationship among the variables. Long-run coefficients were estimated using the Common Correlated Effects Mean Group (CCE) approach developed by Pesaran and the Augmented Mean Group (AMG) estimators proposed by Bond & Eberhardt and Eberhardt & Teal. The results revealed that renewable energy consumption has a positive and significant effect on economic growth, while fossil fuel consumption continues to have a favorable effect on growth. However, the negative and significant effect of primary renewable energy production suggests that technological deficiencies and efficiency problems in current production structures may play a role. Overall, this study highlights the necessity of aligning energy policies with both environmental sustainability and economic growth objectives. Full article

Many companies engage in earnings manipulation that obscures their actual financial condition and sustainability efforts, undermining the credibility of financial reports and eroding stakeholder trust. To address these concerns, the United Kingdom has strictly adhered to International Financial Reporting Standards (IFRS), enhancing financial transparency and reducing the risk of manipulation. This study applies agency theory to examine the effects of earnings management and IFRS adoption on corporate sustainability performance, while also assessing the moderating roles of institutional ownership and board independence. Data were drawn from 248 companies listed on the London Stock Exchange between 2002 and 2024, using purposive sampling and sourced from Thomson Reuters Eikon DataStream. Advanced estimation techniques, specifically the Augmented Mean Group (AMG) and fixed effects models with Driscoll-Kraay standard errors, were employed to address cross-sectional dependence and slope heterogeneity. The results indicate that earnings management, as measured by discretionary accruals, has a significant negative impact on sustainability performance. In contrast, the adoption of IFRS has a positive and significant influence on sustainability outcomes. Additionally, institutional ownership and board independence significantly moderate the adverse effects of earnings management, leading to improved sustainability performance. The findings suggest that managers should enhance the clarity and accountability of financial reporting by implementing robust internal systems aligned with IFRS, conducting regular compliance audits, and training finance staff on current disclosure standards. Full article

The rapid economic growth in major coal-consuming countries has often come at the cost of environmental quality and social well-being. This study is urgently needed to provide empirical evidence on how such growth impacts sustainable development, helping policymakers balance economic progress with environmental protection and social welfare in an era of increasing climate concerns. Despite growing attention on sustainability, few studies have examined how key economic-environmental transformation drivers, such as coal consumption, financial development, globalization, urbanization, and economic growth, affect social sustainability. This study addresses this gap by analyzing the impact of these drivers on social sustainability in the world’s leading coal-consuming countries, as classified by Global Firepower. Using data from ten major coal-consuming nations between 1991 and 2022, sourced from the International Monetary Fund (IMF), KOF Swiss Economic Institute, the BP Statistical Review of World Energy, the World Bank’s World Development Indicators (WDIs), and the United Nations Development Programme (UNDP), the study applies advanced estimation techniques, including the Augmented Mean Group (AMG) and Feasible Generalized Least Squares (FGLS), to address cross-sectional dependence and slope heterogeneity. The results indicate that coal consumption has a negative and significant effect on social sustainability. In contrast, financial development, globalization, urbanization, and economic growth all show positive and significant effects. These findings highlight the urgent need for deliberate policy reforms to support a socially inclusive energy transition. Policymakers in major coal-consuming countries should invest in clean energy, fund worker retraining and community health, promote green innovation, and encourage private sector and stakeholder collaboration for a just, sustainable transition. Such measures are vital for coal-dependent countries to balance economic progress with social well-being. This study is the first to quantify social sustainability using the HDI, addressing a gap in the literature concerning the relationship between coal consumption and social development, thereby providing a quantitative basis for formulating policies that balance equity and decarbonization. Full article

This study examines the contributions of renewable energy transition (RET) and environmental innovation (EI) to environmental performance in G7 countries from 2003 to 2021, with a focus on the transmission channels of green finance and environmental governance. Using the Augmented Mean Group (AMG) estimator and confirming robustness through the Dynamic Common Correlated Effects Mean Group (DCCE-MG) method, the study explores both direct and indirect effects of RET and EI on two key environmental indicators: the Environmental Performance Index and the Load Capacity Factor. The results reveal that both RET and EI have a significant impact on environmental performance. Moreover, green finance and environmental governance serve as crucial channels through which RET and EI exert their influence. These findings underscore the importance of developing effective financial instruments and robust regulatory frameworks to translate energy and innovation policies into tangible environmental benefits. By highlighting the interplay between technological advancement, financial capacity, and institutional quality, this study provides novel insights into the environmental policy landscape of advanced economies and offers guidance for designing integrated strategies to achieve long-term sustainability goals. Full article

Many environmental risks, such as global warming and depletion of natural resources, force governments to achieve economic growth and financial development without causing environmental degradation. The dependency of countries’ dependence on fossil fuels also causes energy supply security problems due to the associated risks at regional and global levels. These reasons lead countries to diversify and increase their renewable energy investments. In this context, this study focuses on the most attractive countries in terms of renewable energy investments and analyzes the relationships between renewable energy consumption (REC), carbon dioxide emissions (CO₂), economic growth (EGRO), financial development (FD), and energy dependence (EDP) using the panel regression method. This research uses data from 38 countries between 1991 and 2021 within the scope of the “Renewable Energy Attractiveness Index” (RECAI) created by Ernst & Young. As a result of the heterogeneity and cross-sectional dependency tests, the data were analyzed using the Westerlund cointegration test, the Augmented Mean Group (AMG) estimator, and the Emirmahmutoglu and Kose causality test. The findings from this study show that FD and EGRO have a positive and significant effect on REC, whereas they have a negative and significant relationship with CO₂ emissions. Findings from the causality test show that FD has an impact on both CO₂ and EGRO. In addition, within the scope of this study, a causality was determined between EDP and REC, and a mutual relationship between energy demand and CO₂ was revealed. In light of these findings, governments should increase their investments in renewable energy to ensure sustainable economic growth and energy supply security while minimizing environmental degradation. Full article

This study aims to evaluate how key financial, educational, technological, and institutional drivers shape resource efficiency (RCE), a critical pillar of sustainable development—across major economies. Enhancing RCE is vital for ensuring long-term ecological and economic stability while meeting global sustainability targets. Using panel data from 2000 to 2022 for G20 countries, this research examines the dynamic effects of natural resources (NRSs), educational quality (EDQ), financial inclusion (FIN), green innovation (GRI), and economic complexity (ECC) on RCE. The Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model is applied to capture both short- and long-term relationships and is validated by robustness checks using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators. The results show that EDQ and FIN exert a negative influence on RCE, suggesting that governance inefficiencies occur when aligning education systems and financial mechanisms with sustainability goals. In contrast, NRS, GRI, and ECC significantly enhance RCE, underscoring the value of resource stewardship, innovation-driven transitions, and complex economic structures in promoting efficiency. These findings have governance implications, emphasizing the need for institutional reforms that integrate sustainability into the education and financial sectors while supporting green innovation and economic diversification. Policymakers in G20 economies are urged to implement coherent strategies that redirect educational and financial frameworks toward inclusive, resilient, and resource-efficient development pathways, thereby advancing the United Nations Sustainable Development Goals (SDGs). Full article

The transition to sustainable, innovation-driven economies has become a global imperative, particularly for resource-dependent regions like the Middle East, where environmental challenges, fossil fuel reliance, and economic diversification pressures intersect. In this context, green innovation plays a pivotal role in mitigating environmental degradation while supporting long-term economic growth. This study examines the short-term and long-term drivers of green innovation across 13 Middle Eastern countries from 1990 to 2023, with a focus on environmental governance, environmental pollution, economic growth, and natural resource abundance. Using a balanced panel dataset, this study applies Frees, Friedman, and Pesaran CSD tests to address cross-sectional dependency and second-generation unit root tests for data stationarity. Both first- and second-generation cointegration tests confirm long-run relationships among variables. The empirical analysis employs the cross-sectional autoregressive distributed lag (CS-ARDL) model, alongside Pooled Mean Group (PMG-ARDL), Average Mean Group (AMG), and Common Correlated Effects CCEMG estimators, ensuring robustness. The findings indicate that, in the long term, environmental governance, economic growth, population size, and natural resource abundance significantly promote green innovation, with respective coefficients of 0.3, 0.01, 0.02, and 0.4. Conversely, human development and environmental pollution exert a negative influence on green innovation, particularly over the long term. These results suggest that, while economic and governance factors drive innovation, human capital development may prioritize immediate growth over sustainability, and pollution may hinder long-term innovation. Enhancing environmental governance, accelerating renewables, using strategic resource revenue for green projects, integrating green growth, and regional collaboration can position Middle Eastern economies as green innovation leaders. Full article

This study investigates the environmental effects of agricultural trade, renewable energy use, and economic growth in a panel of 14 selected countries for the period 2000–2021. Per capita CO₂ emissions are modeled as the dependent variable using a second-generation panel data method, the Augmented Mean Group (AMG) estimator, which accounts for cross-sectional dependence and slope heterogeneity. The analysis reveals that the share of renewable energy in total energy consumption significantly reduces carbon emissions, emphasizing the role of green energy policies in environmental improvement. In contrast, economic growth is found to increase emissions, indicating the validity of only the initial phase of the Environmental Kuznets Curve (EKC) hypothesis. Additionally, agricultural imports—and in certain cases, exports—exert upward pressure on emissions, likely due to logistics and production-related externalities embedded in the trade process. Group-specific results highlight distinct dynamics across countries: while renewable energy adoption plays a stronger role in emission mitigation in developing economies, trade composition and production technology drive environmental outcomes in developed ones. The findings underscore the need to redesign trade and energy strategies with explicit consideration of environmental externalities to align with long-term sustainability objectives. Full article

The global economy faces a critical challenge: balancing economic survival through natural resource utilization with the imperative of long-term environmental sustainability. Green innovation presents a viable solution, yet its effectiveness hinges on establishing well-structured legislative frameworks. This study, covering the period 1996 to 2022, examines the moderating effect of green innovation on the relationship between natural resource rents and ecological footprint while also considering the roles of globalization, financial development, and energy transition in the ten most resource-abundant countries. Utilizing the augmented mean group (AMG) estimator, the findings indicate that natural resource rents significantly contribute to ecological footprint, reinforcing concerns about resource-driven environmental degradation. However, green innovation mitigates these adverse effects, promoting sustainable resource management in alignment with SDG 12 (Responsible Consumption and Production). Additionally, renewable energy and globalization positively influence environmental conditions, reinforcing the drive toward clean and affordable energy (SDG7), while economic growth, financial development, and non-renewable energy exacerbate environmental harm. Furthermore, foreign direct investment (FDI) increases ecological footprint, reinforcing the Pollution Haven Hypothesis for resource-rich economies. Rigorous robustness checks using CCEMG, FMOLS, and DOLS methodologies, along with country-specific analyses, affirm the empirical validity of these results. In light of these conclusions, the paper advocates for legislative reforms to enhance sustainability and optimize resource utilization, ensuring a balanced approach to economic development and environmental preservation. Full article

In the modern era, CO₂ emissions is a popular and significant study topic. Environmental sustainability is adversely affected by CO₂ emissions, which have become the main cause of climate change. Using panel data analysis, this study investigated the connections between CO₂ emissions and economic development, capital accumulation, and the use of renewable energy. Long-term connections between variables were examined using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, taking into account heterogeneity and cross-sectional dependence. Additionally, the Dumitrescu–Hurlin Panel Granger Causality Test was used to assess dynamic interactions between variables. Although CH₄ emissions increase CO₂ emissions, the effects of economic growth and capital accumulation are not statistically significant, as determined using the AMG and CCEMG. Although the use of renewable energy was shown to have the potential to lower CO₂ emissions, this impact was not statistically significant. The results of the dynamic panel demonstrate that CO₂ emissions increase with capital accumulation. Although methane (CH₄) emissions significantly impact CO₂ emissions, economic growth, capital accumulation, and renewable energy use do not show statistically significant effects, highlighting the varying influences of these factors across nations. The findings of this study emphasize the need to integrate environmental regulations into capital investment strategies and adopt country-specific policies to effectively reduce CO₂ emissions. They also underscore the need to customize green legislation to the specific conditions of each nation while simultaneously advocating for further expenditures in clean energy and the formulation of policies to supplant fossil fuels. Full article

Sustainable transitions are essential for balancing economic growth with environmental preservation. Ecological sustainability, measured through environmental footprints (ECV), serves as a strategic pathway for mitigating environmental degradation and fostering long-term ecological resilience. This study examines the role of industrialization (IDS), economic growth (EGR), human capital (HDV), green technologies (GNN), and renewable energy consumption (RNC) in shaping ECV across G5 countries from 2000 to 2022. Employing the cross-sectionally augmented autoregressive distributed lag (CS-ARDL) estimator, alongside the augmented mean group (AMG) and common correlated effects mean group (CCEMG) for robustness, this study unveils a positive association between EGR and ECV, indicating its adverse impact on environmental sustainability. However, IDS, HDV, GNN, and RNC exhibit negative relationships with ECV, suggesting their contributions to improving ecological sustainability. These findings highlight the need for integrated policies that promote sustainable industrial practices, enhance technological advancements, and optimize human capital to counterbalance the environmental pressures of economic growth. Aligning economic expansion with ecological sustainability remains crucial for achieving long-term environmental balance in G5 nations. Full article

Fossil fuels are among the most crucial factors underlying global environment impairment through CO₂ emissions. In addition to this, the globalized world has witnessed significant price volatility, instability and disruptions in the supply of fossil fuels. Therefore, renewable energy transition (RET) has become a mandatory option for countries to tackle these environmental, economic, and energy insecurity problems in energy markets dominated by fossil fuels. But the RET process has remarkably slowed down in recent years due to increasing economic volatility, financial obstacles, geopolitical risks, and bottlenecks in the development of low-carbon technologies. In this regard, this study investigates the effect of market structure proxied by economic freedom and indicators of financial development, together with real GDP per capita and education, on the utilization of renewable energy in post-transition EU member states across the 2000–2021 duration by utilizing causality and cointegration tests. The outcomes of the causality analysis reveal a feedback relationship among renewable energy use, economic freedom, indicators of financial development, and real GDP per capita but a unilateral causality between education and renewable energy use. On the other hand, the outcomes of AMG estimation reveal a positive effect of economic freedom, real GDP per capita, and education on the utilization of renewable energy in some countries but a negative effect of financial institutions’ development on renewable energy use and mixed results on the effect of financial markets’ development regarding renewable energy use. Our results indicate that education is a significant instrument to make progress in renewable energy use via multiple channels, but governments should incentivize the financial system to support the RET process by favorable lending and sustainable finance instruments like green bonds or sustainability-linked loans. Full article