Search Results (60)

This study examines the impact of personal remittances on housing prices in European Union (EU) countries, while also accounting for a broader set of macroeconomic, demographic, and structural variables. Using annual data for 27 EU countries from 2007 to 2022, we employ a comprehensive panel econometric approach, including cross-sectional dependence tests, second-generation unit root tests, pooled mean group–autoregressive distributed lag (PMG-ARDL) estimation, and panel causality tests, to capture both short- and long-term dynamics. Our findings confirm that remittances significantly and positively influence long-term housing price levels, underscoring their relevance as a demand-side driver. Other key variables such as net migration, GDP, travel credit to GDP, economic freedom, and real effective exchange rates also contribute to housing price movements, while supply-side indicators, including production in construction and building permits, exert moderating effects. Moreover, real interest rates are shown to have a significant long-term negative effect on property prices. The analysis reveals key causal links from remittances, FDI, and net migration to housing prices, highlighting their structural and predictive roles. Bidirectional causality between economic freedom, housing output, and prices indicates reinforcing feedback effects. These findings position remittances as both a development tool and a key indicator of real estate dynamics. The study highlights complex interactions between international financial flows, demographic pressures, and domestic economic conditions and the need for policymakers to consider remittances and migrant investments in real estate strategies. These findings offer important implications for policymakers seeking to balance housing affordability, investment, and economic resilience in the EU context and key insights into the complexity of economic factors and real estate prices. Importantly, the analysis identifies several causal relationships, notably from remittances, FDI, and net migration toward housing prices, underscoring their predictive and structural importance. Bidirectional causality between economic freedom and house prices, as well as between housing output and pricing, reflects feedback mechanisms that further reinforce market dynamics. These results position remittances not only as a developmental instrument but also as a key signal for real estate market performance in recipient economies. Full article

The transition toward a circular water economy addresses accelerating water scarcity and pollution. A PRISMA-2020 systematic review of 50 peer-reviewed articles (January 2018–April 2024) mapped current technologies and management strategies, seeking patterns, barriers, and critical bottlenecks. Bibliometric analysis revealed the following three dominant patterns: (i) rapid diffusion of membrane bioreactors, constructed wetlands, and advanced oxidation processes; (ii) research geographically concentrated in Asia and the European Union; (iii) industry’s marked preference for by-product valorization. Key barriers—high energy costs, fragmented regulatory frameworks, and low social acceptance—converge as critical constraints during scale-up. The following three practical action lines emerge: (1) adopt progressive tariffs and targeted tax credits that internalize environmental externalities; (2) harmonize water-reuse regulations with comparable circularity metrics; (3) create multi-actor platforms that co-design projects, boosting local legitimacy. These findings provide policymakers and water-sector practitioners with a clear roadmap for accelerating Sustainable Development Goals 6, 9, and 12 through circular, inclusive, low-carbon water systems. Full article

Reducing greenhouse gas (GHG) emissions depends mostly on urban transport electrification. However, the role of trolleybus systems in this process is still under discussion. The objective of this study was to analyze the viability of trolleybus buses in relation to diesel buses regarding environmental and economic aspects. The research was conducted in Vilnius, Lithuania using an extended CO₂ emission methodology incorporating physicochemical fuel properties and real-world operational data that allowed us to estimate CO₂ emissions and economic impacts. The findings indicate that the Vilnius trolleybus system prevents 84,996.32 kg of CO₂ emissions monthly compared to diesel buses (gross avoided emissions). After accounting for emissions from electricity generation (based on Lithuania’s 2023 grid mix), the net avoided emissions are approximately 61,569 kg of CO₂ per month, equivalent to EUR 4284 in carbon credits. The system also significantly reduces local air pollutants. Moreover, the new In-Motion Charging (IMC) technology improves system flexibility by decreasing dependence on overhead wires and maintaining low emission levels. IMC trolleybuses represent a cost-efficient option compared to battery-electric buses (BEBs) and hydrogen fuel cell buses (FCEBs). Our findings support the European Union’s decarbonization goals and provide essential insights for policymakers considering public transportation electrification efforts. Full article

The accounting methodology for renewable energy in the European Union’s (EU) renewable heating and cooling targets is often treated as a mere technical detail, yet it has profound implications for the effectiveness of climate policies. This paper highlights a critical misalignment within the Renewable Energy Directive (RED), which inadvertently disincentivises the deployment of more efficient heating technologies. By accounting for the energy harnessed to produce the useful heat, rather than the useful heat itself, the current metrics disproportionately credit the least efficient heating systems with generating the most renewable heat. An electric heat pump with a seasonal performance factor of 3 producing 100 units of renewable heat gets credited with 100 units of heat, despite using only 33 units of input energy, whereas a wood fireplace with an efficiency of 50% gets credited with 200 units of heat. The less efficient the device, the more renewable credits it receives for producing the same amount of useful heat. This misalignment undermines decarbonisation efforts by over-crediting inefficient technologies while failing to fully recognise high-efficiency solutions like heat pumps. This paper proposes revising the RED to account for useful energy output, ensuring a more accurate reflection of technology contributions. We also propose increasing the binding heating and cooling targets of 0.8 pp/year and 1.1 pp/year so that they reflect the needed contribution of the heating and cooling sector to reach the binding headline target of 42.5% by 2030. This shift would incentivise efficiency, better align with EU climate goals, and support the transition to a low-carbon heating and cooling sector in line with the 2030 emissions reduction target. Full article

This study assessed the techno-economic and environmental feasibility of a grid-connected PV system on a university building, with a focus on potential revenue from carbon credit sales. The analysis assumes a regulated CO₂ emissions market in Ecuador and references carbon credit prices from the European Union, New Zealand, China, and the Republic of Korea. Seven PV system configurations, varying in size and capacity, were modeled using Homer Pro and assessed for their techno-economic feasibility and environmental performance. The results indicated that the 166 kWp system was the most promising, supplying approximately 74% of the building’s electricity demand. Thus, this system was selected as the baseline for evaluating potential revenues from carbon credit sales in international markets, based on average carbon prices in 2022. The selected markets generated annual revenues of USD 4410.68, USD 2587.55, USD 446.34, and USD 958.37, respectively. While these additional revenues improved the Net Present Value (NPV) of the 166 kWp system, the overall NPV remained negative due to the high initial investment costs. Full article

This study examines racial and ethnic disparities in mortgage-lending outcomes across different lender types—large banks, fintech lenders, non-bank lenders, small banks, and credit unions—using Home Mortgage Disclosure Act (HMDA) data from 2018 to 2023. By analyzing approval rates, rate spreads, and origination charges, we evaluate how borrower outcomes vary by race and ethnicity, controlling for loan characteristics, borrower attributes, and regional factors. Our findings reveal that Black and Hispanic borrowers consistently face less favorable terms than White borrowers, with disparities differing by lender type. Large banks, operating under stringent regulatory oversight, demonstrate relatively equitable pricing but impose higher loan denial rates on minorities. Credit unions, despite offering the lowest rate spreads overall, penalize minority borrowers more severely in pricing than other lender types. Fintech lenders, while charging higher-rate spreads and fees, show smaller credit access disparities for minority borrowers. Non-bank and small banks display mixed results, with inconsistencies in their treatment of minorities across pricing and credit access. These results highlight that neither technological innovations nor alternative lending models alone suffice to eliminate systemic inequities. Achieving equitable mortgage lending requires enhanced regulatory oversight, greater transparency in algorithmic decision-making, and stricter enforcement of fair lending practices. Full article

This study examines the impact of financial development and quality growth on environmental sustainability in European Union (EU) countries, making a significant contribution to the existing literature by introducing a composite index for environmental sustainability and emphasizing quality growth as a more inclusive alternative to traditional economic growth indicators. Unlike conventional studies, which often measure environmental sustainability using single indicators, this research introduces a composite index that includes both environmental damage (e.g., carbon emissions) and protective factors (e.g., forest area, renewable energy consumption). This innovative approach provides a more holistic assessment of environmental sustainability, distinguishing this study from existing research. The results emphasize the role of a robust financial system in promoting environmental sustainability, as each unit increase in financial development is positively correlated with the environmental sustainability ratio, encouraging investments and projects that prioritize environmental goals. In addition, the study shows that quality growth, which takes into account social welfare and resource efficiency in addition to economic expansion, is crucial for promoting sustainability. By focusing on quality growth, this study shifts the paradigm from mere quantitative economic expansion to a more comprehensive understanding of growth that integrates social and environmental dimensions. This nuanced approach contrasts with traditional models that focus on quantitative economic growth, highlighting that both quality growth and financial development are critical to supporting long-term environmental goals. This research provides actionable insights for policymakers by emphasizing the need for financial reforms, such as green bond markets and sustainable credit mechanisms, to support sustainable development. Full article

Geographical indications (GIs), protected by the European Union with the collective marks of PDO (protected designation of origin), PGI (protected geographical indication), and TSG (traditional specialty guaranteed), play an important role in the social and economic system. They not only guarantee food needs, but promote correct consumer information, protect local food, and play a role in the environmental and social sustainability of rural areas. In Italy, Parmigiano Reggiano (PR-RE) PDO cheese is ranked second in foods with the GI protection mark by turnover. This research aims to assess the financial sustainability of the firms registered in the PR-RE PDO consortium using financial statement (FINSTAT) analysis. Financial ratios (FR) and the EM-Score were applied to assess firms’ performance, financial risk, and credit score. The analysis distinguished firms by legal form, cooperative and non-cooperative, and altitude range—plain hill and mountain. The main findings of the research were as follows: (1) a better performance of lowland non-cooperative firms and lower financial risk, (2) a longer duration of the inventory cycle of cooperative firms, and (3) a greater financial risk in mountain cooperatives. The results provide indications for improving firms’ performance and for designing financial instruments for the sector. To our knowledge, this is the first research to carry out an analysis of all the available FINSTATs of firms in the PR-RE PDO sector. Full article

Credit unions in Latin America play an important role in the financial system, making a significant contribution to the achievement of the Sustainable Development Goals (SDGs) through their focus on financial inclusion, sustainability, and economic resilience. Assessing the social responsibility of these cooperatives ensures ethical, sustainable operations that benefit the population. Unlike traditional financial institutions, cooperatives are based on principles focused on mutual benefit, democratic participation, and responsibility toward their members and the community. This critical literature review, conducted through scientific databases, synthesizes findings on social responsibility in credit unions. The financial system is relevant for global economic stability and growth, comprising institutions like credit unions that facilitate capital flow. It operates through financial instruments, intermediaries, and markets, ensuring efficient resource allocation and risk management. Effective financial management involves planning, organizing, directing, and controlling resources to achieve stability and growth, integrating social responsibility. Credit unions in Latin America highlight cooperative principles, emphasizing member service, community development, and sustainable practices over profit maximization, thereby fostering economic inclusion and ethical business practices. In conclusion, credit unions provide affordable financial services while promoting values of solidarity and equity. However, as entities directly linked to communities, it is essential for them to monitor their actions in terms of social responsibility. This is important to measure and ensure their impact on society and its context. Finally, future research should focus on balancing economic viability with social responsibility, exploring innovative models, governance frameworks, and technological impacts. Full article

Effective forest degradation monitoring is crucial for devising targeted interventions to curb carbon emissions and safeguard ecosystem services. In Ethiopia, where coffee farming is intricately tied to forest health, understanding and managing degradation are essential for sustaining both agricultural productivity and environmental integrity. This study rigorously assesses the impact of different management interventions on forest degradation in Ethiopian coffee plots, with a specific focus on quantifying carbon emissions. By integrating field data with freely available high-resolution Sentinel-2 imagery and employing a neural network model to predict NDVIs, we achieved a high level of accuracy, as demonstrated by a strong correlation between a predicted greenness indicator (NDVI) and field biomass data (R² = 0.97), while also establishing a robust framework for monitoring forest degradation. Our degradation mapping from 2021 to 2023 demonstrated a notable reduction in degraded areas within managed coffee plots, although baseline plots exhibited a more significant reduction in later years. These findings underscore the transformative potential of combining machine learning with remote sensing to effectively monitor and mitigate forest degradation, enhancing the precision of carbon accounting and promoting sustainable land management practices. This approach holds significant potential for use in company-internal sustainability audits, compliance with the upcoming European Union Deforestation Regulation (EUDR), and the generation of carbon credits for both insetting and offsetting carbon emissions. Full article

The main objective of the paper is to assess the relationship between firms’ financial resilience and firms’ strategic sustainable development vulnerabilities, in the context of implications of the COVID-19 pandemic on firms’ business environment. Background: The last decade has emphasized an increase in business models’ uncertainty and risk exposure. The COVID-19 pandemic has highlighted the awareness in this direction, especially in a changing context, that looks more and more for corporate sector operations’ orientation towards sustainable development. The question we would address in this paper is how the nexus between corporate sustainability performance and corporate financial resilience is affected by management decision through process improvements, product quality assurance, or managers’ preference to improve corporate financials by earnings management practice instead, especially in the context of specific corporate financial risk management. Methods: The data are extracted from the Refinitiv database. The sample is limited to 275 European Union listed firms, selected based on data availability. The empirical analysis consists of an OLS multiple regression. For robustness purposes, a quantile regression model is estimated as well. Results: The approach considers implications of the pandemic on firms’ business environment and earnings management accounting based policies and strategies as well. The result suggests that alignment to sustainability frameworks lead to the deterioration of firms’ financial resilience. Similar results show the negative impact of firms’ financial vulnerability (credit default risk) on firms’ financial resilience. Instead, the risk of bankruptcy, firms’ liquidity, or high product quality and business process improvement determine the positive impact on firms’ financial resilience. Conclusions: The study highlights several insights both for management and policy makers. First, the results underline the relevance of management’s choice for earnings management on ensuring firms’ financial resilience, which ask for better corporate governance and high-quality and effective institutional regulatory and enforcement mechanisms. Second, the paper brings evidence on the impact of the COVID-19 pandemic on firms’ financial sustainable development. Third, the study emphasizes the importance of the efforts of corporate process improvements and high-quality products on generating value-add, by looking on the relevance of those drivers on the level of corporate economic value-add, a measure that limits the impact of discretionary management accrual-based accounting choices on our discussion. Full article

The EU faces two economic challenges: managing non-performing exposures (NPEs) and climate change. This paper analyzes the relationship between the NPEs of domestic banking groups and climate risks, including macroeconomic variables such as the GDP growth rate, unemployment rate (UnEmp), and the voice and accountability percentile (VCA) and the interaction variable between the GHG and the Rule of Law Percentile (GhGRLP). The estimation uses ordinary least squares with time-fixed and individual effects. Physical and transition risks significantly affect NPEs, showing that both adverse climate events and the transition to a low-carbon economy worsen the financial situation of European banking institutions. The analysis also revealed that increased levels of VCA lead to a rise in NPEs, while an increase in GhGRLP reduces NPEs. In contrast, financial institutions tend to recognize and report NPEs more accurately in contexts with greater transparency and accountability. In comparison, UnEmp negatively affects NPEs, suggesting that economic support measures during high unemployment can reduce NPEs in the subsequent period. In conclusion, climate risk management represents a crucial challenge for the financial stability of banking institutions. Policymakers and financial institutions must continue to develop and implement climate change mitigation and adaptation strategies to preserve financial system stability amid growing climate uncertainties. Full article

Greenflation or inflation for green energy transition in Europe becomes a structural problem of new scarcity and poverty, under Austrian Economics analysis. The current European public agenda on the Green Deal and its fiscal and monetary policies are closer to coercive central planning, against the markets, economic calculus, and Mises’ theorem. In this paper, attention is paid to the green financial bubble and the European greenflation paradox: in order to achieve greater future social welfare, due to a looming climate risk, present wellbeing and wealth is being reduced, causing a real and ongoing risk of social impoverishment (to promote the SGD 13 on climate action, it is violated by SGD 1–3 on poverty and hunger and 7–12 on affordable energy, economic growth, sustainable communities, and production). According to the European Union data, the relations are explained between green transition and public policies (emissions, tax, debt, credit boom, etc.), GDP variations (real–nominal), and the increase of inflation and poverty. As many emissions are reduced, there is a decrease of GDP (once deflated) and GDP per capita, evidencing social deflation, which in turn means more widespread poverty and a reduction of the middle-class. Also, there is a risk of a green-bubble, as in the Great Recession of 2008 (but this time supported by the European Union) and possible stagflation (close to the 1970s). To analyze this problem generated by mainstream economics (econometric and normative interventionism), this research offers theoretical and methodological frameworks of mainline economics (positive explanations based on principles and empirical illustrations for complex social phenomena), especially the Austrian Economics and the New-Institutional Schools (Law and Economics, Public Choice, and Comparative Constitutional Economics). Full article

This study examines the applications, benefits, challenges, and ethical considerations of artificial intelligence (AI) in the banking and finance sectors. It reviews current AI regulation and governance frameworks to provide insights for stakeholders navigating AI integration. A descriptive analysis based on a literature review of recent research is conducted, exploring AI applications, benefits, challenges, regulations, and relevant theories. This study identifies key trends and suggests future research directions. The major findings include an overview of AI applications, benefits, challenges, and ethical issues in the banking and finance industries. Recommendations are provided to address these challenges and ethical issues, along with examples of existing regulations and strategies for implementing AI governance frameworks within organizations. This paper highlights innovation, regulation, and ethical issues in relation to AI within the banking and finance sectors. Analyzes the previous literature, and suggests strategies for AI governance framework implementation and future research directions. Innovation in the applications of AI integrates with fintech, such as preventing financial crimes, credit risk assessment, customer service, and investment management. These applications improve decision making and enhance the customer experience, particularly in banks. Existing AI regulations and guidelines include those from Hong Kong SAR, the United States, China, the United Kingdom, the European Union, and Singapore. Challenges include data privacy and security, bias and fairness, accountability and transparency, and the skill gap. Therefore, implementing an AI governance framework requires rules and guidelines to address these issues. This paper makes recommendations for policymakers and suggests practical implications in reference to the ASEAN guidelines for AI development at the national and regional levels. Future research directions, a combination of extended UTAUT, change theory, and institutional theory, as well as the critical success factor, can fill the theoretical gap through mixed-method research. In terms of the population gap can be addressed by research undertaken in a nation where fintech services are projected to be less accepted, such as a developing or Islamic country. In summary, this study presents a novel approach using descriptive analysis, offering four main contributions that make this research novel: (1) the applications of AI in the banking and finance industries, (2) the benefits and challenges of AI adoption in these industries, (3) the current AI regulations and governance, and (4) the types of theories relevant for further research. The research findings are expected to contribute to policy and offer practical implications for fintech development in a country. Full article

In the European Union, greenhouse gas emissions statistics indicate only a slight decreasing trend over the last number of years in emissions from agricultural sources. Unless drastic action is taken in other sectors, the European Union’s 2030 and subsequent climate targets are unlikely to be met without greater reductions made in agricultural emissions. The policy instruments aimed at reducing agricultural emissions that are currently in place have proven to be ineffective; therefore, there is a need to look for new approaches towards bringing agricultural emissions down faster and farther. One obvious new approach is to integrate agricultural emissions into the European Union Emissions Trading System, which, so far, has proven very successful in reducing greenhouse gas emissions in the energy and industrial sectors. Hardly any attention has been paid in the scholarly legal literature to the question of integrating agricultural GHG emissions into emission trading systems. This article seeks to fill this gap. This paper presents the concluding findings of a Dutch Research Council-funded research project that aimed to assess whether and under what conditions the European Union Emissions Trading System could play a role in compelling the agricultural sector to reduce its greenhouse gas emissions. We answered this question by looking at lessons learned from existing examples in the world of market-based approaches to integrating agriculture into emission reduction schemes. To do this, we performed an ex-post assessment of three of the very few examples that exist in the world of such schemes in Canada, California, and Australia, followed by an ex-ante assessment of the prospect of including agricultural emissions under the European Union Emissions Trading System based on the practical experiences of those examples. In the ex-ante study, we evaluated how such inclusion could work, either indirectly, through allowing on-farm offset programs to reward increased carbon sequestration, or directly, by requiring farmers and/or other actors in the agricultural sector to surrender allowances for their direct emissions. As lawyers, we focused mainly on the legal considerations of such a proposition. Having conducted both the ex-ante and ex-post assessments, we conclude that introducing stricter legal instruments of one form or another that will reduce agricultural greenhouse gas emissions and increase carbon removal on agricultural land seems necessary for the European Union if it is serious about achieving its commitments under the Paris Agreement and meeting its obligations under its own Climate Law. The project makes a novel contribution to the legal scholarship in concluding that the most viable starting point for such stricter legislation would be to include methane and nitrous oxide emissions from livestock keeping and synthetic fertilizer use, respectively, under the European Union Emissions Trading System. To start with, this could be conducted by obliging meat and dairy processors and synthetic fertilizer producers to surrender allowances for the on-farm emissions associated with their products. This could be complemented by introducing a voluntary, but still highly regulated, carbon credits scheme that could encourage and reward farmers for reducing their own emissions and for transitioning to net-zero, and overall, more climate-resilient and environmentally friendly farming practices. Such credits could be offered for sale on the private carbon market as well as to Member State governments and the European Commission (through, for example, the Common Agricultural Policy, State Aid schemes, or the Innovation Fund). Full article