Search Results (26)

Achieving environmentally sustainable growth is a core challenge for developing economies, yet the welfare consequences of green development policies for vulnerable populations remain understudied. This article investigates the distributional impacts of one of the world’s largest development interventions: China’s energy transition. By integrating provincial-level energy metrics with a decade-long household panel survey (CFPS), we employ a fixed-effects model to provide a holistic assessment of the policy’s effects on household well-being. The analysis reveals a stark trade-off: a 10% increase in clean energy adoption generates significant non-monetary well-being gains, equivalent to a 190,000 CNY annual income rise, primarily through improved environmental quality and cleaner cooking fuel access. However, these benefits are partially offset by rising energy costs. Our heterogeneity analysis reveals a clear regressive burden: the transition significantly increases energy expenditures for rural and low-income households, while having a negligible or even cost-reducing effect on their urban and high-income counterparts. Our findings demonstrate that while the energy transition promotes aggregate welfare, its benefits are unevenly distributed, potentially exacerbating energy poverty and inequality. This underscores a critical development challenge: green growth is not automatically inclusive. We argue that for the energy transition to be truly pro-poor, it must be accompanied by robust social protection mechanisms, such as targeted subsidies, to shield the most vulnerable from the adverse economic shocks of the policy. 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

Amid escalating concerns over air pollution and demographic shifts, industrial robots have emerged as a key solution to enhancing energy efficiency, reducing emissions, and fostering economic growth. However, existing research often overlooks their role in shaping green total factor productivity (GTFP), a critical measure of environmentally sustainable economic performance. This study investigates the relationship between industrial robot applications (IRAs) and high-quality economic development (HQED) by integrating theoretical modeling and empirical analysis. Using panel data from 32 countries (16 developed and 16 developing) over the period of 1993–2019, classified according to the 2023 International Monetary Fund (IMF) standards, this study employs fixed-effects models, system generalized method of moments (SYS-GMM), and threshold regression models to assess IRA-induced impacts on HQED. The findings reveal that IRAs significantly contribute to HQED, with a stronger effect observed in developing economies. Moreover, a threshold effect exists, wherein environmental regulations (ERs) mediate the effectiveness of IRAs in improving GTFP. Additionally, IRAs drive HQED through foreign direct investment (FDI) and technological innovation (TI). These results provide empirical evidence and policy insights for leveraging industrial automation to promote sustainable economic growth across different national contexts. Full article

The ability of the agriculture sector, which is exposed to climate hazards, to cope with climate challenges and to strive in spite of them, is conceptualized as the resilience of agriculture. In enhancing climate-resilient agriculture, the cash reserve ratio (CRR) is generally perceived to serve two crucial functions: first, encouraging banks to allocate credit to agriculturalists for climate-resilient agricultural practices; second, enhancing agriculturalists’ ability to sustain agricultural output growth in spite of climate crises. In light of this, we conducted an ex post evaluation of the effect of the currently in-use CRR on bank loans to climate-challenged Nigeria’s agriculture sector for climate-resilient agricultural practices. Additionally, this study investigates the CRR’s impact(s) on agricultural output growth amidst climate challenges. Other additional independent variables include monetary policy rate, government capital expenditures on agriculture, and government recurrent expenditures on agriculture, as well as temperature, precipitation, and the renewable energy supply. Using annual data from 1990 to 2022, the results from an autoregressive, distributed lag approach suggest that the standard CRR stipulated by the Central Bank of Nigeria in the present era of climate change cannot entirely sustain climate-resilient agriculture, evident in the present study’s discoveries on its inability to perform its two major functions (credit and growth) in enhancing agricultural resilience. These findings highlight the need for the green differentiation of the CRR to ensure its effective utilization in enhancing climate resilience. Full article

Researchers, policy- and decision-makers, and planners have historically focused on the monetary value of parks and green spaces (either as costs or potential sale value). In this article, we argue that researchers, practitioners, and policymakers need to consider and investigate the non-economic values of parks and green spaces to more fully understand the worth of these spaces. We apply the total economic value framework (TEVF) to parks and green spaces in Kalamazoo, Michigan, to assess how use values and non-use values shape how people value local green spaces. This methodology provides a more comprehensive value of park spaces beyond the economic value which, in most cases, undervalues natural spaces. Our research indicates that, in the case of Kalamazoo, Michigan, parks and green spaces are worth more than the monetary value of their property to people. Non-use, existence, and bequest values all load strongly in our analysis, and these results indicate that people in the Kalamazoo area believe the worth of their park spaces extends well beyond the purely economic realm. We further argue that TEVF is an effective tool for park managers to incorporate diverse value systems and perceptions to quantify the importance of these values. Full article

The environmental impact of beef cattle production varies significantly across farming systems, influenced by factors like feed, management practices, and land use. By applying the LCA perspective with “from cradle to farm gate” boundaries and using the CAP’2ER^® tool, this study evaluates the carbon footprint of two farming models in Italy: a semi-extensive cow-calf beef production and an intensive farm for calf fattening. The carbon footprint was calculated using two functional units: kilograms of live meat gross production (LMGP), and a monetary unit. The first model showed a lower carbon footprint, with 13.4 kg CO₂eq/kg LMGP and 1.96 kg CO₂eq/EUR, compared to the second one 19.2 kg CO₂eq/kg LMGP and 5.20 kg CO₂eq/EUR. The use of monetary value as a functional unit is rarely explored in the literature, since most studies have focused on weight-based metrics, favoring intensive systems with longer lifecycles compared to extensive farming. Furthermore, contrary to findings in the literature for semi-extensive systems like adaptive multi-paddock grazing, the tool used for the calculation did not detect any carbon sequestration. These findings highlight the need for further investigation into diverse functional units to assess the environmental and economic performance of farming systems. Expanding this approach could inform policies and consumer decisions, promoting sustainable beef production aligned with climate goals and the European Green Deal agenda. Full article

Along with the new stage of prevention and control of the COVID-19 pandemic and the vision and goals of combatting climate change, the challenges of the transition to a green economy have become more severe. The need for green recovery of the economy, stability and security of energy production and consumption, and the coordination of low-carbon transformation and socio-economic development has become increasingly urgent. This paper proposes a new theoretical framework to study the effect of carbon emission reduction on the mutual application of the carbon market, fiscal policy and monetary policy under the non-homothetic preference of energy product consumption. By constructing an environmental dynamic stochastic general equilibrium (E-DSGE) model with residents’ non-homothetic preferences, this paper finds that coordinating the carbon market and macroeconomic policies can achieve economic and environmental goals. However, the transmission paths for each are different. The carbon market influences producers’ abatement efforts and costs through carbon prices. Monetary policy controls carbon emissions by adjusting interest rates, while fiscal policy controls carbon emissions by adjusting total social demand. Improving non-homothetic preferences will amplify business cycle fluctuations caused by exogenous shocks, thus assuming the role of a “financial accelerator”. Further research shows that non-homothetic preferences influence the heterogeneity of different policy mixes. Finally, this paper discovers that the welfare effects, the relative size and difference of long-term and short-term effects resulting from the different policy mixes, also depend on the level of non-homothetic preferences. The intertemporal substitution mechanism due to the improvement of non-homothetic preferences endows low-carbon production with “option” characteristics. Our study reveals the role of non-homothetic preferences on the effectiveness of policy implementation. It highlights the importance of matching monetary and fiscal policies with the carbon market based on the consumption and production side. It provides ideas for policy practice to achieve the goal of “dual carbon” and promoting coordinated socio-economic development. 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

We studied the relationship between sustainable investment indexes and examine whether this relationship varies in bullish, bearish, and stable financial markets. To understand this issue more deeply, we analyzed the connectedness between three indexes—the Sustainable Impact investments, Paris-aligned stocks, and green bonds indexes—using the daily closing prices from 1 June 2017 to 15 April 2024, encompassing 1793 observations. We used a quantile vector autoregressive (QVAR) model to understand the dynamic relationship among the considered indices. The findings indicate that sustainable investments are strongly interconnected in both high and low quantiles, but this connection weakens significantly during periods of market stability. The Sustainable Impact investments and Paris-aligned stocks indexes are net transmitters of impacts to other sustainable alternatives, while the green bonds index is a net receiver. We also observed an increase in interconnectedness across all quantiles during the pandemic, the Russia–Ukraine military conflict, and changes in the European Union and the United States’ monetary policies. Full article

Tobacco farm laborers are primarily women and children working for very low wages. The aim of this study was to explore occupational and reproductive health challenges faced by women tobacco farm laborers in Mysore District, India. We conducted interviews and six focus group discussions among 41 women tobacco farm laborers. Codes and themes were generated based on deductive and inductive approaches using the socioecological model. Participants reported symptoms of green tobacco sickness including headaches, back pain, gastric problems, weakness, and allergies during menstruation, pre-natal, and post-natal periods. Participants had poor awareness about the health effects of tobacco farming, and there were gender inequalities in wages and the use of personal protective equipment. Participants received support from family and community health workers during their pregnancy and post-natal period. Women reported wanting maternity benefits from the tobacco board, as well as monetary support and nutritional supplements. There is a need for health education about the environmental dangers of tobacco among farm laborers, and more supportive policies for women farmworkers during pregnancy and post-natal periods. Full article

The current global energy crisis has prompted a comprehensive investigation into its influencing factors. It is hypothesised that a set of monetary, macro-environmental, and institutional variables causally affect the transition to green development in a holistic model. Monetary expansion and central bank characteristics are required for economic and environmental development. The current study investigates and rigorously verifies the impact of expansionary monetary policy actions on green innovation, using a panel of 109 countries from 2010 to 2018. Overall, specific actions have a substantial positive effect on the performance of green innovation. A rise in per capita GDP, government spending, and improvement in bureaucracy all promote green economic activity. Green innovation is significantly affected by developing nations’ central bank independence and lower interest rates. Expansionary monetary policy, central bank transparency, and energy variables promote green growth in developed countries and green innovation in Latin American countries and in East Asian and Pacific countries. Finally, green innovation is more affected by expansionary monetary policy in countries with high institutional quality, industrial concentration, and energy intensity, and inflation and trade openness serve as deterrents in the monetary expansion–green development nexus. Full article

Unlike conventional finance, sustainable finance seeks to integrate social, environmental, and climate change considerations into financial institutions’ business strategies. The financial system’s ability to positively respond to sustainability transition demands is contingent upon a directional transformation that involves regulatory, political, structural, theoretical, and relational shifts. Accordingly, this paper performs a quali-quantitative analysis that combines both a bibliometric method with a content analysis process to investigate the trend of sustainable finance literature in the Scopus database and provide directions for potential future research. Our bibliometric performance analysis of 723 publications reveals that the UK, China, the US, Switzerland, and Japan are the major centers of research excellence in sustainable finance. They are the most productive countries and hold the most relevant institutions. Moreover, the prevalence of transdisciplinary journals over mainstream finance and economics sources is obvious. Our network map analysis, on the other hand, shows the substantial relevancy of sustainable/green banks’ involvement in sustainable development. Nonetheless, its relatively low density underlines the existence of relevant research gaps. Therefore, we undertake a content analysis of that particular topic’s literature to derive its conceptual structure and truly understand banks’ important role in sustainability transition. Key research themes in this respect include sustainability performance and banks’ profitability associations; sustainable banks’ risk profile; determinants of banks’ willingness to introduce sustainability criteria into their business strategy; depositors’/customers’ responsiveness to banks’ sustainability performance; and relevant macroprudential regulations, monetary policies, and supervisory guidelines to sustainability transition. Full article

Urban forests play a vital role in maintaining the city ecological balance and providing ecosystem services to citizens. Ecosystem services lead to better quality of life, better environmental quality, and more sustainable urban growth. However, many emerging nations have often progressed at the price of lowering and sacrificing forest coverage, which has a negative impact on the benefits that the public receives from natural green spaces. As a result, the goals of this research were to ascertain visitor impressions of urban forests in Kuala Lumpur, to assess the value assigned by visitors to urban forests in Kuala Lumpur, and to investigate the elements that impact the willingness to pay. A questionnaire-based field study was conducted on a total of 254 respondents among Taman Tugu Urban Forest visitors, Kuala Lumpur. The results show that visitor perceptions of regulating services, cultural services, and supporting services were positive, with high-level score values of 4.74, ±0.40, 4.69, ±0.37, and 4.70, ±0.50. Furthermore, provisioning services were perceived to be of moderately high level (3.49, ±1.12), and visitor perceptions of urban forest amenities were positive, with high-level scores (4.39, ±0.53). Overall, this indicates that visitors had a very good perception of Taman Tugu Urban Forest ecosystem services. However, when we looked at the factors that contributed to the willingness to pay for the conservation of urban forests and entry, only the perception of the amenities provided at Taman Tugu had a significant relationship with the willingness to pay. A total of 79.1% of visitors expressed their willingness to pay, for forest conservation, an average payment value of MYR 51.32 per year, while 65% of visitors were willing to pay, as entry fees at urban forests, an average payment value of MYR 3.07 per person. It can be concluded that visitors had a positive perception of urban forests in Kuala Lumpur and were willing to contribute for conservation and entry fee purposes. We hope that the findings of this research contribute to a better understanding of urban forest ecosystem services in Kuala Lumpur and visitor perception. In addition, this study could also be useful to policy makers to formulate a specific policy focus on urban forests by comprehensively and holistically including the monetary value of the ecosystem services provided, considering public opinion and needs, and performing financial allocation for conserving and managing urban forests. This is to ensure that the urban sustainable development goals and smart city aims can be achieved. Full article

Suggested only a few years ago, green central banking has received a new impetus with the central bank interventions implemented in the wake of the COVID-19 pandemic. Several central banks, with the European Central Bank (ECB) and the Bank of England (BoE) being prominent examples, have stepped up their public communication on this issue in an effort to explain and justify their planned or ongoing policy actions. Carefully recorded and easy to find, these public communication messages are a rich source of insight into the process of monetary policy formation. In this article, we analyze the messages from two central banks, with the primary objective of identifying the narratives they use (if any) and describing the key features of these narratives, thus shedding new light on an ongoing process of policy change. A secondary objective of the article is to contribute to the growing literature related to the use of narratives in public policy by studying narratives in monetary policy through qualitative means, an approach that, to date, has received relatively little attention from scholars. To this end, we discuss two expectations related to the use of policy narratives derived from the literature. Thus, we hope to show how the two central banks devise and deploy narratives to help implement an unprecedented turnaround in monetary policy. Full article

This paper discusses the future of the Stability and Growth Pact (hereafter SGP). Although Neoclassical economic models argue that strict fiscal and monetary rules minimize moral hazard and crowding out, in practice many governments adopt fiscal expansion (in recent years in the form of non-standard monetary measures) to mitigate market failures, consequently rethinking monetary rules and targets. Government spending and countercyclical policies are essential tools for soothing business cycles and other market failures. To this end, we empirically test whether current and past forms of the SGP have led to greater convergence, while we critically assess and investigate a possible SGP reform. By adopting more flexible rules, in terms of government spending and fiscal expansion, the Economic and Monetary Union (hereafter EMU) could yield multiple positive spillover effects in long-term economic growth under specific terms and conditions, such as green conditionalities. We conclude that to mitigate the triple crisis threat (economic, environmental and health), what is mostly needed are reforms in the form of fiscal federalism, such as common debt issuance (Eurobonds) that enhance the ability of the EMU to tackle the consequences of the aforementioned crises. Full article