Jul 2026· Tesam akademi dergisi· Vol 13, pp. 841-868· 0 citations· 47 references
Abstract
In today's world, sustainability strategies play a critical role in the transformation of global economies and industries. Green Economic Growth (GEG), which prioritizes environmental factors, is gaining increasing importance. Financial and green innovation are identified as the main driving forces behind GEG. However, research on the effects of these factors in OECD countries remains limited, and existing findings often show inconsistencies regarding the direction and magnitude of these effects. This study aims to comprehensively examine the impact of financial and green innovation on GEG in OECD countries. Using annual data from 15 OECD countries for the period 1996–2021, panel data techniques are applied. Cointegration tests are conducted to determine the presence of long-run relationships among the variables. Subsequently, long-run coefficients are estimated using the panel quantile regression method. The robustness of the findings is tested through OLS and fixed effects models. Additionally, causality tests are employed to explore the directional relationships between the variables. The results indicate that green innovation has a positive long-run effect on GEG, whereas financial innovation exerts a negative impact. Causality tests reveal bidirectional relationships among all variables. Policy recommendations include the promotion of green bonds and sustainable finance instruments, support for green investments through regulations that take environmental risks into account, and the expansion of access to green projects via technologies such as blockchain-based carbon markets. This research provides valuable insights for policymakers in designing more effective strategies to foster sustainable economic growth.
This study examines the long‐term association between business enterprise research and development (BERD), conceptualized as a corporate innovation channel, and environmental sustainability in Japan. While prior research has predominantly emphasized public‐sector innovation, comparatively less attention has been given to how BERD contributes to environmental sustainability outcomes at the macro level. Grounded in the Porter Hypothesis and the Load Capacity Curve framework, this study investigates whether sustained BERD is associated with improvements in environmental sustainability over time. Using annual data for Japan covering the period 1981–2022 and applying a Fourier‐Augmented ARDL approach to account for gradual structural changes, the analysis distinguishes between short‐run and long‐run dynamics. The results indicate that BERD has no statistically significant effect in the short run; however, a positive long‐run association emerges. This pattern suggests that the sustainability implications of corporate innovation materialize gradually through technological diffusion and structural transformation rather than through immediate environmental gains. Renewable energy use and urbanization are also found to contribute positively to environmental sustainability over time. Overall, the findings indicate that sustained corporate innovation commitment and institutional alignment are associated with long‐term environmental outcomes. The study contributes to the corporate sustainability literature by clarifying the dynamic relationship between BERD intensity and environmental sustainability within an advanced industrial economy.
Abdullah Emre Caglar, Shujaat Abbas, E. Uche· Corporate Social Responsibil...· 0 citations
In light of the current climate crisis, sustainable development has become a strategic element of economic policies. This has led to the step of green finance instead of traditional financial methods, adopting an approach based on environmental, social, and governance (ESG) standards. In this context, this study examines the effects of environmental protection (ESG) on green finance. The analysis covers seven countries (Australia, Belgium, France, Germany, Ireland, Netherlands, and Sweden) that scored 85 points or higher in the ISESG 2025 global ESG ranking and covers the period 2002–2021. The cointegration test of Westerlund and Edgerton is utilized in the study. Long-term coefficients are then obtained through AMG and rCCE estimators. Green finance is measured by the share of environmental protection expenditures in GDP, while ESG uncertainty (ESGUI), inflation, and financial development are included in the model. The analysis results reveal a long-term relationship between the variables and significant heterogeneity among countries. The findings display that ESG uncertainty negatively affects green finance in Ireland and Sweden, but positively affects it in Belgium. Inflation has a negative impact on green finance only in Germany, while the supportive role of financial development is found in Ireland and the Netherlands. Therefore, analyses reveal that high ESG performance alone does not guarantee the stability of green finance, and that ESG uncertainty plays a decisive role in this process. This study is the first to directly examine the empirical relationship between country-based ESGUI and green finance, focusing on the group of countries with the highest ESG scores.
Çisem Bektur· Intraders international trad...· 0 citations
This study examines how Green Innovation (GI) affects the decoupling of economic growth from CO2 emissions using a multi-country panel dataset for 2012-2023. The analysis extends the Environmental Kuznets Curve (EKC) framework by including GI as both a direct explanatory variable and a moderator in the growth-emissions nexus. Fixed-effects estimation with Driscoll-Kraay standard errors was used to account for heteroskedasticity, serial correlation, and cross-sectional dependence. The results indicate an inverted-U-shaped relationship between income and emissions, but the estimated turning points are not uniformly distributed across the observed income range. GI significantly reduces emissions in high-income countries. In contrast, its effect remains weak in middle- and low-income groups, where absorptive capacity, institutional quality, and energy structure constrain its environmental effectiveness. The interaction term shows that GI attenuates the emissions-intensive effect of growth. The findings imply that innovation policy must be differentiated by development stage rather than treated as a universal decoupling instrument.
Thị Trần· Engineering, Technology &...· 0 citations
This study reveals the impact of GDP per capita, trade openness, renewable energy and technology on financial development in the world's most developed countries for the period of 1990-2021. In this context, this study especially focused on whether environmental technologies and renewable energy support financial development. Driscoll-Kraay Panel regression analysis is used to estimate panel data in this study. In addition, panel quantile regression analysis is performed to determine the coefficients of the variables at different quantile. The long-run results are authenticated using panel fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS) and canonical cointegration regression (CCR). It is concluded that increases in renewable energy consumption and environment-related technology reduce financial development in the long-run. Although many studies found that financial development has positive effects on renewable energy consumption, the feedback effect is negatively in G7 countries to current study. In other words, policy incentives should be provided to return the productive resources created by financial instruments used in renewable energy investments back to the financial system and balance financial growth between environmental sustainability. The results suggest that financial markets should be regulated to obtain the positive effects of environmentally friendly investments. In this respect, this study signals that we have entered a period in which financial markets need to be reorganized.
Gülbahar Atasever· Environmental Research and T...· 0 citations
This study investigates transitional dual-sector financial development (DSFD), including financial markets and institutions on sustainable green growth (SGG). Meanwhile, integrated global innovation (IGI) and its strategic components are moderate variables, along with the effect of digital economy policy.
The sample consists of 64 Green Silk Road Corridor countries with balanced panel data from 2007 to 2022. We employed panel cointegration, two-step system (GMM), and 2SLS methods. OriginPro was used to show graphical trends of the variables and to generate heatmaps for the country- and income-wise analyses.
This study confirmed the significantly positive dynamic nature of SGG. The findings showed that the transition of DSFD significantly enhances SGG by increasing the level of green growth and facilitating the shift from a high-intensity carbon economy to a low-carbon sustainable economy. The moderating channels of IGI and interaction terms enhance a country's global SGG path and contribute to achieving the SDGs. However, the sub-indices and interaction terms on the SGG impact appear mixed. The China Silk Road digital economy policy shock contributes positively to, and boosts, the linkage between DSFD and SGG. Hence, the Silk Road innovative digital initiatives policy shock also contributes substantially to partner countries' SGG paths. Furthermore, macroeconomic conditions, regulatory governance resilience, and energy intensity contribute positively to SGG, except for the productivity rent of natural resources.
The study was limited to 64 GBRI countries that participated in the 2016 green initiatives. The theoretical contribution affirms that Green Silk Road partner countries are on a sustainable trajectory, supported by positive, genuine savings proposed by economic and endogenous green growth theories. The study suggests that nations should reinvest their financial, natural, and human capital resources into reproducible forms of capital, aligning with the “Hartwick rule” principles and facilitating the transition towards a stronger, greener path.
This study emphasizes the potential of innovative technology-enabled financial systems and resilient global interconnectedness to accelerate the transition toward green development and foster integrated societies that support sustainable green growth without compromising future needs.
Dual-sector financial development, regional innovation and the digital economy primarily contribute to raising and upgrading people's living standards, integrating sustainable green growth, and alleviating poverty through societal education from environmentally friendly projects. It is concluded that the underprivileged population remains large. Therefore, in the coming year, better integrated global innovation, effective implementation mechanisms and digital economy policies supporting dual-sector financial development, comprising financial markets and financial institutions, are required to boost sustainable green growth.
The study is innovative and makes valuable contributions to this emerging concept in this field, particularly within the context of Green Silk Road Corridor countries. First, this study is pioneering and innovative in addressing the critical problem of how to model sustainable green growth based on the triple bottom line, contributing through green savings (adjusted net saving index including particulate emissions), known as the Solow model, to this domain of knowledge based on the Sustainable Development Goals, including the social dimension (SDG 4) of quality education, the economic dimension (SDG 8) of decent work and economic growth and the environmental dimension (SDG13) of climate actions, which is a key objective of the COP29 on climate change. Second, this pioneering study, in the of the Green Silk Road Corridor, explores the untapped potential of the multi-dimensional integrated global innovation index and its of tech-enabling innovation sub-indexes as moderating and interaction terms to contribute to the body of knowledge on the SDGs, especially SDG 8 (based on decent economic growth through financial integration), SGD-9 (ensuring infrastructure, industrialization, and innovation), SDG 16 (helping in strong institutions, peace, justice), and SDG-17 (strengthening the implementation means for the sustainable development). Moreover, it investigates the unified dynamic influence of dual-sector financial development, including financial institution stability and market resilience, on SDG goal 8 and related theoretical and practical knowledge. This study also intends to bridge the research gap by investigating the moderating pre- and post-policy role of the spillover effects of China's Green Silk Road Corridor digital economy policy as a policy shock on sustainable green growth, thereby contributing to the body of knowledge.
CO₂ emissions remain a major challenge to Malaysia’s sustainable development and transition toward a green economy. This study examines the determinants of CO₂ emissions in Malaysia from 1990–2024, focusing on GDP, energy consumption, and trade (imports and exports of goods and services). Guided by the Environmental Kuznets Curve (EKC) framework, the study investigates the long-run effects of these variables on environmental quality. Using annual data from the World Bank and econometric techniques including the Augmented Dickey-Fuller (ADF) unit root test, Akaike Information Criterion (AIC), cointegration, and regression analyses, the findings show that GDP, energy consumption, and imports significantly increase CO₂ emissions, supporting the inverted U-shaped EKC hypothesis. Exports exhibit mixed effects, with stronger impacts at higher emission levels, while energy consumption acts as a key channel through which trade influences environmental degradation. The results highlight the need for green economy strategies that promote energy efficiency and sustainable trade practices to decouple economic growth from environmental degradation. Despite being limited to data available up to 2024, the study provides valuable evidence for policymakers seeking to align Malaysia’s economic and trade objectives with international carbon reduction commitments.
Nur Raudhah Zakaria, S. A. Jalil, Leylawati Joremi et al.· Quantum Journal of Social Sc...· 0 citations
