Environmental damage, abatement and sustainable economic growth

Chapter 13 - Price Stabilization

This study investigated the impact of the people category of the Sustainable Development Goals (SDGs) on sustainable and conventional economic growth in Asia and the Pacific region, using a sample of 52 selected countries between 2000 and 2023. Employing two distinct models, model A1 for conventional economic growth and model A2 for sustainable economic growth, we explained the relationships between five SDG indicators: employed poverty rate, stunted children, expenditure on health, expenditure of education, and % of women MNAs on economic growth. This study employed a fixed-effect model and random-effect model to investigate the impact of the people category SDGs on traditional and sustainable economic growth. The comparative analysis of each SDG in both models revealed valuable insights. SDG 1, “employed poverty rate”, has a positive impact on economic growth in both models, while SDG 2, “percentage of stunted child”, did not significantly influence economic growth in either model. Moreover, SDG 3 and SDG 4, relating to “government’s health expenditure per capita” and “government’s Education education expenditure per capita”, respectively, exhibited a positive impact on traditional and sustainable economic growth. Conversely, SDG 5, “percentage of women members of national parliament”, displayed an insignificant impact on traditional and sustainable economic growth models. In conclusion, this study suggests that policymakers should prioritize targeted interventions to alleviate employed poverty, enhance healthcare, and boost education spending. Moreover, promoting women’s representation in national parliaments should be approached with context-specific strategies to maximize its impact on economic growth.

The Indonesian government policy in encouraging sustainable economic growth to reduce unemployment, poverty and inequality is threatened to fail, because economic growth does not reach targets and is not of quality. The purpose of this research is to explain the four pillars of growth and development namely; human capital, social capital, institutional economics and entrepreneurship as the main drivers of quality and sustainable economic growth. This research method used primary data on entrepreneurship and SMEs in the provinces of Central Java and Yogyakarta. The correlational form of recursive model path analysis was used as analytical method. The research results show the very strong role of human capital as the main key in driving economic growth both directly and indirectly. The existence of human capital and social capital will further encourage new economic institutions, furthermore new economic institutions will encourage the competitiveness of productive entrepreneurship and high, quality, and sustainable regional economic growth. The policy implication is that high, quality, and fundamentally sustainable economic growth must be built on the four main pillars basis namely; human capital, social capital, institutional and entrepreneurship in order to be more successful in reducing development problems; unemployment, poverty and income inequality.

Analysis of energy consumption structure on CO[formula omitted] emission and economic sustainable growth

SDG 8’s goal is to promote sustained, inclusive, and sustainable economic growth; full and productive employment; and decent work for all. This chapter examines the experiences of East Asian developing countries in achieving rapid and inclusive economic growth by focusing on the role of international tradeand foreign direct investmentnexus created through global value chains (GVCs)by multinational corporations (MNCs). GVCs enabled participating companies and countries to improve productivity, contributing to economic growth. The factors attributable to the participation in GVCs include high competitiveness of local companies and open business environment created by the Asian government. Moreover, construction and maintaining well-functioning soft (e.g., education and legal systems) and hard (e.g., transportation and communication systems) infrastructure by the government and international donors contributed to the creation of business-friendly environment. Faced with growing protectionism and the threats of growing US-China rivalry, infectious diseases, climate change, etc., maintaining an open and transparent rules-based business environment is crucially important to further achieving sustained, inclusive, and sustainable economic growth. In the light of absence of effective global economic order, exemplified by ineffectiveness of the World Trade Organizationin trade liberalization as well as dispute settlement, regional economic frameworks such as the CPTPP and RCEP in the Asia and Pacific region would be proven to be effective to achieve the goal.

This study investigates the relationship between sustainable economic growth and foreign direct investment (FDI) in Saudi Arabia from 1980 to 2023. The ARDL approach and VECM technique are employed to analyze the short-run and long-run dynamics. The short-run results show mixed effects. Sustainable economic growth has a positive impact on current and one-period lagged FDI but a negative impact on the two periods lagged. Trade openness and infrastructure negatively affect FDI in the short run. Interestingly, oil rents and real economic growth also have negative short-run impacts on FDI, but these effects become positive with a longer lag. Long-run analysis reveals a negative relationship between trade openness, infrastructure, and oil rents with FDI, suggesting a potential crowding-out effect. Trade openness has a positive long-run impact on most variables, including sustainable growth, FDI, real growth, and CO2 emissions. Oil rents also have a positive long-run impact on these variables. This study finds six bidirectional causal relationships in the short run, primarily between trade openness, infrastructure, oil rents, and FDI. Unidirectional causality runs from oil rents, trade openness, exchange rate, sustainable growth, and real growth to FDI and infrastructure. Additionally, CO2 emissions cause FDI, and trade openness causes sustainable growth. While sustainable economic growth benefits FDI in the long run, short-term policies regarding trade openness and infrastructure require reevaluation. Oil revenue and real economic growth may initially deter FDI, but this reverses in the long term. To attract sustainable FDI, policymakers should focus on long-term economic growth strategies and consider reforms in trade and infrastructure policies. A comprehensive FDI strategy that moves beyond oil dependence and leverages trade openness is crucial to long-term economic diversification.

Sustainable economic growth and identifying factors affecting it are among the important issues which have always received attention from researchers of different countries. Accordingly, one of the factors affecting economic growth, which has received attention from researchers in the developed countries over recent years, is the issue of environmental technologies that enter the economic cycle of other countries after being patented through technology transfer. The current research investigated the role of the environment-related patents and the effects of the patented technological innovations compatible with climate change mitigation on the economic growth and development in the Middle East countries within a specific time period. The required data were gathered from the valid global databases, including Organization for Economic Co-operation and Development and World Bank and have been analyzed using multi-linear regression methods and econometric models with Eviews 10 software. The obtained results with 95% confidence level show that the environmental patents (β = 0.02) and environment management (β = 0.04) and technologies related to the climate change mitigation (β = 0.02) have a significant positive impact on the sustainable economic development and growth rate in the studied countries. Such a study helps innovators and policymakers in policy decisions related to sustainable development programs from the perspective of environmentally friendly technologies by demonstrating the role of patents in three important environmental areas, namely environmental management, water-related adaptation and climate change mitigation, as one of the factors influencing sustainable economic growth.

As the global financial and economic crisis hit the European Union, no country was left unharmed. To this day, the Member States share the burden of excessive foreign debt, inflation, budget deficit, high unemployment levels, shaken stability of the currency, and many more. Multiple responses were introduced to these damaging effects, including adopting changes to the use of the Globalisation Adjustment Fund, enabling a Financial Stability Mechanism for the Euro zone and introducing a number of micro-financing instruments, particularly to support SMEs. Nevertheless, these have all been short-term actions, which will not suffice to ensure a long-term, sustainable economic growth of the European economies and maintain the EU's position among global political and economic leaders. European leaders have adopted the Europe 2020 strategy for economic growth, which addresses all key-areas of economic growth - from innovations to employment and environment. Yet, the greatest challenge to this goal remains regional cohesion - namely, full economic and social convergence of the regions and Member States of the European Union. After thirty six years of a common Regional policy and over twelve years since the creation of the Cohesion policy, the remaining economic and social disparities within the Union are striking. What is more, the distribution of cohesion financing, similarly to the Common Agricultural policy direct payments, continues to portray a significant weakness in the common objectives of fair competition and solidarity among Member States. Within the next multiannual financial framework of 2014-2020, Regional and Cohesion policy of the EU will have a fundamental importance in eliminating existing disparities among regions, providing for a sustainable economic growth, increasing the EU's competitiveness and implementing the ambitious Europe 2020 goals. It can therefore be considered as a key element in Europe's economic recovery. This paper provides an analytical examination of the goals, strategies and current trends in the Regional and Cohesion policy as a tool of economic growth of the European Union. It provides a brief insight into the history, objectives and functioning of the policy in order to continue with analysis of its results and provide recommendations for improvement of the policy and increase its positive impact on the EU's economic development. Materials, statistics, working documents and analysis provided by EU and national institutions, as well as independent analysts have been used in the production of this paper. Results and conclusion are presented in a descriptive, logically constructive manner of synthesis. More specifically, the paper concludes by stating that in order to achieve full convergence and be able to ensure sustainable economic recovery and growth throughout the EU, greater flexibility and sovereignty need to be employed in political decision-making and regulations on allocation of funds. To raise the positive effects on Member States' economies, equality must be ensured to attain the Union's strategic goals without harming the weakest Member States' economies and competitiveness. It is therefore essential that the convergence objective be formulated as the leading goal of the Regional and Cohesion policy. Policies under the upcoming multiannual financial framework must be results-oriented. The EU's economic recovery, hence, also its Regional and Cohesion policy and allocation of funds, have to reflect the practice of fair competition, solidarity and equality. Only then will the European Union be able to fulfil its political and economic ambitions. DOI: http://dx.doi.org/10.5755/j01.eis.0.5.1092

PurposeThe purpose of this paper is to analyze the impact of tax structures on economic growth in Jordan over the period 1980-2015 using error correction techniques. It provides empirical evidence that the tax structure itself, comprising direct taxes, indirect taxes and total tax revenues, is an insufficient indicator for policymakers, whereas when each tax was included separately in the model, it was found that income tax, corporate taxes and personal taxes influenced per capita income growth negatively and that all of them were distortionary taxes. They greatly reduced both short and long-term per capita growth, while tariffs and consumption taxes were found to influence per capita income growth positively. The study also shows that relying heavily on increasing total taxes without taking into consideration the tax structure of the country would lead to a reduction in per capita income, in contrast to other tax structures that showed positive and neutral effects on per capita income. Tax reform and shifting from income taxes toward consumption taxes and tariffs would therefore enhance the well-being of individuals and increase their share of output.Design/methodology/approachThis study uses an analytical approach in the framework of an error correction model. This approach allows us to overcome many problems in time series data such as non-stationary, serial correlation and endogeneity of variables, which have been ignored in many published studies dealing with time series data.FindingsThe analysis shows that consumption and tariffs have a positive effect on per capita gross domestic product growth, whereas income taxes negatively influenced this growth measure. This implies that attention must be paid to a preference for consumption and tariffs to provide sustained growth. The authors recommend that the government objective should shift from raising revenues to achieving social justice and efficiency.Research limitations/implicationsThere are two main limitations inherent this study. The first limitation in regard to the missing data in the series for labor force and average years of schooling, interpolation method used to overcome this shortage. While the second limitation is about the importance of the tax structure itself and its direct impact on such patterns of investment which have been considered but within narrow limits.Practical implicationsThe relationship between taxes and economic growth is a controversial aspect of economics, because of its high impact on the decisions made by individuals and institutions, along with its direct influence on the economy as a whole. The authors recommend that the Jordanian government’s objective should shift from raising revenues to achieving social justice and efficiency. Furthermore, Jordan’s weak tax performance and ineffective tax structure indicate the importance for policymakers of focusing more closely on enhancing future per capita growth, which can be done by shifting from income tax toward consumption and trade taxes. On another level, policymakers can reform the tax structure in favor of long-run growth by addressing the importance of consumption taxes and trade taxes in their policies, rather than increasing tax rates.Social implicationsThe character of growth is more important than its magnitude. Economic growth should be reflected in the alleviation of poverty reduced inequality and ultimately better living standards. Additionally the authors believe that sustained economic growth can be achieved only if it is broadly based and inclusive. This implies the need to generate jobs for the growing workforce and the adoption of policies to protect and cater for the vulnerable segments of the population. Otherwise economic policy will fail to achieve its objectives.Originality/valueThis study assists policymakers in understanding the relationship between the various types of taxes and economic growth. In particular, the relation between the unique tax structure and growth drivers. This is the first study to analyze tax structure and economic growth in Jordan.

PurposeThe purpose of this paper is to empirically analyze the impact of remittance inflows on sustained economic growth in India.Design/methodology/approachThis study has taken a time series dataset for the period of 1976–2021, and a nonlinear autoregressive distributed lag model technique (NARDL) has been applied to check the impact of remittance inflows along with other control variables, including broad money and service sector performance, on the sustained economic growth of India.FindingsThe results of the study indicated that in both the short and long runs, any positive shock in remittance inflows has a positive impact on the economic growth of India, while negative shocks do not affect economic growth.Practical implicationsThe economic policymakers of India can use the findings of the study by implementing remittance-friendly policies. Moreover, NITI Aayog, the body working toward achieving sustainable development goals (SDGs) in India, can also use this study as a reference while making strategies to achieve SDG.Originality/valueEconomic growth has always been an area of interest among economists, researchers and policymakers. However, achieving sustained economic growth requires an analysis of those factors that themselves have sustained performance over a long period of time and have the potential to sustain it over the upcoming years. This study has taken remittance inflows as one such factor and investigated its impact on the sustained economic growth of India. At present, there is an evident gap in the literature that very little attention has been given to sustained Indian economic growth. Moreover, there is no study available in which the nonlinear impact of different variables has been tested on the economic growth of India.

The Brundtland Commission Report of 1987 laid out the case for ongoing economic growth as an essential prerequisite for sustainable development. This paper identifies reasoning utilized in that Report to support the idea of ‘sustainable economic growth’. The paper then argues that this economic progrowth bias has continued to represent the dominant, mainstream viewpoint within the sustainable-development movement. In a similar vein, the paper suggests widespread support for the idea of ‘smart growth’ as a form of ‘sustainable urban growth’ capable of advancing the end of sustainable cities. The purpose of the paper is to make the case for the intrinsically unsustainable nature of economic and urban growth. Included among the results of the paper are references to publications from the 1990s and the current decade revealing mounting evidence of existent ecological limits to growth. As its central conclusion the paper argues that continued allegiance to the idea of ‘sustainable growth’ constitutes a major impediment to realizing the ends of sustainable development and sustainable cities.

The concept of social entrepreneurship emerged as a significant factor that contributes toward public welfare and prosperity. Recent studies showed that social entrepreneurship influences the economic growth and sustainability of the state. Therefore, the underlying aim of this study was to investigate the impact of social entrepreneurship on sustainable economic growth and value creation. This study also undertook to observe the mediating role of innovation in the relationship between social entrepreneurship and sustainable economic growth and between social entrepreneurship and value creation. A questionnaire technique was adopted to obtain data from 343 tour operators in China. The Smart-PLS software was used to analyze the data through the aid of a structural equation modelling (SEM) technique. The results revealed that social entrepreneurship has an effect on sustainable economic growth and value creation. The results also demonstrated that innovation has an effect on sustainable economic growth and value creation. Moreover, it was also observed that innovation mediated the relationship between social entrepreneurship and sustainable economic growth and between social entrepreneurship and value creation. Theoretically, this study made a valuable contribution by examining the impact of social entrepreneurship on sustainable economic growth and value creation and innovation as a mediator. In terms of practical implications, this study would certainly aid the policymakers to devise policies and strategies aim to encourage and promote social entrepreneurship. Moreover, future studies can introduce other mediating and moderating variables in order to gain a deeper insight into the phenomenon.

Under the situation of China’s economic development, the sustainability of innovative human capital flows on economic growth is closely related to the state of future economic growth. Based on the analysis of innovative human capital flows, the article measured the stock of human capital flows by combining the expenditure method and also measured the quality index of China’s sustainable economic growth by using the PPM-RAGA model. Based on the data from 30 provinces and cities in China from 2012 to 2022, a spatial econometric model was designed to analyze the impact mechanism of innovative human capital flows on China’s sustainable economic growth and a spatial autocorrelation test was carried out. There was a significant difference in the overall flow of innovative human capital from 2012 to 2022, and the quality index of sustainable economic growth increased from 1.812 to 2.137, with the quality index of sustainable economic growth increases from 1.812 to 2.137, with an increase of 17.94%. There is an obvious global spatial autocorrelation of sustainable economic growth, and every 1% increase in the flow of innovative human capital leads to 0.141% sustainable economic growth in China. The flow of innovative human capital not only promotes the economic growth of the region but also leads to knowledge and technology spillovers that promote the economic growth of neighboring regions.

Education, as an investment in human capital, is regarded as an important determinant of sustainable economic growth [1,2]. The purpose of this study is to explore the cointegration and causality between the investment in education and sustainable economic growth in Guangdong province by using the panel data of 21 cities from 2000 to 2016. We construct a variable intercept panel data model with an individual fixed effect based on the Cobb-Douglas production function, estimating the contribution of the investment in education to economic growth by introducing lags. The findings show the existence of the feedback causality between education and sustainable economic growth. Also, the results reveal that the local financial investment in education plays a positive and statistically significant role in promoting sustainable economic growth. However, the contribution of the local financial investment in education to economic growth varies in different areas. The investment in education in the Pearl River Delta region have the most obvious pull effects on its regional economy, whereas the Western region takes the second place. Meanwhile, the local financial investment in education for its role in promoting economic growth obviously has a two-year hysteresis effect. These findings have important implications for Guangdong’s solution to the imbalance between regional educational investment and sustainable economic growth.

This study aims to examine the fundamental determinants of economic growth in G20 countries in the context of institutional structure, innovation, and education. The significance of the research lies in revealing that sustainable economic growth is shaped not only by traditional macroeconomic factors but also by the effectiveness of institutions, innovation capacity, and human capital investments. The existing literature contains limited studies that comprehensively address the interactions between these three variables and economic growth, specifically in G20 countries. The study applies panel data analysis to G20 countries for the period 2005–2024 and performs panel Granger causality analysis using fixed and random effects models after horizontal section dependence, unit root, and cointegration tests. Empirical findings show that institutions, innovation, and education variables have significant and positive effects on economic growth. Granger causality test results reveal that these variables unidirectionally drive growth, while growth has no feedback effect on these factors. The findings indicate that strengthening institutional reforms, encouraging R&D and innovation investments, and increasing human capital capacity are critical for sustainable and high-quality economic growth for policymakers.