No Silver Bullet for De-carbonization: Preparing for Tomorrow, Today

Abstract

The objective of this study is to examine the green supply chain management (GSCM) practices, economic growth, and socio-environmental indicators on a macro-level in a panel of European Union (EU) member states. The study employed different advanced statistical techniques, including generalized method of moments and fully generalized least square for testing the hypotheses. At the same time, the study also adopted Dumitrescu Hurlin Panel Causality test to the cause-effect relationship between the endogenous and exogenous variables. The findings revealed that green supply chain management practices are much useful to improve environmental sustainability through a reduction in carbon emissions and PM2.5, which further correlated with a reduction in the pollution-related mortality rates. Also, the results indicate that green supply chain practices spur economic growth in terms of providing trade opportunities around the globe particularly in pro-environmentalist countries without any non-tariff barriers/penalties and attract foreign investors due to green policies. In our best of knowledge, in the literature review, none of the research conducted on GSCM practices and Macro-level indicators, this study will assist both policymakers and practitioners to understand the holistic role of GSCM practices to greening the economy and provide a framework to develop game-changing environmental policies in the context of cross-border supply chain and trade.