Green Economic Growth Research Articles

Can financial globalization and good governance help turning emerging economies carbonneutral? Evidence from members of the BRICS-T.

Since turning carbon neutral is regarded as a major macroeconomic agenda worldwide, this study examines whether financial globalization and good governance can help Brazil, Russia, India, China, South Africa, and Turkey in achieving carbon neutrality. Considering the period of analysis from 2000 to 2020 and utilizing robust econometric methods, it is observed that the environmental consequences vary across different components of financial globalization. In particular, the results validate the pollution haven hypothesis by confirming the carbon emission-boosting effect of de facto financial globalization indicators. In contrast, the pollution halo effect hypothesis is verified by the finding of the carbon emission-abating effect of de jure financial globalization indicators. Besides, promoting good governance is evidenced to impose carbon emission-mitigating impact in the long-run. The findings also authenticate the existence of the Environmental Kuznets Curve (EKC)hypothesis for the emerging countries of concern. Finally, for both the short and long runs, it is found that the non-renewable to renewable energy transition contributes to lower discharges of carbon dioxide, while urbanization results in the amplification of thecarbon emissionfigures. Considering these critically important findings, it is necessary for these countries to impose restrictions on the influx of unclean foreign directinvestment, facilitate and ease the investment process for foreign investors for investing in environment-friendly projects, promote good governance, and adopt green economic growth and sustainable urbanization policies by developing their respective renewable energy sectors.

Coffee agroforestry as an alternative to the implementation of green economy practices in Indonesia: A systematic review

<abstract> <p>Agroforestry systems, particularly the coffee agroforestry system (CAS), represent a promising approach to achieving sustainable development and promoting a green economy in Indonesia. Our research aims to explore the potential of CAS to provide ecosystem services and socio-economic benefits and address environmental risks in Indonesia. To critically analyze the current state of CAS in Indonesia, its potential for sustainable development, and the challenges that should be addressed to increase its uptake, we conducted a systematic review of published academic literature. Our findings suggest that CAS has the potential to turn a profit in the future thanks to rising global and domestic market demand as well as environmental benefits like reducing carbon emissions and improving resource efficiency. However, several challenges should be addressed to improve coffee quality and sustain green economy activities, including product certification, collaboration with NGOs and business entities, and coordination of government policies at the site level. Overall, this study highlights the importance of CAS as a green economy approach in Indonesia and suggests policy recommendations to support its promotion and adoption. By addressing the challenges and promoting the potential of CAS, sustainable development and green economic growth can be achieved in Indonesia.</p> </abstract>

Assessment of green economic growth in the current specific socio-economic context of Vietnam

Assessment of green economic growth in the current specific socio-economic context of Vietnam

Can the digital economy improve green total factor productivity? An empirical study based on Chinese urban data.

With the new generation of technological revolution, the digital economy has progressively become a key driver of global economic development. In this context, how to promote green economic growth and improve green total factor productivity (GTFP) with the help of the digital economy is an important issue that urgently needs empirical research. We adopted the panel data of 278 Chinese prefecture-level cities from 2011 to 2020 to test whether the digital economy improves the GTFP through the Gaussian Mixed Model (GMM) dynamic panel model. The moderating effect model has been used to explore the impact mechanism from the perspectives of industrial structure upgrade and environmental regulation. In addition, a grouping regression was applied to the sample cities to test the heterogeneous impact of the digital economy on the GTFP. Based upon the empirical findings, this work has the following conclusions. First, the digital economy plays a significant role in improving the GTFP. Second, an industrial structure upgrade has a positive moderating effect on the ability of the digital economy to enhance the GTFP. The environmental regulation, in contrast, has a negative moderating effect. Third, the digital economy exerts heterogeneous impacts on the GTFP across regions, but not at the city level.

Examining the potential role of ICT diffusion on green growth: does financial development matter in BRICS economies?

Green growth refers to the economic growth strategy, which is less detrimental to natural assets, predominantly the environment. Therefore, the main motive of investment and innovation activities should be to attain economic growth while sustainably utilizing natural assets. In this regard, we aim to explore whether ICT diffusion and financial development matter for attaining green economic growth in BRICS economies. The long-run autoregressive distributed lag (ARDL) results show that internet development exerts a positive influence on green growth in four BRICS economies excluding India. However, the long-run estimates of mobile cellular subscriptions are positive only in Russia and China. On the other side, the increase in bank credit and insurance premium also contributes to the long-run green economic growth in almost all BRICS economies. Policymakers should focus on the increased use of ICT in the economy that would replace the physical resources in the economy with information resources. Besides, financial services should be provided to individuals and small and medium enterprises involved in green consumption and production activities.

Sustainable development with city, industry, economic and environment: The role of city-industry integration on green economic growth

<p>In order to avoid the real economy development lags behind and the deterioration of ecological problems in the process of traditional urbanization, China has been promoting city-industry deep integration, but the connection between city-industry integration and green economic growth, especially the spatial effect, has not been systematically explained. Based on the panel data from 2007 to 2018, this paper constructs an evaluation index system and uses the SEEA method to measure city-industry integration (CII) level and green economy growth (GEG) level. Then, by employing spatial Durbin model and intermediary effect model, it further systematically investigates the spatial impact of CII on GEG and the potential mechanism. The study found that: (1) On the whole, CII shows “slow-steady integration” trend, but regional heterogeneity was obvious and accompanied by “slow gap expansion”. GEG experienced “sharp increase” with “polarization” characteristic. (2) CII can directly promote regional GEG (with a marginal effect of 0.689), more effectively than traditional urbanization, and CII has obvious spatial spillover effects on GEG in both “local effect” and “neighboring effect”. (3) Interestingly, technological innovation and consumption structure upgrading are significant mediating mechanisms. (4) The direct positive effect of CII shows the regional imbalance characteristic. Finally, the corresponding policy implications are put forward.</p>

Covid-19 impact on financial growth and guidelines for green recovery in BRICS: fresh insights from econometric analysis

Sustainable development and socioeconomic growth are balanced through green economic recovery post pandemic. To statistically examine the coordinated development of green economic growth, foreign direct investment, stock market return and financial development, this paper constructs a complete indicator system for green economic recovery and financial development, by using a VAR model for the BRICS over the period of 2000–2020. Our results demonstrate that FDI significantly improves environmental quality by lowering pollution levels and improve the green economic growth in the region (BRICS). Stock market also has a significant positive effect on green economic growth. On the other side, FDI has a significant detrimental effect on financial development. Finally, financial development has a considerable detrimental impact on environmental deterioration. Our analysis recommends that besides the initiatives in financial growth, FDI and stock market be given priority in order to improve sustainable development.

Fiscal Policy, Growth, Financial Development and Renewable Energy in Romania: An Autoregressive Distributed Lag Model with Evidence for Growth Hypothesis

This research aims to identify the influence of fiscal policy, financial development and economic growth on the increase of renewable consumption in Romania. To achieve our objective, we employ bivariate regressions through the Autoregressive Distributed Lag method, over the 2000–2020 period, to examine these influences. We find clear evidence that the variables observed (implicit tax rate on energy, external debt stocks, real GDP per capita, environmental tax revenues from energy taxes, and market capitalisation of listed domestic companies) have significant effects on the use of renewable energy. Four unidirectional causal relationships were identified in the long run: two from independent variables towards the dependent variable and two from the dependent variables towards two other independent variables. The importance of this study is that its results can contribute to the finding of the most suitable solutions to improve renewable energy consumption in Romania and mitigate the impact of climate change. Consequently, the results of this study reveal significant conclusions and policy recommendations for Romania moving towards sustainable and green economic growth, through a balanced set of policies and measures smartly applied, accompanied by a solid rate of absorption of green funds.

Does Digital Finance Promote Green Economic Growth?

This paper constructs a balanced panel model of 285 cities in China to study the impact of digital finance on green economic growth. It is found that digital finance has a significant contribution to green economic growth. Green finance can increase green economic growth by promoting industrial structure upgrading. The contribution of green finance to green economic growth is higher in eastern cities and western cities than in the east. Digital finance has a significant threshold effect on green economic growth, and when the depth of digital finance exceeds the threshold value, the promotion effect of digital finance on green economic growth is greater.

Impact of economic and green growth on poverty, income inequalities, and environmental degradation: a case of South Asian economies.

This study aims to investigate the impacts of traditional and green economic growth on poverty, income inequalities, and environmental degradation in the case of South Asian economies. In this regard, the study collects data for the period 2000 to 2018 from five South Asian economies (Pakistan, India, Sri Lanka, Nepal, and Bangladesh) from world development indicators (WDI). The study applies second-generation unit root test and co-integration technique, CIPS unit root and Westerlund co-integration tests, to establish the stationarity of the series and co-integration relationship among variables. Furthermore, this study utilized dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS) models to investigate the long-run empirical estimates. The study finds that both traditional economic growth (GDP) and green economic growth (GGDP) have a negative impact on poverty and inequality; however, GGDP contributes more than traditional GDP to reducing poverty and inequality. Moreover, the study shows that economic growth has a positive long-run impact on environmental degradation while GGDP has a negative and significant long-run association with environmental degradation. The study recommends that policymakers should develop policies to develop green economic growth to save the environment and for the reduction in poverty and income inequalities in south Asian economies.

The Impacts of Eco-Tourism and Agrotourism Based on Plant Variety Protection to Sustain Biological Diversity and Green Economic Growth in Indonesia

Ecotourism and agrotourism have contributed to green economic development as well as to the development of plant variety protection. Agrotourism is a form of commercial enterprise that links agricultural production and/or processing with tourism to attract visitors to a farm or other agricultural businesses for recreation, entertainment, or education for visitors and to generate income for the farm or the business owner. Ecotourism encompasses nature-based activities that increase visitor appreciation and understanding of natural and cultural values. In order to encourage the community and business owners to participate in eco-tourism and agrotourism, it is imperative to protect plant variety as one of the regimes of intellectual property rights. The aim of the research is to analyze the impacts of ecotourism and agrotourism based on plant variety protection contributing to the sustainability of biodiversity and green economic growth in Indonesia comprehensively. This research is normative juridical research by employing conceptual and statutory approaches. The result of the research found that enhancing ecotourism and agrotourism based on plant variety protection can sustain and enrich biodiversity achieving green economic growth in Indonesia. However, there are some achievements and challenges that have to be addressed, such as the harmonization of the regulations, encouragement of the community and business owner participation in ecotourism and agrotourism by creating a new variety of plants to enhance biodiversity to achieve green economy development in Indonesia.

Does green economy contribute towards COP26 ambitions? Exploring the influence of natural resource endowment and technological innovation on the growth efficiency of China's regional green economy

The COP26 conference pointed out that, in order to tackle climate change and promote global economic recovery, it is necessary to maintain a multilateral consensus, focus on practical actions, and accelerate green transformation. Whether a green economy can help achieve the goals of the COP26 has become the focus of attention of governments worldwide. Based on the data of 30 regions in China from 2009 to 2020, this study used the super-efficiency SBM model to evaluate green economy growth efficiency (GEGE) in China and also used the system GMM model to explore the impact of natural resource endowment and technological innovation on GEGE. The conclusions are as follows: (1) From 2009 to 2020, China's GEGE level was 0.606, which is a low-medium level. During the research period, the GEGE level showed an upward trend as a whole, with obvious regional differences, showing a decreasing trend from the eastern to central regions and the western region. (2) Natural resources can promote national GEGE. The “resource curse” was found to not exist from a country-wide perspective, and there was no inverted U-shaped relationship. Natural resources were found to inhibit the GEGE of the eastern and central regions with no inverted U-shaped relationship, but they were found to promote GEGE in the west of China with an inverted U-shaped relationship. (3) Technological innovation can improve the GEGE of the whole country and the three regions, and the effect is the largest in the western region. (4) In the eastern region, environmental regulation was found to promote GEGE, but inhibited the GEGE of the whole country and the other two regions. Economic development was found to have a positive effect on GEGE in all the regions. FDI can improve the GEGE of the whole country and the eastern and central regions, but had a negative impact on the west of China. Green finance was found to promote GEGE in the whole country and the eastern and western regions; although this was positive in the central region, it was not significant. The research in this paper has important theoretical reference significance for achieving the regional COP26 targets by using the green economic growth mode.

Do Education Human Capital and Environmental Regulation Drive the Growth Efficiency of the Green Economy in China?

The question of how to gradually transform the economic growth mode from extensive growth to intensive economic growth, and steadily improve the efficiency of green economic growth (GEGE), has become the focus of society and scholars. The present study uses the SBM-DDF directional distance function to measure GEGE from 2008 to 2021 in China, and then selects the bootstrap regression method to test the influencing factors of China’s GEGE. The following conclusions are obtained: (1) the GEGE level is still low, and its average value in the fourteen-year period from 2008 to 2021 is 0.484; areas with low levels of GEGE account for approximately 66.7% of the country, and those with relatively high levels account for approximately 20% of the country; high-level green development areas account for 13.3% of the country; (2) environmental regulation’s impact on GEGE has a U-shaped relationship, which means that when the regulation intensity increases, GEGE will first decrease and then increase, and once it crosses the inflection point, the effect of improving GEGE becomes obvious; the elasticity coefficient of educational human capital is significantly negative, which has a hindering effect on GEGE; (3) FDI is significantly negatively correlated with GEGE; there is a U-shaped relationship between GEGE and urbanization, and the industrial structure has a negative effect on GEGE, while trade dependence has the same effect.

Decision Factors of Stakeholder Integration in Connected Construction for Circular Economics

The implementation of construction circular economics (CCE) will encourage higher green economic growth. The circular approach will be part of connected construction and is an approach that integrates processes and products from design to construction execution and then to the management of buildings, properties, and assets. Decision making for CCE involves many stakeholders who are involved in the entire connection process. In such situations, integration and negotiating support are needed. The aim of this study is to find the theoretical basis of decisions that allow stakeholders to share different preferences when selecting CCE options for the circular economic prototype of building systems. As a result, five dominant factors are obtained: the sustainability of the building system, energy efficiency, capture value creation, a high-level three-party consortia, risk allocation, and transfer. Each stakeholder has their own preferences, and these will determine the different priority of the alternatives to be selected. Finally, the priority of alternative choices is determined based on the connected construction process. A comparison of what is desirable for all stakeholders is the basis of choice before negotiations are carried out. Furthermore, negotiation automation can be achieved because in this paper, the satisficing algorithm is applied to the decision model and stakeholder integration. Optimal payoff and the best-fitting option based on coalition are important and interesting avenues for future research.

<p>Measuring Green Economic Growth in Mexico: National, State, and Geographic Region Levels Proposal</p>

The environmental (climate change), economic (recessions), and social (increase in poverty and inequality) crises have forced the need for a change of model and the development of global strategies to counteract their negative effects and orient towards a type of economy that is low in carbon emissions, efficient in the use of resources and energy, socially inclusive, preventive in the loss of biodiversity and ecosystem services and that allows achieving sustainable development, which is how the concept of green economy arises. With a quantitative approach, using official databases and based on the Organization for Economic Co-operation and Development (2011) green growth framework, a Green Economic Growth Index for Mexico was constructed under the relativization function, which was estimated at the national, state, and geographic region levels, allowing for a deeper understanding of the green economy in the country. The results show an average national performance (0.4746), with the dimensions "Economic, demographic and social context for sustainable development," "Environmental dimension of quality of life," and "Natural asset base" having the best scores, while the dimension "Productivity of environmental resources and the economy" and "Economic opportunities and policy response" have the lowest scores. The analysis of variance results shows statistically significant differences by geographic regions, which calls for developing public, environmental, energy, and productive policies that consider the particular conditions of the country's regions.

Exploring the role of information communication technology, trade, and foreign direct investment to promote sustainable economic growth: Evidence from Belt and Road Initiative economies

AbstractInformation communication technology (ICT) contributes to global social, political, and sustainable economic growth. In particular, ICT, foreign direct investment (FDI), and trade in green economic growth are imperative factor that contributes to the country's development. In this regard, this paper explores the relationship between ICT, FDI, and trade in green economic growth for a group of 53 Belt and Road Initiative (BRI) economies between 1990 and 2020. For empirical estimation, this study employs the generalized method of moment. Significantly, the results reveal that using ICT stimulates green economic growth in BRI countries by supporting the endogenous economic growth theory. The study shows claims that the interaction term of ICT with trade and ICT with FDI expedites the economic growth rate. Also, it reveals a positive and significant relationship between trade (exports and imports) and economic growth in BRI economies. It shows the positive and significant influence of ICT on FDI and its impact on economic growth in the long run. Further, it supports the positive effect of ICT on FDI inflows in the BRI economies. It concludes that more advancement in ICT can stimulate trade. Therefore, the BRI economies should further improve ICT as a profound tool that accelerates FDI inflows and stimulate trade for green economic growth.

Role of natural resources utilization efficiency in achieving green economic recovery: Evidence from BRICS countries

The main goal of this article is to evaluate and analyze the effect of natural resources utilization efficiency on green economic growth in 5 emerging economies (Brazil, Russia, India, China, and South Africa) in the BRICS group. The panel data approach is employed to estimate coefficients by calculating the resource activity coefficient and gathering annual data for 2000–2020. The major results confirm that natural resource utilization efficiency accelerates the green economic growth of BRICS countries. Moreover, the presence of an uni-directional causal linkage from resource utilization efficiency to green economic growth is concluded, meaning that in the short-term, natural resource utilization efficiency can cause green economic growth in BRICS economies. As practical policies, promoting green FDI to increase green technologies transfer, green financing to promote technological innovation, and implementing the principle of 3Rs (Reduce, reuse, recycle) are recommended.

Analysis of Green Economic Growth, Biofuel Oil Consumption, Fuel Oil Consumption and Carbon Emission in Asia Pacific

Analysis of Green Economic Growth, Biofuel Oil Consumption, Fuel Oil Consumption and Carbon Emission in Asia Pacific

Energy internet, digital economy, and green economic growth: Evidence from China

Taking the data of 30 provinces in China from 2006 to 2018, the spatial dynamic Durbin model is applied to exploit the influence of energy internet (EI) and digital economy (DE) on green economic growth (GEG). This paper confirms that: Not only does the GEG in the previous phase significantly contributes to the GEG in the subsequent phase, but the GEG in the local region also significantly contributes to the GEG in the adjacent area. EI and DE can significantly promote GEG, and their interaction term has a positive effect on GEG. A significant non-linear nexus is observed for the influence of the EI and the DE on GEG. Specifically, the impact of the EI on GEG is characterized by a non-linear single threshold with increasing positive marginal effects, while the impact of the DE on GEG is characterized by a non-linear double threshold that first inhibits and then promotes GEG.

Innovation Input, Climate Change, and Energy-Environment-Growth Nexus: Evidence from OECD and Non-OECD Countries

With economic growth and rising incomes, increasing consumption of fossil energy is leading to environmental pollution and climate change, which requires increased innovative inputs to promote the efficiency of renewable energy use. Considering the important impact of innovation input and climate change on renewable energy consumption, greenhouse gas emissions, and green economic growth, this study uses simultaneous equation and sys-GMM model to explore the dynamic nexus of innovation input, climate change, and energy-environment-growth in OECD and non-OECD countries, with panel data covering 2000 to 2019. The empirical results show that renewable energy consumption in non-OECD countries significantly promoted green economic growth, while OECD countries did the opposite. Moreover, renewable energy consumption significantly reduces greenhouse gas emissions caused by climate change, especially for OECD countries. When the level of economic growth exceeds a certain inflection point, greenhouse gas emissions begin to turn from positive to negative, which further verifies the EKC hypothesis. In addition, this study found that innovation input has significantly increased renewable energy consumption, reduced greenhouse gas emissions, and promoted green economic growth in OECD countries. Finally, this study also found that the impact of innovation input in OECD and non-OECD countries on the energy-environment-growth nexus is greater in the short term and more significant in the medium and long term, while the impact of climate change on the energy-environment nexus in OECD and non-OECD countries is more significant in the medium and long term.