Green growth in the MENA region: How natural resource rents and financial development shape resource-rich and resource-poor economies?

Energy structure and investment efforts shaping green economic growth

Political considerations are becoming increasingly important in ensuring sustainable growth. This research has studied the roles of renewable energy consumption, energy efficiency, government effectiveness, and environmental regulation in fostering green economic growth in the G7 countries from 2000 to 2021. Using a Panel Autoregressive Distributed Lag (Panel ARDL) model, we employ three robust estimation techniques, Common Correlated Effects Mean Group (CCEMG), Augmented Mean Group (AMG), and Driscoll-Kraay Standard Errors (DKSE) to address challenges related to cross-sectional dependence and slope homogeneity. The major results confirm that, in the long run, increases in renewable energy use, improvements in energy efficiency, institutional effectiveness, and stringent environmental regulation significantly promote green economic growth. In contrast, short-run dynamics reveal transitional disruptions, particularly from renewable energy integration, efficiency restructuring, and regulatory compliance, that temporarily dampen output before convergence to equilibrium. Furthermore, country-specific AMG estimations reveal both convergence and divergence in policy impacts, underscoring the importance of national contexts in shaping green transition outcomes. These findings underscore the importance of cohesive, forward-looking policy frameworks that align economic and environmental priorities. By strategically integrating governance quality, targeted investment, and regulatory innovation, advanced economies can navigate transitional challenges while steering toward long-term green growth. Such integrated strategies are essential not only for mitigating adjustment costs but also for sustaining inclusive, resilient, and low-carbon development trajectories. • Renewable energy consumption and energy efficiency significantly promote green economic growth. • Government effectiveness and stringent environmental regulation strongly enhance sustainability outcomes. • Panel ARDL results confirm stable long-run cointegration among institutional and energy variables. • Short-run disruptions from energy transitions converge toward long-run environmental and economic gains. • Country-specific AMG estimates reveal heterogeneous policy impacts across G7 economies.

Frontier technology adoption and inclusive green growth in the EU: A double-edged sword?

Diagnosing structural interdependencies in the Green Growth Index: an integrated indicator framework for sustainability governance

Does the digital economy moderate the climate vulnerability-inclusive green growth nexus? International evidence

ABSTRACT While the role of urban greening as driver of gentrification in cities worldwide has been researched extensively, recent studies have pointed toward a more complex and ambivalent relationship between greening and gentrification. Empirical evidence has suggested that greening can sometimes be a consequence of gentrification, instead of a cause. Addressing ongoing efforts to disentangle the process of green gentrification, I focus on the role of the green growth machine. I argue that, rather than two distinctive processes, greening and gentrification are two sides of the same coin. My argument builds on two case studies of urban development projects in Switzerland, a country undergoing processes of densification, financialization, and gentrification similar to many other geographical contexts. Rather than identifying a linear relation between gentrification and greening, as previous quantitative studies have done, I rely on qualitative data to illustrate how the green growth machine produces both greening and gentrification. The article shows how ecological and densification agendas are conveniently combined by growth-oriented actors to “sell” urban growth, both economically and politically. Greening projects function as a sustainability fix, becoming instrumental to growth imperatives. I conclude by underlining the green growth machine as a key factor in the analysis of green gentrification.

ABSTRACT This paper examines the role of policy at multiple levels in green regional industrial path development. While existing research on green path development generally acknowledges the role of policy, less is known about how different policy levels interact. To address this gap, we develop a conceptual framework informed by global production networks and multilevel governance and explore the different roles that policy can play. We draw on a case study of the automotive industry in Gothenburg, the centre of the Swedish automotive industry. Our data includes interviews with key stakeholders, including major automotive companies, battery producers, and policymakers. The findings highlight the important role of supranational policy in shaping green path development in regions, primarily through regulations and directives. National policy serves as intermediary, bridging the gap between supranational directives and their local implementation by offering financial incentives, tax benefits, and research funding. At the regional level, policy is central for fostering interactive knowledge exchange, promoting new collaborations among automotive firms, battery producers, research institutes, and other actors. In conclusion, our analysis underscores the critical role of policy in the development of green growth paths and provides a more nuanced perspective on how different policy levels interact.

Ethiopia has committed to ambitious climate policies aiming to achieve net-zero emissions by 2050. Even though the benefits of a low-emission development pathway are higher than its costs, the latter are still very significant. Cumulative green investment and current expenditures of the country’s Long-Term Low-Emission Development Strategy (LT-LEDS) are estimated to be more than USD 300 billion until 2050, which raises the question of how the Government of Ethiopia can mobilize the finance required. By means of a new stock-flow-consistent model, this analysis shows that Ethiopia is able to finance the largest part of green investment out of its own means originating in the domestic banking system. About USD 27 billion in foreign currency, hence only a small share of total costs, are required for a certain period of time to bridge temporary balance-of-payments pressure in the course of high economic growth and ongoing structural change. Moreover, the simulation also shows that the net-zero emissions can be achieved with stable ratios of public and private debt, non-accelerating inflation, and employment.

Abstract The circular economy (CE) was originally promoted as a framework capable of reconciling economic growth with environmental protection, but scholarship is now divided between techno-optimist perspectives that interpret CE as a pathway to green growth and degrowth approaches that regard it as inherently post-growth. This paper employs a first-principles conceptual approach to examine the macroeconomic mechanisms linking circularity and growth. By grounding the discussion in basic economic identities and material flow logic, it clarifies how reductions in throughput affect economic output and material stock across scales. The argument demonstrates that CE is contractionary in principle but stabilizing in practice: when implemented fully and globally, it constrains GDP through declining material flows, while partial and incremental adoption within existing institutions enhances efficiency, resilience, and welfare without systemic disruption. The divergence between techno-optimist and degrowth positions thus reflects differences in temporal and analytical framing rather than opposing evidence. Both positions also recognize that the current economic system is environmentally unsustainable. The limitations of the CE discussed in this paper suggest that it should be understood as a bridge paradigm that maintains short-term stability and highlights the need for continued research into economic models that extend beyond CE and its growth-based foundations.

Achieving green growth through official accountability: The impact of administrative pressure on green innovation efficiency

Industry transfer and urban green growth: Asymmetric spillovers and nonlinear thresholds

This research examines the relationship between financial inclusion and green growth across 47 low- and middle-income countries from 2000 to 2024. Employing a mixed-methods design — combining two-way fixed-effects panel regressions with six in-depth country case studies — the study demonstrates that financial inclusion is a critical enabler of green economic transformation, not merely a poverty-reduction instrument. Empirical results reveal that a 10 per cent improvement in financial inclusion scores corresponds to a 6.8 per cent reduction in carbon intensity, a 4.3 per cent increase in community-level renewable energy adoption, and productivity gains of up to 23 per cent among micro-enterprises with access to green finance. Seven key transmission channels are identified, including green credit, climate-risk insurance, digital payments for clean energy, and financial literacy for sustainable consumption. Digital financial technologies significantly expand green-finance reach in underserved regions, while persistent gender inequalities continue to constrain inclusive green growth. The study recommends integrating environmental criteria into national financial-inclusion frameworks, developing tailored green microfinance products, and fostering multi-stakeholder collaboration. The estimated annual investment potential through inclusive green-finance mechanisms reaches USD 2.3 trillion by 2030 — a transformative contribution toward the Sustainable Development Goals and the Paris Agreement.

ABSTRACT Despite growing policy efforts toward sustainable development, the mechanisms through which artificial intelligence, institutional quality, and macroeconomic policy variables jointly shape green growth remain insufficiently understood in advanced economies. This study investigates the key determinants of green growth across the G7 economies from 2000 to 2023, employing a panel ARDL framework combined with wavelet‐based time–frequency analysis. The model incorporates AI research activity, renewable energy use, natural resource rents, government effectiveness, environmental taxation, and education expenditure. The findings reveal that AI research and renewable energy adoption serve as major engines of sustainable growth, whereas natural resource rents and education spending exert adverse long‐run effects, suggesting inefficiencies and misalignment between fiscal and environmental objectives. Distinct national patterns emerge: innovation‐oriented economies such as Germany, Japan, and the United States benefit from the synergy between digitalization and green investment, while more resource‐dependent economies face institutional barriers that slow their green transition. The study further illustrates how the integration of AI and institutional effectiveness can reshape policy frameworks. The results underscore the importance of data‐informed policymaking, education reform toward environmental competencies, and smarter environmental taxation, providing actionable insights for governments aiming to align technological innovation with ecological resilience in advanced economies.

The transition to a circular economy creates winners and losers, challenging the assumption that green growth is inherently inclusive. While environmental benefits are documented, the distributional consequences remain poorly understood. This study analyzes how socioeconomic and labor inequalities shape the effectiveness of circular economy policies. Using panel data from 90 countries (2019–2024) combined with global governance indicators, we employ fixed-effects models, instrumental variables, and configurational analysis (fsQCA) to identify causal mechanisms. The results reveal a critical institutional threshold: circular economy policies reduce inequality only in countries with high institutional quality (WGI > 1.39). In contexts with weak institutions or positive Skill Structure Balance (SSB), these policies are regressive. Social protection and digital financial inclusion moderate these effects, acting as buffers against distributional risks. These findings challenge the “automatic social benefits” narrative, suggesting that environmental ambition requires parallel investments in institutional capacity and human capital to achieve a just transition.

Type of the article: Research ArticleAbstractThe study examines the nexus between environmental tax revenues, renewable energy adoption, transport research and development expenditure, and green growth across EU-27 countries from 2000 to 2024. The study addresses the critical gap in understanding how fiscal environmental instruments and technological innovation in transport sectors contribute to sustainable development outcomes. Using panel data analysis, the paper employs cross-sectionally augmented autoregressive distributed lag (CS-ARDL) and method of moments quantile regression (MMQR) models to analyze both short-run and long-run relationships while accounting for cross-sectional dependence and heterogeneity. Results reveal that environmental tax revenues positively influence green growth with a long-run elasticity of 0.358, indicating that a 1% increase in environmental taxes enhances adjusted net savings by 0.358%. Renewable energy adoption demonstrates a stronger positive effect with an elasticity of 0.531 in the long run, while transport R&D expenditure exhibits a coefficient of 0.289, suggesting significant contributions to sustainable outcomes. The MMQR analysis demonstrates heterogeneous effects across quantiles, with stronger impacts observed at higher green growth levels. Cross-sectional dependency tests confirm significant spatial spillover effects among EU member states. The findings provide empirical evidence supporting the effectiveness of coordinated environmental fiscal policies and targeted innovation investments in transport sectors.

The shift towards a green economy presents substantial opportunities for inclusive and sustainable development. In the Kalyana Karnataka region of India, which has a historical backdrop of social backwardness and gender inequality, emerging women leaders, entrepreneurs, and skilled workers are increasingly engaging in environmental sustainability efforts. This study investigates the contributions of women to the green economy in Kalyana Karnataka and examines how their involvement fosters economic advancement, environmental stewardship, and social transformation. Drawing on gender and development theory, human capital theory, and sustainable development theory, this research aims to explore women’s economic and social contributions within this context. Findings indicate that women’s roles in organic farming, renewable energy production, waste management, and green enterprises enhance household incomes while promoting environmental accountability and community leadership. Initiatives within the green economy empower women to challenge traditional gender norms, thereby facilitating broader socio-cultural changes. Consequently, the authors advocate for policy measures that support leadership training, green skill development, entrepreneurial assistance with institutional collaboration, and gender- sensitive infrastructure based on these findings. Empowering women within the green economy not only promotes regional growth but aligns with national and global sustainable development objectives by highlighting the interdependent nature of gender equality and environmental sustainability. This paper contributes to a deeper understanding of women’s transformative impact on green economic growth while offering practical strategies for policymakers, development agencies, and local communities in Kalyana Karnataka as well as similar regions.

Purpose: The aim of this study is to empirically analyze the socio-economic determinants of green growth in EU countries from a holistic perspective. Green growth is defined as the dependent variable, while per capita carbon emissions, per capita income, energy consumption, and human development are defined as independent variables. In this study, the effects of these variables on green growth were measured using annual data from the period 2010-2023.Methodology: In order to reveal the economic and social determinants of green growth, panel data analysis methods such as fixed effects, random effects and Hausman methods were used.Findings: It is concluded that human development has a positive and statistically significant effect on green growth, whereas per capita energy consumption has a negative impact on green growth. Green growth was found to have a positive and significant impact on per capita income, but no statistically significant effect was found between carbon emissions and green growth.Originality: In the literature, there are very few empirical studies that address the economic and social determinants of green growth from a holistic perspective, define green growth as the dependent variable, and use Global Green Growth Index data. This study empirically reveals the determinants of green growth and offers policy recommendations for designing green growth policies.

Amid global carbon neutrality and sustainable development goals, and China’s transition toward high-quality green and sustainable growth, this study investigates how the Green Credit Policy (GCP) influences the sustainable innovation performance of high-polluting firms. Using Chinese A-share listed firms from 2007 to 2019 and a difference-in-differences (DID) design, we exploit the implementation of the GCP as a quasi-natural experiment to assess its long-term sustainability effects on corporate green transformation. The results reveal that while the GCP significantly promotes symbolic green innovation associated with regulatory compliance, it does not substantially enhance substantive green innovation, raising concerns about the effectiveness of green finance in fostering authentic and high-quality sustainability-oriented innovation. Further analysis shows pronounced heterogeneity across firm types. State-owned enterprises (SOEs) and large firms exhibit improvements in substantive green innovation, thereby contributing more effectively to long-term environmental sustainability and green transformation, whereas non-SOEs and small firms experience tightened financial constraints that crowd out R&D investment, ultimately undermining their sustainable innovation capacity. A series of robustness tests confirms the reliability of these findings. Overall, this study advances the literature on green finance and corporate sustainability by revealing firms’ strategic compliance behavior under sustainability-oriented financial regulation, highlighting uneven sustainability outcomes across firm types, and offering policy implications for refining green credit mechanisms to better support genuine green innovation and long-term sustainable development.

Electronic waste (e-waste) has become the fastest-growing waste stream globally, presenting complex environmental and regulatory challenges that are particularly evident in higher education institutions. In Malaysia, public universities are significant contributors to e-waste generation due to their extensive reliance on information and communication technologies, laboratory equipment, and administrative devices. Although regulatory frameworks, such as the Environmental Quality (Scheduled Wastes) Regulations 2005, exist, current practices in universities remain fragmented, focusing largely on asset disposal under Ministry of Finance guidelines and neglecting gaps in behavioral, infrastructural, and policy integration. This study introduces the Unified Green E-waste Management Framework (UGEMF), a holistic model specifically designed for Malaysian public universities. The framework was developed through qualitative methods, including document analysis, in-depth interviews with key stakeholders, and a review of institutional practices, regulatory documents, and best-practice case studies. The findings highlight barriers, including limited awareness, bureaucratic constraints, and the absence of institutionalized policies, while also identifying emerging best practices, such as refurbishment initiatives, decentralized collection points, and cross-sector collaborations. By operationalizing circular economy principles within the higher education context, UGEMF contributes theoretically to sustainability and waste management literature, while offering practical guidance for policymakers and administrators. Its adoption can transform e-waste management in Malaysian public universities from fragmented compliance processes into comprehensive, integrated sustainability strategies. This approach supports national green growth targets and sustainable campus development.