Renewable energy and natural resource protection: Unveiling the nexus in developing economies

Environmental management and the circular economy: Analysing the role of environmental fiscal measures in promoting clean production and consumption in OECD countries

Pollution, material waste, and emissions cause environmental degradation. The public sector implements environmental interventions to reduce pollution and emissions and to make waste circular. Environmental fiscal interventions are crucial for reducing emissions, material waste, pollution, and unsustainable production and consumption. This study focuses on the role of environmental fiscal measures in promoting clean production and consumption in 22 OECD countries. Continuously Updated Efficient Generalized Method of Moments (CUE-GMM) and 2-step Efficient GMM methods are applied to panel data from 2000 to 2022. The empirical analysis reveals the positive impact of environmental protection expenditures, renewable energy adoption, and technological innovation on clean production and consumption. However, environmental taxes and credits to the private sector negatively impact and are ineffective and distortionary for the transition to clean production and consumption. The findings validate the public good theory that environmental protection expenditures promote clean production and consumption technologies. However, the Pigouvian tax theory is not valid for the OECD countries. This study suggests re-evaluating the existing environmental taxation framework. The findings imply that tax credits, environmental research and development expenditures, adopting renewable energy sources, and technology for green practices will promote responsible production and consumption in OECD countries.

Do circular innovations and carrying capacity of natural environment enhance circular economy in the European Union? Evidence from simulation and machine learning methods

The longevity of the natural environment is fundamental for sustainable production and consumption. The circular economy conserves natural resources, ensures sustainable production and consumption, and protects the natural environment. The role of circular innovations, particularly the carrying capacity of nature, is ignored in literature. This study analyses the impact of circular innovations and the carrying capacity of the natural environment on the circular economy for 27 European Union countries. Panel data from 2010 to 2022 were analyzed using simulation and machine learning methods. Empirical estimates revealed that circular innovations and resource productivity have been instrumental in propelling circular practices, while the carrying capacity of nature and per capita output have a detrimental impact. More specifically, the carrying capacity of the natural environment signifies potential threats to the adoption of circular practices. This study suggests that innovation in recycling technologies and reuse processes is mandatory for enhancing the adoption of circular practices. Furthermore, the European Union must limit the use of naturally occurring endowments and increase the use of recycled resources. Concludingly, this study provides unique insight into the sustainable and circular landscape in the European Union.

Investigating the biodiversity conservation capability of technological innovation and FinTech

Human activities, primarily economic growth, and technological innovation, threaten global biodiversity. This study utilizes 22-year panel data from 87 developing countries and a novel cross-sectional heterogeneous factor analysis-based financial technology index to investigate how economic growth, renewable energy consumption, technological innovation, natural resources, and financial technology affect biodiversity. To account for cross-sectional dependency, this study employed a Panel Autoregressive Distributive Lagged with Pooled Mean Group specifications within the Driscoll and Kraay standard error estimator. The findings revealed that the log of Gross Domestic Product (GDP) had an inverted U-shaped effect. Moreover, economic growth, renewable energy, and FinTech can improve biodiversity conservation. Traditionally, technological innovation and unregulated resource exploitation have posed threats to biodiversity. This study focused on responsible economic development and practical solutions to biodiversity threats posed by technological innovation and unrestrained resource use. FinTech can promote sustainable behaviors and divert funds from ecosystem-harming projects to biodiversity-friendly ones. Innovative financial instruments enable stakeholders to balance nature. This study demonstrates that FinTech, renewable energy, and responsible economic growth can help reverse biodiversity loss. We provide the policy implications of our research.

Paving towards the sustainable development goals: Analyzing the nexus of financial technology, business-centric-tourism, and green growth

The world is facing crucial challenges such as environmental degradation, social inequality, and slow economic growth due to the current transformative era. These challenges constitute a significant barrier to unlocking the world's full potential. In response, green growth has emerged as a focal point in global discourse due to the pivotal shift of legislators and researchers from conventional economic growth to sustainable and green growth. This research will examine the influence of financial technology and business-centric-tourism on green growth for a full panel of 148 worldwide economies and four different income-levels during the period spanning 2004-2021. The financial technology index comprises twenty-one enabling and integrated variables that capture the intersection between finance and technology. The two-step system GMM (Generalized Method of Moment) corroborated by the 2SLS (Two-Stage Least Square) method indicates that financial technology and business-centric-tourism endorse green growth for the world overall, while mixed results were observed at different income-levels. Moreover, energy transition, globalization, and business environment positively influence green growth, while it is negatively impacted by urban transition and socio-economic conditions. This study aligns its outcomes with the SDGs (Sustainable Development Goals) of 2030 and adds value to business literature on green growth by offering significant policy implications for achieving balanced and inclusive growth.

Analyzing the role of environmental policy innovations and natural resource management in driving circular economy forward: Evidence from BRICS economies

In understanding the dynamics of a circular economy, natural resources require careful management and mitigation strategies to prevent its detrimental effects on sustainable practices. Natural resource management and environmental policy innovations involve the balanced use and conservation of natural resources for sustainable and circular economic practices. This study analyses the impact of natural resource protection, natural resource depletion, and environmental policy innovations on circular economy using panel data from BRICS economies from 2000 to 2020. The study employed an Augmented Mean Group (AMG) and Common Correlated Effect Mean Group (CCEMG) econometric method along with cross-sectional dependence, 2nd generation unit root tests, heterogeneity, cointegration, and JKS Granger non-causality. Both econometric methods revealed that natural resource protection and environmental policy innovations accelerate circular economy practices. In contrast, natural resource depletion and non-renewable energy consumption decelerate the circular economy practices in the BRICS economies. Furthermore, the study found that natural resource depletion has a nonlinear impact, and higher depletion has the worst impact on the circular economy. Significant cointegration and causality have been observed. The study suggests natural resource conservation and transition to renewable resources to enhance the circular economy in BRICS economies.

Evaluating forest depletion and structural change effects on environmental sustainability in Pakistan: Through the lens of the load capacity factor

The pace of species extinction and deforestation has increased dramatically due to the substantial increase in global environmental degradation. This trend is approaching the crucial temperature threshold of 2 °C and calls for more attention. Although previous research has observed the individual impacts of forest depletion, structural change, economic growth, and urbanization on various sustainability outcomes, there has been no previous research into their interrelationships with an emphasis on the load capacity factor (LCF). Furthermore, no previous study has examined the environmental impacts of the abovementioned variables by contrasting the results of LCF and CO2 emissions in Pakistan. Therefore, this research suggests a theoretical framework that integrates these concepts, provides a roadmap for an effective and sustainable mitigation strategy for Pakistan and compares LCF results with CO2 emissions. Using the time-series data from 1970 to 2021, a unique and sophisticated dynamic Autoregressive Distributed Lag (DARDL) technique, the authors found that (i) a 1 % rise in forest depletion leads to a decline in load capacity factor by 0.026 %. (ii) A one per cent upsurge in structural change fosters environmental sustainability by raising the load capacity factor by 0.084 %. (iii) An increase of 1 % in economic growth dwindles the load capacity factor by 0.027 %. (iv) A one per cent surge in urbanization enhances the load capacity factor by 0.029 %. The findings suggest that Pakistan's Government should promote afforestation by emphasizing the constructive role of structural change in achieving environmental sustainability.