International Journal of Energy Economics and Policy
International Journal of Energy Economics and Policy (IJEEP) is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of energy economics, energy policy and related disciplines. The journal has a worldwide audience. The journal's goal is to stimulate the development of energy economics, energy policy and related disciplines theory worldwide by publishing interesting articles in a highly readable format. ISSN: 2146-4553 2024 CiteScore: 3.4 37/78: General Energy (Scopus®) 81/284: Economics, Econometrics and Finance (Scopus®) Ranking: 2024 SJR: 0.343 Editorial Board: 51 members from 26 countries/regions
Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Determinants of Financial Hedging Strategies among Commodity Producer Firms in Latin America
This study investigates the determinants of hedging practices among commodity-producing companies in Latin America. The economic significance of the extractive sector in the region makes understanding firms' hedging decisions and their impact on firm value highly relevant. The findings reveal several key insights. Firm size, leverage, and commodity prices are important factors consistent with prior research. Additionally, the region's exchange rate exposure means that firms' acquisition of US dollar-denominated debt is a significant determinant of their hedging activities, as well as the firms’ access to the international markets. Notably, the type of ownership also significantly impacts hedging, as state-owned firms are more likely to hedge to reduce volatility in their revenues for the case of oil-firms. In contrast to the limited research on Latin American extractive firms, an extensive literature has explored hedging strategies in developed countries' extractive companies. This study aims to address the gap by investigating the determinants of hedging practices among commodity-producing companies in Latin America and their impact on firms' value.
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Financial Development and Renewable Energy Investment in MENA Countries: A Panel DOLS and Granger Causality Approach
This study investigates the long-run relationship and causal linkages between financial development and renewable energy investment in 10 Middle East and North Africa (MENA) countries over the period 2000–2023. Using a Panel Dynamic Ordinary Least Squares (DOLS) approach and Dumitrescu–Hurlin panel causality tests, we examine whether deeper and more liquid financial markets translate into greater renewable energy investment. The empirical results reveal a statistically significant negative long-run effect of financial development and foreign direct investment on renewable energy investment, suggesting that financial and foreign capital flows in the region remain predominantly oriented toward conventional energy sectors. Conversely, money supply exhibits a positive and significant influence, implying that domestic liquidity expansion supports renewable energy financing. The causality analysis confirms a bidirectional causal relationship between financial development and renewable energy investment, highlighting a feedback loop between the two variables. These findings suggest that aligning financial market development with renewable energy policy objectives, reorienting FDI flows toward green projects, and leveraging domestic liquidity can accelerate the energy transition in MENA economies.
Digitalization and Sustainable Development: The Impact of Energy-Efficient Agricultural Machinery on Agro-Industries in Russia and Kazakhstan
This study analyzes how digitalization and energy-efficient agricultural machinery influence sustainable development, focusing on resource management and ecological integrity in Russia and Kazakhstan's agro-industrial sectors. Using data from 2000 to 2020, the research employs advanced econometric methods, including the CS-ARDL model, Pesaran CSD tests, and Westerlund Cointegration analysis, to address regional interdependencies and non-normal data distributions common in resource-rich economies. Results show that Technology and Innovation in Eco-Policies (TAIEP) and Green Agricultural Innovations (GAEI) significantly drive the Eco-Sustainable Development Index (ESDI). While Economic Green Development (EGD) is progressing, the shift to renewable energy (CREI) faces challenges from high capital costs and reliance on traditional fuels. The findings highlight the importance of digitalization for achieving sustainable development goals in Eurasia. This research introduces the “Sustainalism” model, integrating energy digitalization and agricultural machinery in mineral-supply-driven economies, and provides a strategic roadmap for decoupling industrial growth from environmental degradation.
Revisiting the Finance-Environment Nexus: The Joint Role of Remittances and FDI in Sustainable Development
This study examines the influence of remittances, imports, household consumption, renewable energy consumption, financial development, globalization, and institutional quality on environmental sustainability in major remittance-receiving economies. Environmental degradation is assessed through CO₂ emissions and the ecological footprint, allowing for a comprehensive evaluation of both emission intensity and ecological pressures. Utilizing annual data and advanced panel econometric methods, this analysis addresses cross-sectional dependence, slope heterogeneity, persistence, and endogeneity. The empirical framework integrates Cross-Sectionally Augmented ARDL (CS-ARDL) for baseline long- and short-run dynamics, robustness checks using Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG), dynamic Generalized Method of Moments (GMM) estimators, and asymmetric nonlinear ARDL specifications. Additionally, Panel Quantile Regression with Method of Moments (PQR-MM) was employed to capture heterogeneous effects across the distribution of environmental outcomes. The results indicate that remittances contribute to environmental improvements, although the magnitude varies between positive and negative shocks, confirming asymmetric effects. Renewable energy consumption consistently mitigates environmental degradation across specifications. Conversely, imports, household consumption, financial development, and globalization exacerbate ecological pressures, whereas institutional quality plays a crucial moderating role in reducing adverse environmental impacts. The quantile estimates reveal the stronger effects of remittances, renewable energy, and governance at higher levels of environmental stress, emphasising the importance of policy targeting in heavily affected economies. These findings underscore the interplay between financial flow, governance, and energy use in global sustainability. This study contributes to the literature on globalization by illustrating how remittances and institutional frameworks can transform global integration and financial expansion into opportunities for ecological resilience, aligned with international climate and development agendas.
Leveraging FinTech-Driven Financial Inclusion and ESG Integration to Advance Affordable and Clean Energy Access
The paper discusses how digital financial inclusion powered by financial technology and incorporation of environmental, social, and governance principles into finance can hasten the achievement of Sustainable Development Goal 7. We provide a systematic literature review, which relies on peer-reviewed literature in energy economics, sustainable finance, and development literature. Our search and screening strategy is informed by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The analysis shows that financial inclusion, which is promoted by FinTech (e.g. mobile banking, digital lending, and crowdfunding) has increased access to energy (e.g. pay-as-you-go solar, microfinance to clean cooking) especially by underserved communities in Asia, the Middle East and Africa. At the same time, the ESG consideration in financial decision-making is directing investments to renewable energy and energy efficiency initiatives. We discover that digital platforms and blockchain-based tools increase the levels of ESG data transparency and integrity, and strengthen the confidence of investors in green energy ventures. Nonetheless, it is also evidenced that financial inclusion should be accompanied with the introduction of clean energy to prevent the need to emit more carbon into the air through the consumption of additional energy. Our research gaps are household-level behavior, ESG adoption in developing markets and FinTech governance. Government and industry policies like subsidizing energy delivery through digital payments and requiring ESG reporting of FinTech companies will have the effect of making digital finance and sustainability agendas mutually reinforcing. All these points highlight the cross-cutting enabling nature of FinTech in sustainable energy shifts and the need to collaborate interdisciplinarily to utilize digital finance to achieve global clean energy targets.
Dividend Decisions in US Oil & Gas: Insights from the Upstream Sector
The purpose of this study is to analyse the determinants of dividend policy within the North American Oil and Gas (O&G) sector. Given the industry’s critical role in the global energy landscape and its reputation for stable dividend payments, the research aims to identify the factors influencing dividend decisions and to examine the relevance of traditional dividend theories in this context. The study employs a panel data approach using a sample of 91 independent O&G companies operating in North America between 2006 and 2023. A random effects model is applied to assess the relationship between dividend payout ratios and explanatory variables, including Brent oil prices, risk, and leverage. The analysis also tests the applicability of life cycle, stakeholder, and free cash flow theories in explaining dividend behaviour within the sector. The empirical results show that Brent oil prices exert a positive and significant influence on dividend policies, confirming the industry’s sensitivity to commodity price cycles. Traditional theories such as life cycle, stakeholder, and free cash flow models are validated for the first time in the North American O&G context. Conversely, risk and leverage exhibit a negative relationship with dividend payouts, underscoring the importance of financial stability in sustaining shareholder returns. This research contributes to the literature by providing one of the most comprehensive empirical assessments of dividend policy determinants in the North American O&G industry. It bridges theoretical perspectives with sector-specific realities, offering new evidence on how commodity prices and financial structure jointly shape dividend decisions. The findings offer valuable insights for investors, policymakers, and corporate managers seeking to optimize dividend strategies and anticipate payout behaviour in response to market dynamics.
Unveiling Research Trends in Green Finance in the Age of ESG: A Comprehensive Bibliometric Analysis and Future Research Agenda
Green finance has grown significantly over the past thirty years, with the primary aim of protecting the environment and effectively addressing the challenges of climate change through a variety of innovative financial mechanisms and strategies. The present study is designed to conduct a comprehensive bibliometric analysis with the explicit aim of identifying the academic development and diffusion of green finance within the academic community. The literature studied covers the period 1993-2023 from the Scopus database. The results show that the main research topics in this area include the regulation of green credit, the impacts and outcomes of green finance, and strategies for its development. These findings provide insights into green finance research in line with the suggested research trends. Moreover, they identify avenues for future research and provide original insights for managers, investors, and policy-makers to re-compose the climate finance puzzle.
The Nexus of Energy, Finance, Governance and Remittances with Economic Complexity and Ecological Footprints in SAARC Economies
This assessment delves into the intensity of SAARC's government effectiveness, financial development, renewable energy, remittances, and GDP on the country's ecological footprint and economic complexity. Data applied to the economic complexity (EC) and ecological footprint (EFP) model covers 1995–2021. Judging by the Discoll-Kraay Standard Error analysis, financial development itself and its indices, including financial Institutions and the financial market amplifies ecological footprint and economic complexity in the SAARC economies but unfortunately, elevation of ecological footprint is undesirable for the environment. Nevertheless, the economic complexity and ecological impact of SAARC are being heightened by government effectiveness, remittances, and GDP. Renewable energy increases economic complexity, despite its reduced EFP. Moreover, the interactions among government effectiveness, remittance and financial development have a positive influence on the both models. Evidently, the validity and credibility of the findings are confirmed by the Panel-Corrected Standard Errors (PCSE) and Feasible Generalized Least Squares (FGLS) model. The authority should continue stable financial institution and market, proper allocation of remittances, effective government duties to make sustainable economic enhancement.
ESG Integration and Cost Efficiency Assessment: Evidence from GCC Banking
This research examines the impact of Environmental, Social, and Governance (ESG) factors on cost-efficiency in GCC commercial banks over the period 2018-2022. The analysis employs a two-step Stochastic Frontier Analysis (SFA), followed by panel data Generalized Least Squares (GLS) regression, and covers a sample of 48 banks. Baseline results indicate that environmental and governance factors are associated with higher cost inefficiency, while social factors have no significant effect. Further analysis reveals that social and governance factors become efficiency-enhancing under strong institutions. ESG initiatives increase costs in the short to medium term when ESG scores are low, unless they are strategically integrated into core operations. Inefficiency also arises with higher NPLs, capital reliance and weaker governance during the COVID-19 crisis. This research highlights the context-dependent effects of ESG practices on bank efficiency in the GCC region.
The Impact of Climatic Factors on Grain Crop Yields in Uzbekistan
This article is dedicated to analyzing the impact of climate change on grain crop yields in Uzbekistan between 1991 and 2023. The main objective of the work is to establish how temperature fluctuations and precipitation affect the short-term and long-term yield dynamics. The study used the ARDL econometric model, which allows us not only to identify short-term changes but also to track how yield indicators adjust over time. To determine the reliability of the model results, stability tests were conducted using the Augmented Dickey-Fuller and P-P tests, which allowed for the use of both source and transformed data. The model results indicate that temperature has a positive effect on yield both in the short and long term. The impact of precipitation in the short term is not statistically significant; however, its lagged effect is negative. That is, a high level of precipitation in the previous year may adversely affect yield in the following year. In the model (ARDL 1,0,1) selected by the BIC criterion, the delayed temperature value is not included, but the main effect is retained. The model selected under the AIC criterion (ARDL 1,1,1) gives a more accurate result as it also includes the delayed temperature effect, although it is shown not to be statistically significant. This study contributes to the existing body of literature by using this model which analyse the short-run and long-run relationships between different time series variables. The originality lies in that the results of the ARDL model based on two different scenarios in studying the impact of climatic factors on grain crop yields in our country, as well as their validation using a number of diagnostic tests, fully meet all requirements for all criteria. On this basis, it is possible to fully utilise this model. The findings of this study hold significant practical value for policymakers anf agricultural economists in Uzbekistan. Under the conditions of global climatic changes, the wide use of econometric research methods in the study of agricultural production processes will contribute to decision-making on sustainable development of the agriculture and achievement of high efficiency.
Exploring the Dynamics among Eco-friendly Vehicles, Sustainability, and Consumer Purchasing Behavior
This study explores the impact of sustainability perceptions of environmentally friendly vehicles on individuals' purchasing decisions using a quantitative research methodology. Data were collected through a survey conducted in Turkey in May and June 2025, yielding 419 valid responses. The survey comprised four sections: demographic information, Sustainability Awareness Scale, Sustainable Consumption Behavior Scale, and Purchase Behavior Scale. Initially, confirmatory factor analysis (CFA) indicated that the sustainability awareness and sustainable consumption behavior scales were not statistically suitable. Consequently, exploratory factor analysis (EFA) was conducted, resulting in a revised one-dimensional "Sustainability Scale" and a 15-item Sustainable Consumption Behavior Scale with three subdimensions: "Sustainable Awareness," "Saving," and "Reuse." Path analysis, performed through structural equation modeling, examined the relationships between these variables. The analysis revealed that sustainability awareness significantly influences all dimensions of purchasing behavior, while the reuse dimension of sustainable consumption behavior impacts all subdimensions of purchasing behavior. However, the savings dimension only affects word-of-mouth communication, while environmental awareness only affects the willingness to pay more. The study’s findings contribute to understanding how sustainability perceptions shape consumer behavior, offering insights for marketing strategies aimed at promoting environmentally friendly vehicles.
From Energy to Information: Green Knowledge Production Function in Fragile Five Economies
Climate change and sustainable development goals make green energy (the development of environmentally related technologies) the main determinant of economic growth in the Fragile Five economies. In this study, the determinants of green innovation in the Fragile Five economies (Brazil, India, Indonesia, South Africa, and Turkey) during the period 2002–2020 are examined through panel data analysis. The empirical findings show that in the short run, increases in output encourage demand-driven innovation. In the long run, however, fixed capital investments, the stringency of environmental policies, and the level of human capital are indicated to be effective on green innovation. While in India, income growth and fixed capital investments feed innovation, in the Turkish economy, energy efficiency and renewable energy investments provide support. In Indonesia and South Africa, human capital strengthens the capacity for knowledge absorption and supports innovation. In Brazil, on the other hand, due to income growth being directed towards traditional energy-intensive sectors, the green innovation process slows down. According to the empirical findings, the stringency of environmental policies may suppress green innovation in the short term by increasing compliance costs, but in the long term, in line with the Porter hypothesis, it may stimulate green innovation. For these reasons, in the Fragile Five economies, it is necessary to direct physical capital toward green technologies through green financing instruments and to reduce firms’ compliance costs with predictable environmental policies.
How Renewable Energy Consumption Affects Economic Growth in ASEAN: The Role of Banking Sector
This study investigates the impact of renewable energy consumption on economic growth in ASEAN countries and the moderating role of banking sector development during the period 2000–2022, using a Multi-way Fixed Effects (MWFE) regression model. The empirical results show that renewable energy consumption has a negative impact on economic growth in ASEAN. However, this relationship becomes less negative due to the moderating effect of banking sector development. The study also finds that internal conditions within ASEAN countries have contributed to the inverse effect of renewable energy consumption on economic growth. This study is the first to examine the regulatory role of bank development in the relationship between renewable energy consumption and economic growth. Based on these findings, the authors explain the underlying causes and suggest several solutions to promote renewable energy development in the region.
The Influence of Corporate Governance Dimensions on Carbon Emission Disclosure: The Mediating Role of Financial Performance
This study aims to investigate how corporate governance dimensions (board size, board nationality diversity, and institutional ownership affect carbon emission disclosure (CED) among publicly listed firms. Additionally, this research examines the mediating role of financial performance, measured by return on assets (ROA), in the relationship between corporate governance mechanisms and the level of carbon emission disclosure. The population of this study consists of energy sector companies that are listed on the IDX from 2020 to 2024. The analysis method used was panel data regression analysis with the help of Eviews-12 software. The results are expected to show that effective corporate governance, characterized by larger board size, higher nationality diversity, and greater institutional ownership-positively influences the extent of carbon emission disclosure. Financial performance (ROA) is anticipated to mediate this relationship partially, indicating that well-governed firms achieve superior profitability, which in turn enhances transparency in environmental reporting. This study integrates the corporate governance mechanism and financial performance pathway into a unified framework to explain firms’ carbon transparency behaviour. This research provides new empirical evidence from an emerging market context, highlighting how corporate governance dimensions drive voluntary carbon disclosure through financial outcomes. The study extends legitimacy and stakeholder theory by revealing that profitability serves as both a performance signal and a legitimacy tool in environmental communication. The findings contribute to global discourse on ESG integration and governance-driven sustainability disclosure.
Artificial Intelligence-Driven Financial Strategies for Renewable Energy Transition: A Cross-Country Analysis of Efficiency, Investment, and Policy Implications
An integrated empirical framework was put in place in order to study the combined impacts of artificial intelligence (AI), green finance (GF), and tools of environmental policies on renewable energy investments and their efficiency on a global scale. The hybrid approach of combining econometric estimators i.e. two-way fixed effects, System-GMM, Mean/Pooled Mean Group and Dynamic Common Correlated Effects was employed with Explainable machine learning (XGBoost with SHAP) to assess the model. For the period of the 2005-2024 study, a balanced macro panel composed of 30 OECD and emerging economies was utilized, and it was assessed that with regard to AI readiness, most of the time it acted as a complementary catalyst, augmenting the effectiveness of finance and policies, rather than an autonomous driving force. In the framework of AI intensity and carbon pricing, AI appears with a negative sign in the short run, which unfolds as transitional adjustment costs. These results are reversed when the interaction terms GF×AI and Policy×AI are included; these terms are positive and statistically significant, meaning that an increase in digital capacity strengthens policy transmission. System-GMM results confirmed persistent investment dynamics through significant lag dependence, and the sign pattern for core variables was preserved in robustness checks (DCCE/MG/PMG). On the efficiency margin, green bonds exhibit a positive association, whereas short run AI and carbon price frictions remain. The SHAP diagnostics confirm the econometric findings and consider investment inertia and the pressures of transitions (emissions and fuel prices) as key contributors, while AI works with context-dependent complementarities. To conclude, the digital governance with the type of green-finance and the reliable policies in place will promote investment in renewables and improve energy efficiency.
Testing the Carbon Hysteresis Hypothesis in Azerbaijan: Evidence from Nonlinear Unit Root Tests
This study investigates the validity of the Carbon Hysteresis Hypothesis (CHH) in Azerbaijan by employing advanced nonlinear time-series econometric techniques. Using annual CO₂ emissions data from 1901 to 2022, sourced from the Global Carbon Project and Our World in Data, the analysis begins with Harvey (2007) and Harvey et al. (2008) linearity pre-tests, which confirm the nonlinear nature of the emissions series. This finding justifies the application of nonlinear unit root tests—Kapetanios, Shin, and Snell (KSS, 2003), Sollis (2009), and Kruse (2011)—over conventional linear approaches such as ADF(1981), PP(1989), and KPSS(1992). The empirical results consistently fail to reject the null hypothesis of a unit root across both symmetric and asymmetric specifications, indicating that Azerbaijan’s CO₂ emissions follow a non-stationary process and that carbon hysteresis is present. This persistence suggests that shocks—whether from economic expansion, external crises, or policy interventions—have permanent effects on emissions levels. The study aligns with existing evidence from other oil-exporting economies and highlights the structural challenges of decarbonization in hydrocarbon-dependent contexts. Based on these findings, the paper proposes a set of policy recommendations aimed at long-term decarbonization, renewable energy integration, industrial modernization, and regulatory strengthening, contributing to both the empirical literature on carbon hysteresis and the design of sustainable climate policies.
The Interrelationships among Transportation Services, Exports, Renewable Energy Consumption, Industrial Production, and Economic Growth: A Dynamic Panel Data Approach in BRICS Countries
This study examines the relationships between transportation services, exports, renewable energy consumption, industrial production, and economic growth using data from BRICS countries (Brazil, Russia, India, China, and South Africa) for the period from 1994 to 2023. After assessing cross-sectional dependence and the stationarity of the data series, a dynamic panel data analysis was conducted. The results of the Hausman test confirmed the validity of the random effects model. The findings reveal that exports, industrial production, and renewable energy consumption have positive and statistically significant effects on economic growth. This indicates that enhancing production capacity and increasing the use of renewable energy contribute to long-term growth. Conversely, while the impact of transportation services on growth is positive, it was not statistically significant, suggesting that the effects of the transportation sector on economic growth are indirect and manifest over time. When analyzing country-fixed effects, it was found that economic growth is above the panel average for China and India, while it falls below the average for Brazil and Russia. In conclusion, the study suggests that a growth model focused on renewable energy, production, and exports is the most suitable approach for sustainable economic development in BRICS countries.
Balancing Growth and Sustainability: The Role of Manufacturing and Renewable Energy in CIVETS Countries
This study investigates the relationship between renewable energy consumption, manufacturing value added, CO₂ emissions, and economic growth in CIVETS countries – Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa – from 2005 to 2020. Using panel data techniques (common, fixed, and random effects models), the results reveal that manufacturing significantly and positively affects GDP growth, confirming its role as the primary driver of economic performance in emerging economies. Conversely, CO₂ emissions exert a negative but marginal influence on GDP growth, indicating that higher emissions may hinder sustainable economic expansion. Renewable energy consumption, although showing a limited short-term impact, demonstrates potential to contribute to long-term inclusive growth once effectively integrated into industrial structures. These findings emphasize the need for policies promoting green industrial transformation, investment in clean technologies, and enhanced renewable energy integration to achieve balanced growth and environmental sustainability. The study offers empirical evidence to support policy design in emerging economies pursuing the dual objectives of industrial competitiveness and carbon neutrality.
Carbon Emissions and Economic Drivers in Kalimantan: New Evidence from ARDL Bounds Testing
This study investigates how deforestation, economic growth, and trade openness affect carbon emissions in Kalimantan, Indonesian by using the Environmental Kuznets Curve (EKC) framework. The present study applies the ARDL bounds testing approach with quarterly data spanning from 2015Q1 to 2024Q4. The results show that all three selected parameters are significantly influence carbon emissions in Kalimantan. Deforestation increases emissions, while higher income and greater trade openness reduce carbon emissions. The findings show an inverted U-shaped relationship between income, trade openness, and carbon emissions, confirming the EKC hypothesis is valid in the present study. Environmental degradation rises in the early growth phase but declines once income reached a certain threshold level. The study also finds that cleaner energy and foreign direct investment (FDI) are crucial for improving environmental quality. Trade openness attracts FDI, boosts productivity, and supports advanced technology shared by the importing countries. The empirical outcomes suggest that the government can promote adoption of green technology, sustainable land use, and international trade cooperation between the countries. Strengthening global collaboration helps accelerate technology transfer and reduce environmental harm to the nation. These efforts align with the Sustainable Development Goals (SDGs) to combat the climate change for the long-term sustainability growth. This paper contributes to the limited literature on how deforestation, income and trade openness in reducing carbon emissions in Kalimantan.
Decoupling Growth from Fossil Fuels? Energy Consumption and Structural Transformation in the GCC
The current study has tried to explore the impact of both renewable as well as non-renewable energy consumption on some of the crucial economic determinants like economic growth, export diversification, trade openness, and human capital in the GCC countries during the time period between 1990-2022. The most relevant second-generation panel econometric techniques, incorporating panel unit root tests, cointegration analysis, Fully Modified Ordinary Least Squares (FMOLS), and quantile regression, have been used. The comprehensive empirical analysis reveals that the consumption of renewable energy is quite significantly impacted by structural variables like trade openness and human capital, while on the other hand, non-renewable energy consumption is principally driven by short-run macroeconomic fluctuations, predominantly GDP and export diversification. The findings of this study highlight the importance of strategic policy realignment in the GCC to promote a sustainable energy transition by investing in human capital, enhancing trade openness, and decoupling economic diversification from carbon-intensive sectors. This paper further offers quite critical insights into the nexus between energy and economy and provides actionable policy recommendations for achieving long-term economic as well as environmental sustainability in fossil-fuel-dependent economies.
The Role of Green Economy in the Sustainable Development of Agro-Industrial Complex: Evidence from Uzbekistan
This study investigates the impact of green economy factors on the sustainable development of Uzbekistan’s agro-industrial complex using annual data from 1991 to 2024. The analysis focuses on key determinants such as electricity consumption, mineral fertilizer use, inflation, and renewable energy production, with the food production index serving as the dependent variable. Applying the Autoregressive Distributed Lag (ARDL) model, both short- and long-run relationships were examined. The results demonstrate that renewable energy production and rational fertilizer use significantly enhance food production in the long term, while inflation exerts a negative influence, undermining production sustainability. Electricity consumption, however, showed no statistically significant long-run effect, highlighting that resource efficiency and diversification of energy sources are more crucial than total consumption. These findings underscore the strategic importance of green economy principles in strengthening food security, reducing environmental risks, and ensuring the resilience of the agro-industrial sector in Uzbekistan. The study provides empirical evidence to support policy measures aimed at expanding renewable energy use, promoting sustainable fertilizer management, and curbing inflationary risks to achieve long-term agricultural sustainability.
Exploring the Causal Relationship between Total and Renewable Energy Consumption, Agricultural Growth, and CO2 Emissions: A VAR-Based Analysis of Kazakhstan’s Path toward Sustainable Development
This study investigates the dynamic interplay among agricultural growth, total energy consumption, renewable energy penetration, and CO₂ emissions in Kazakhstan, using annual data for 2001-2024. Augmented Dickey-Fuller diagnostics classify all series as I(1), and information criteria favor a parsimonious VAR(1). Variance decompositions indicate that agricultural growth is primarily driven by own shocks, with a growing medium-horizon contribution from CO₂. Total energy use remains largely self-propelled, accompanied by modest spillovers from agriculture and a gradual feedback from emissions. The renewable share increasingly reflects movements in total energy demand at longer horizons, while agriculture contributes a smaller but persistent portion; the direct role of CO₂ in renewable dynamics is negligible under orthogonalized innovations. Emissions variability is governed chiefly by shocks to aggregate energy demand and by own persistence. Pairwise Granger tests uncover a single predictive channel - total energy use Granger-causing the renewable share - whereas other pairs do not exhibit short-run directionality at conventional thresholds. Taken together, the evidence portrays a demand-led nexus in which aggregate energy conditions steer near-term adjustments, agricultural performance reflects internal dynamics and environmental pressure, and emissions co-move with energy demand. The findings underscore policy relevance for demand management, grid integration with bankable procurement of renewables, and climate-smart upgrades in irrigation and inputs.
Renewable Energy and Economic Growth: Investigating Their Effects on Carbon Emissions in ASEAN Countries
This study investigates the relationship between renewable energy adoption, economic growth, and carbon emissions in ASEAN countries, focusing on the potential for sustainable development. ASEAN, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, has seen significant economic growth, resulting in increased energy consumption and higher carbon emissions. The reliance on fossil fuels has raised concerns about environmental sustainability. This research employs a panel data analysis approach, by utilizing data from the period of 1990 to 2020 to explore the effects of renewable energy and economic growth on carbon emissions. The study uses a dynamic heterogeneous panel regression model (Panel ARDL) to capture the long-term and short-term dynamics between the variables. Findings reveal that renewable energy consumption has a positive but non-significant impact on carbon emissions in the long term, contradicting expectations that renewable energy reduces emissions. Economic growth similarly shows a positive but non-significant impact on carbon emissions in the long term. The study's results align with some previous research while challenging others, highlighting the complex and varied nature of these relationships. The research underscores the need for strategic policy interventions and coordinated efforts to balance economic development with environmental sustainability in the ASEAN region. Future research should focus on optimizing renewable energy policies and assessing the socio-economic benefits of transitioning to a low-carbon economy. The insights provided aim to inform policymakers and stakeholders on strategies for achieving sustainable development while fostering economic growth in one of the world's most dynamic regions.
Oil Dependence, Economic Diversification, and Economic Growth in GCC Countries: A New Composite Index and PMG–ARDL Evidence
This paper constructs and applies a Composite Economic Diversification Index (CEDIX) to quantify the impact of economic diversification on economic growth in oil-dependent GCC economies during the period 2000–2022. In constructing CEDIX, the export, sectoral, and fiscal dimensions are combined by using principal component analysis. Estimation of the diversification-growth nexus was done through the PMG-ARDL specification. Furthermore, second-generation panel tests, the Pesaran CIPS unit-root test, and Westerlund's ECM cointegration test were implemented, and their results supported the long-run equilibrium of variables. Baseline controls are real Brent oil prices, investment, and labor. Results from the PMG estimation showed that diversification has a positive and statistically significant long-run effect on growth. The speed of adjustment to equilibrium is fast. As would be expected from reform gestation lags, the short-run effects of diversification remain modest, while investment and oil prices are the factors shaping the cyclical movements. A fixed-effects ECM estimated with Driscoll-Kraay standard errors was considered for robustness checking and also supports the sign and significance of our main findings. Therefore, policy should give priority to promoting non-oil exports, sectoral upgrading beyond hydrocarbon markets, and fiscal rebalancing in transforming oil windfalls into durable diversified growth.
Exploring Corporate Environmental Performance Assessment: A Bibliometric Analysis of Global Research Trends
Environmental performance has become a crucial aspect for companies amid the global climate crisis. This study aims to map the global research landscape on methods for assessing corporate environmental performance using bibliometric analysis. By analyzing Scopus-indexed articles from 2015 to 2025, this study identifies key contributors, conceptual structures, and evolutionary trends in this topic. VOSviewer software was used to perform keyword co-occurrence analysis, visualize trend shifts, and map research themes based on keyword clusters. The five research clusters identified include: 1) The Role of Corporate Environmental Management to Corporate Environmental Performance; (2) Environmental Governance; (3) Environmental Performance Measurement and Assessment; (4) Triple Bottom Line and Corporate Attributes; and (5) Green Innovation. To the best of the author's knowledge, this study is the first to examine the global literature on environmental performance assessment and map the research landscape into several thematic clusters. Thus, this study provides novelty and theoretical contributions to the insights and advancements of the literature on environmental performance assessment and practical contributions to relevant stakeholders, particularly companies.
Environmental Taxes and Food Exports: Assessing Trade and Sustainability Dynamics in OECD Countries
This study investigates the impact of environmental taxes on food exports in OECD countries from 1994 to 2022, utilizing advanced econometric techniques, including panel cointegration analysis and Panel Vector Error Correction Models (Panel VECMs). While environmental taxation aims to mitigate ecological degradation, its trade implications remain debated. The results reveal a positive long-term relationship between environmental taxes and food exports, suggesting that taxation policies incentivize sustainable innovation and enhance export competitiveness. However, short-term effects indicate a temporary decline in food exports following tax increases. The study also identifies a bidirectional causal relationship between environmental taxation and food exports, highlighting the role of regulatory adaptation and market adjustments. These findings provide critical insights for policymakers seeking to balance trade competitiveness and environmental sustainability through well-designed taxation frameworks and international policy coordination.
Energy Consumption, Renewable Energy Transition, and Industrial Production as Determinants of Economic Growth in Kazakhstan: An ARDL Analysis
This study examines the dynamic interrelationships between energy consumption, renewable energy transition, and industrial production as key drivers of Kazakhstan’s economic growth over the period 2000-2024. Drawing on annual data and econometric analysis, the research investigates both short- and long-term linkages among these variables. The findings indicate that energy consumption and industrial output exert strong positive effects on GDP, emphasizing their central role in supporting Kazakhstan’s sustained economic expansion. In contrast, renewable energy consumption shows a weak and statistically insignificant effect, which reflects its relatively small share in the national energy mix but also signals untapped potential for future development. The results of diagnostic and stability tests confirm the robustness of the model, suggesting that while Kazakhstan’s growth has been primarily supported by industrial activity and traditional energy sources, greater diversification toward renewables could strengthen long-term resilience and sustainability. Overall, the study highlights the need for continued industrial modernization, enhanced energy efficiency, and strategic investment in clean energy technologies to promote balanced, inclusive, and environmentally sustainable economic growth.
Oil- and Gas-Rich Azerbaijan’s Economic Diversification: Analysis of Global Experiences and Prospects for Application
This paper examines the current state and future prospects of economic diversification policy in Azerbaijan’s economy, which remains highly dependent on oil and gas resources. Based on time-series data covering the period 2014–2024, trend analysis was conducted to visualize structural changes and identify intersectoral dynamics. Using ARDL (Autoregressive Distributed Lag) and VAR (Vector Autoregression) models, the short- and long-term interactions between the share of oil in GDP, non-oil exports, innovation and research expenditures, and fiscal revenues were empirically assessed. The findings indicate that the share of the oil sector in GDP decreased from 41% to 27.5%, while non-oil exports and R&D expenditures demonstrated upward trends. However, the high share of oil revenues in the state budget persists, confirming that sustainable diversification within the fiscal structure has yet to be fully achieved. Strategic investments by SOCAR and other energy enterprises in non-oil sectors play a crucial role in this transition process, providing additional impetus to industrial transformation. A comparative analysis with Norway, the United Arab Emirates, and Kazakhstan, based on panel data, revealed the potential for local adaptation of international experiences in this area. Applying SWOT and GAP analysis approaches, Azerbaijan’s economic strengths and weaknesses were systematized, leading to the conclusion that institutional reform is necessary within the framework of strategic planning. The main conclusion of the paper is that Azerbaijan, in the course of its transition to the post-oil stage, must strengthen its innovation policy and improve institutional mechanisms aimed at developing non-oil sectors.
Influence of ESG Performance on Shaping the Environmental Kuznets Curve: Evidence from the Expanded Persian Gulf Region
This study investigates the dynamic interplay between economic growth, Environmental, Social, and Governance (ESG) performance, and environmental degradation in the expanded Persian Gulf region. Using a panel ARDL-PMG approach on data from 2018 to 2023 across eight countries, we confirm an inverted U-shaped Environmental Kuznets Curve (EKC), showing that economic growth initially increases CO₂ emissions but eventually leads to reductions beyond a certain income threshold. ESG performance significantly mitigates emissions and moderates the GDP-CO₂ relationship through the interaction term, lowering the EKC turning point and accelerating the stage at which economic growth leads to environmental improvements. The error correction term indicates rapid adjustment toward long-run equilibrium, highlighting the responsiveness of the system to economic and policy changes. These findings emphasize the importance of integrating ESG considerations into national policies, promoting sustainable corporate practices, and supporting green investments to achieve low-carbon and sustainable growth. This study advances the literature by embedding ESG performance within the Environmental Kuznets Curve framework, capturing its moderating role on economic growth,and enabling a more precise estimation of its influence on the EKC turning point. These insights provide both a theoretical contribution and guidance for policymakers, pointing them toward strategies that embed ESG principles, foster green investments, strengthen governance transparency, and accelerate the transition to low-carbon and sustainable growth in strategically important economies.
Integrating Renewable Energy, Institutional Empowerment, Post-Harvest Efficiency in Sustainable Blue Economy Models
This study explores how the integration of renewable energy, institutional empowerment, and post-harvest efficiency can enhance sustainable blue economy models. A mixed-method design combines quantitative and qualitative data from coastal fisheries to examine the relationships between energy access, institutional strength, and operational efficiency. The results show that working capital, cooperative governance, and solar-based electrification improve fisheries productivity, while greater post-harvest losses reduce both efficiency and sustainability outcomes. Communities adopting renewable energy and participatory institutions achieve higher income growth, stronger resource resilience, and broader social inclusion. The findings emphasize that technological innovation must operate alongside institutional capacity and equitable management systems. By introducing post-harvest loss as a measurable indicator of efficiency, this research expands the analytical framework of the blue economy and offers a replicable model for sustainable coastal development aligned with global sustainability goals.
Financial Development, Energy Supply and Environmental Quality in West Africa
This research investigates the influence of financial development and energy supply on environmental quality in West Africa. The study's data spans from 2009 to 2023 and was obtained from the World Development Indicator database. We employed the panel autoregressive distributed lag (P-ARDL) estimator for the analysis. Empirical evidence indicated that private sector lending substantially influences environmental quality in West Africa. Access to electricity dramatically influences environmental quality in West Africa. This illustrates that investment in the private sector and sufficient electricity generation enhance environmental quality within the West African economy. The study concludes that financial development and energy supply significantly influence environmental quality. The report advises that West African financial institutions should establish green financing methods to direct loans towards environmentally non-polluting projects.
Green Finance as a Mediator of FDIs’ Impact on Energy Productivity and Environmental Sustainability in Resource-Intensive Sectors of GCC Countries
This study aims to examine the role of green finance in linking resource-intensive sectors in GCC countries to improved energy productivity and environmental sustainability through the use of foreign direct investment (FDI). The study applies ARDL models to data collected from 1990 to 2023 in order to comprehend the long-term and short-term relationships among FDI, green finance, research and development, trade openness, GDP, and renewable energy usage. The findings highlight the significance of foreign direct investment (FDI), research and development (R&D), and green financing in bolstering industrial strength and energy productivity, as well as in achieving environmental objectives. This study further demonstrates how susceptible these systems are to inefficiency by finding that negative shocks to energy efficiency are more detrimental than positive ones. Green investments, when coupled with energy efficiency and trade liberalisation, can reduce competitiveness in the short term while leading to sustainability in the long run. This study takes a novel approach by presenting green finance as a critical link between foreign direct investment (FDI) and sustainable development. It demonstrates how green finance can transform resource-based economies' industrial growth driven by FDI into development that is both more energy-efficient and environmentally friendly.
Does Carbon Dioxide Have a Significant Dynamic Effect on Agricultural Productivity in Indonesia?
This study investigates the dynamic influence of carbon dioxide (CO₂) emissions, labor, and capital formation on agricultural productivity in Indonesia, utilizing annual data from 2000 to 2023 and employing an Autoregressive Distributed Lag (ARDL) model. The coefficient of carbon dioxide has no significant dynamic effect on the agricultural productivity in Indonesia in the short run. Meanwhile, labor and capital have dynamic and significant effects on agricultural productivity in the short run. However, carbon dioxide, labor, and capital have no significant long-term effects on agricultural productivity. Furthermore, labor exhibits cyclical and inconsistent effects, reflecting seasonal employment patterns and skill limitations, whereas capital consistently has a positive impact on productivity through mechanization and technological advancements.
The Digital-Green Twin Transition: A Framework for Digital Transformation and Clean Energy Integration in the Agro-Industrial Sectors of Russia and Kazakhstan
This study examines the relationship between Digital Transformation (DT) and Clean Energy Integration (CEI) in the agro-industrial sectors of emerging economies, with a focus on Kazakhstan and Russia. As these countries pursue industrial growth while meeting climate commitments, the research evaluates how digital maturity and green financial frameworks drive decarbonization. Using secondary data from 2000 to 2024, the study applies advanced econometric methods, including Cross-Sectionally Augmented IPS (CIPS) unit root tests and the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model, to address cross-sectional dependence and structural breaks. Results show that both Digital Transformation and Environmental Policy (EP) significantly reduce Greenhouse Gas Emissions (GHGE) in the long term, with coefficients of −1.730 and −2.289, respectively. Green Financial Innovation (GFI) and Circular Capacity (CC) also play key roles in lowering carbon intensity. The Error Correction Term (ECT) of −1.120 suggests a rapid adjustment toward the long-run equilibrium. This research introduces a holistic “Digital-Green Twin” approach, positioning digitalization as the foundation for renewable energy adoption in large-scale agro-industrial processing. The findings offer a scalable roadmap for policymakers to align technological progress with carbon-neutral industrial objectives.
Economic Impact of Consumer Determinants on Household Energy Use: Evidence from Kazakhstan
The quality and productivity of human capital are influenced by household consumption factors, such as spending on health care, education, and better living conditions. Households support the reproduction of the labor force as the main factor of production and invest in the development of human capital through the consumption of goods and services. As technology advances and smart homes emerge, and as demand for services and goods increases, household energy consumption is also increasing. The aim of the study is to assess the economic impact of consumer determinants on household energy consumption. The study used the following indicators: Consumer price index of Housing services and other fuels, Real money income index of population, Annual inflation rate, Percentage of internet users, Employment rate. To assess the impact of factors on the level of household final energy consumption in Kazakhstan using the ARDL model, data covering 2001-2024 were obtained from the National Bureau of Statistics of the Republic of Kazakhstan and the official website of the World Bank. The findings indicated that the Consumer price index of housing services and other fuels has no effect on the Households final energy consumption (1000 t o.e.) component in either the long or short run. Whereas real money income, inflation rate, internet users have a positive influence in both the long and short run, employment rate has a negative effect in both the long and short run.
The Impact of Russia–Ukraine Conflict on the Crude Oil Prices
This paper investigates the properties of the crude oil prices in the context of the Ukraine- Russia conflict by using statistical techniques based on long memory and fractional integration. In order to understand the volatility of West Texas Intermediate crude oil prices, data from Federal Reserve Bank of St. Louis for the period September 12, 2012 to September 12, 2022 are used. The results using unit root tests indicate nonstationarity I(1) for the whole sample period but also for the two subsamples created by the war. Additionally, the findings through ARFIMA approach for the whole period as well as pre-Russia-Ukraine war period confirm mean reversion and transitory shock, whereas for the period from the start of Russia-Ukraine war, the shock in crude oil prices is expected to be permanent. There is a need for inter-governmental cooperation in keeping the oil price at its normal value.
Government Spending, Renewable Energy and Green Growth: Evidence from Vietnam
This study investigates the relationship between government spending, renewable energy development and carbon intensity in Vietnam, where carbon intensity is used as an indicator of green economic performance. Using annual time-series data for the period 2000–2021, an autoregressive distributed lag (ARDL) model is employed to capture both short and long-run dynamics among the variables. The empirical results confirm the existence of a long-run equilibrium relationship. Renewable energy development is found to reduce carbon intensity in both the short and long run, thereby improving environmental quality and supporting the transition towards a more sustainable, low-carbon economy. By contrast, aggregate government spending does not exert a clear direct effect on carbon intensity, suggesting that broad-based fiscal expansion alone may be insufficient to foster green growth without complementary, environmentally targeted policies. The findings highlight the importance for policymakers of accelerating renewable energy deployment, mainstreaming sustainability considerations into urban planning, and aligning public investment in technology and infrastructure with low-carbon development objectives to achieve durable reductions in emissions.
Sustainable Future of International Trade and Environmental Governance in ASEAN: Indonesia’s Economic Growth and Green Commitments
This study investigates the determinants of sustainable development in Indonesia, with a specific focus on reconciling economic growth and international trade with environmental governance and green commitments. The research aims to empirically test the Environmental Kuznets Curve (EKC) hypothesis and evaluate the distinct roles of governance quality and renewable energy. Utilizing data from 1990–2022, the methodology employs second-generation econometric techniques robust to cross-sectional dependence, including the Cross-sectionally Augmented ARDL (CS-ARDL) model to estimate long-run and short-run dynamics. The findings confirm the EKC hypothesis for Indonesia, revealing an inverted U-shaped relationship between income and CO₂ emissions. More significantly, the results establish that robust government governance and the adoption of renewable energy are critical, statistically significant drivers in mitigating environmental degradation, with the economy showing a rapid adjustment speed to long-run equilibrium. The study’s implications stress the necessity for integrated policies that strengthen institutions and accelerate the energy transition. Its novelty lies in its dual-focused analysis and robust methodology, offering a nuanced and actionable framework for sustainable growth in ASEAN’s largest economy, demonstrating that effective governance is a fundamental enforcer of green commitments.
Impact of Sustainable Energy Technologies, Government Governance and Environmental Taxes on Sustainable Energy Transition in E7 Countries: Fresh Evidence using CUP-FM CUP-BC Approach
The current study examines the effectiveness of sustainable energy technologies, governance and environmental taxes on energy transition using E7 countries data for the period 2006-2020. The study used CUP-FM and CUP-BC estimation techniques to assess the relationship between variables. Findings of the study reveal the positive association between constructs, suggesting that expansion of clean energy resources including solar & hydroelectric energy helps economies to experience sustainable energy transition as it ensures energy security. The significant relationship of government governance also suggests that governance indicators are crucial for energy transition. Moreover, the effective imposition of environmental taxes facilitates industries to shift toward sustainability while discouraging the reliance on non-renewable resources. Interestingly, the positive influence of industrialization, inflation and population growth indicate that although industrialization and population growth amplify the demand of energy consumption, however, when driving demand is paired with sustainable policies, it may result in green energy transition. In addition, findings also suggest that economies have an opportunity to capitalize on inflation-led pricing trends to boost energy diversification and advance sustainable opportunities.
Digital and Energy Transitions in the Agro-Industry: An Economic Analysis of Technology Diffusion and Sustainable Innovation Pathways
The global agro-industry is changing, with a shift toward high-tech, data-driven systems to tackle environmental challenges and resource shortages. This study examines how digital and energy transitions are occurring together within the agricultural innovation ecosystem, driven by global demand for sustainability. Using a dataset of more than 2 million patents filed from 2000 to 2019, the research maps how technology spreads with Main Path Analysis (MPA) and explores the factors behind this process using an Exponential Random Graph Model (ERGM). The MPA identifies 12 main technology paths, starting with GPS-based management and progressing to advanced, energy-efficient uses of AI, IoT, and blockchain. ERGM results show that the innovation network forms selective, trust-based clusters and follows a “Matthew Effect,” where leading technologies attract more investment. The analysis finds that aligning policy frameworks is the most important factor in building these networks, even more than traditional R&D spending. Environmental sustainability also has a strong positive effect, showing that the ecosystem favors technologies that lower carbon emissions and energy costs. While individual farmers do not yet have much influence on the larger innovation network, including them is important for fair technology sharing and system resilience. These results provide policymakers and agribusinesses with a strategic guide, showing that a successful digital and energy transition requires a balanced approach that combines market forces, robust regulations, and inclusive innovation.
Analysing the Economic and Environmental Impact of Electric Vehicle Diffusion on the Malaysian Economy
The transition to electric vehicles (EVs) is increasingly viewed as a key strategy in decarbonising the transport sector, with far-reaching implications for national economies and energy systems. This study evaluates the macroeconomic, employment and environmental impacts of large-scale EV adoption in Malaysia using an environmentally extended input-output (EEIO) model. Two scenarios are evaluated for the different EV share targets (30%, 50% and 80%): (i) a shift in demand from petroleum to electricity due to EV use, and (ii) a structural transformation of the vehicle manufacturing sector from internal combustion engine (ICE) to EV. The results reveal modest benefits from fuel substitution alone, but larger gains from transitioning to EV manufacturing. However, the environmental gains remain limited without decarbonising the electricity mix. The study highlights critical trade-offs and emphasises the need for coordinated policy strategies linking transport electrification with clean energy deployment, labour market transition support, and green industrial development. These findings offer evidence-based guidance for managing Malaysia’s low-carbon mobility transition in line with economic and climate policy objectives.
Innovation under the Unique Pressures of Energy Transition: Can CSR Strategy Buffer ESG Controversies in EU Firms
This study addresses issues related to Environmental, Social, and Governance (ESG) activities in the energy industry—namely, carbon emissions disputes, nuclear safety concerns, divestments in fossil fuels and bottlenecks in renewable transition—that affect carbon emissions disputes, nuclear safety concerns, divestments in fossil fuels and bottlenecks in renewable transition on firms' environmental innovation performance. It also investigates whether CSR strategy attenuates these effects, with a focus on industry-specific innovations such as carbon capture, smart grids, and renewables technologies. The study utilizes an unbalanced panel of 233 firm-year observations for European Union energy firms over the period 2015–2023, and uses fixed effects (FE), high-dimensional fixed effects (HDFE), as well as system GMM estimations to control for heterogeneity and endogeneity. The finding revealed that ESG controversies significantly curb environmental innovation at energy firms due to reputational harm, regulatory pressures, and reallocation of resources. Governance attributes, including board size, gender diversity, and leverage, encourage innovation, while the impact of audit committee independence and expertise is mixed. The CSR strategy does not have a significant impact on the controversy–innovation relationship, suggesting that the CSR endeavor alone is not sufficient to safeguard the ability to innovate in the energy industry. The results illustrate that ESG is a bottleneck for carbon neutrality and energy transition. Policymakers and business leaders need to embed ESG risk management in innovation strategies. This research contributes to insights into energy-ESG risks and their link to technology development necessary to achieve a sustainable transition.
Modelling Structural and Macroeconomic Drivers of Disparities in the Energy–Growth Nexus in Sub-Saharan Africa
The energy–growth–environment nexus has long been central to debates on sustainable development, yet empirical evidence for Sub-Saharan Africa (SSA) remains fragmented and inconclusive. While earlier studies have explored the impact of energy consumption on growth, limited attention has been given to the drivers of disparities in the nexus across SSA. This gap is particularly significant given the region heterogeneous economic structures, resource endowments, and demographic dynamics. This study investigates the structural and macroeconomic determinants of disparities in the energy–growth relationship across 41 SSA countries between 1990 and 2024. Specifically, it examines how factors such as human development, labour force participation, unemployment, population growth, and foreign direct investment (FDI) interact with energy use to influence economic growth. A dynamic linear growth model is estimated using the Sequential Two-Stage Generalized Method of Moments (GMM). The results show weak evidence of growth persistence, as lagged GDP coefficients were positive but statistically insignificant. Total energy consumption also proved insignificant, suggesting that energy expansion alone does not directly drive growth in SSA. By contrast, the human development index exhibited a strong and significant positive effect, underscoring the centrality of human capital to long-run growth. Labor force participation contributed positively with marginal significance, while unemployment had a slight but negative impact, reflecting structural labour market inefficiencies. Population growth and FDI were both insignificant, pointing to demographic pressures and limited absorptive capacity. These findings highlight the need for integrated policy frameworks that prioritize human capital investment, labour market reforms, expansion in renewable energy access, institutional strengthening, and demographic management. A key limitation of the study is the exclusion of some country-specific structural factors, such as governance, geography and natural endowments. Future research should incorporate these variables and explore country-level asymmetries to better inform targeted policy formulation.
Moderating Role of ESG Reporting in the Association between Green Innovation and Earnings Management in MENA Energy Firms
This research investigates the impact of green innovation (Gre-inn) on earnings management (EM) in MENA energy companies, taking into account, moderating effect of integrated ESG reporting (ESGC). Based on a sample of 1,747 firm-year observations from the period 2008–2024 results indicate that there is a positive and significant relationship between environmental innovation (Gre-inn) and EM, which implies that environment-driven innovations—triggered by regional clean-energy transitions—can be strategically employed to mold reported performance. ESGC also has a weakly positive effect on EM and reinforces the Gre-inn–EM relationship, suggesting that transparent sustainability disclosure enhances managers’ discretion in managing earnings. Robustness tests validate the findings. These findings are critical for developing MENA economies as both significant reforms and renewable projects along with evolving reporting frameworks are transforming the energy sector.
Decomposition Analysis of Carbon Dioxide Emissions from the Electricity Generation Sector of India with a Policy-focused Approach and Evaluation of Scope for Raising Nationally Determined Contribution Ambitions for 2030
This paper uses the Log Mean Divisia Index to decompose and analyze carbon emissions from electricity generation sector in India for the period 2014 to 2023. The overall carbon emissions grew by more than 558 Million tonnes during the period of study. The activity effect arising out of the growth in the Gross Domestic Product (GDP) has been the primary driver of growth in carbon emissions. The energy intensity of generation from thermal sources has also contributed significantly to the increase in emissions. The electricity generation intensity of the GDP is the biggest driver of emissions reduction. The falling share of thermal electricity in overall electricity generation also leads to some reduction of carbon emissions. The fuel mix effect is relatively insignificant. The emission factor remains unchanged during the period of study and has no effect on emissions. The study also analyses scenarios where different generation mixes lead to different levels of emissions reduction and uses them to analyze the scope for India to increase its NDC target of emission intensity reduction of the economy by 45% by 2030, assuming that other sectors of the GDP can achieve similar reductions. Based on the analysis in this study, it is found that India can consider enhancing its NDC target for emission intensity reduction to 55% by 2030, compared to 2005 levels, which could further influence the 2035 targets under its NDC 3.0.
The Role of Institutional Quality in Renewable Energy Transition: A Panel CS-ARDL Analysis of MIKTA countries
This study investigates the role of institutional quality in driving the renewable energy transition in MIKTA countries (Mexico, Indonesia, Republic of Korea, Türkiye, and Australia) over the period 2000–2023. Second-generation panel econometric techniques are employed to address slope heterogeneity and cross-sectional dependence, as confirmed by Pesaran CD and slope homogeneity tests. The analysis applies the Cross-Sectionally Augmented ARDL (CS-ARDL) approach alongside the Westerlund cointegration test to establish a stable long-run relationship among the variables. Long-run results reveal that institutional quality significantly enhances renewable energy consumption per capita. Specifically, a one-unit increase in Control of Corruption raises renewable energy use by approximately 2.34%, while Political Stability increases it by 1.63%. Economic growth also exerts a positive influence, with a GDP per capita elasticity of 0.87. Short-run dynamics indicate a significant error correction term (−0.372), implying that 37.2% of deviations from long-run equilibrium are corrected annually. Robustness checks using CCEMG and AMG estimators confirm the consistency of the findings. Overall, the results underscore the critical importance of institutional reforms in fostering renewable energy investment and achieving sustainable development in MIKTA economies.
Macroeconomic Determinants and Green Assets in Explaining Stock Return Dynamics: Evidence from Indonesia
This study examines the effects of macroeconomic variables—interest rates, inflation, and exchange rate fluctuations—on green stock returns in Indonesia, highlighting the moderating role of green assets. Using firm-level data from 111 companies listed in the ESG Quality 45 Index (IDX KEHATI) during 2021–2023, the analysis integrates macroeconomic fundamentals with sustainability-linked financial indicators to capture market sensitivity to economic shocks. The results reveal that interest rates and inflation exert negative and statistically significant effects on green stock returns, while exchange rate fluctuations are insignificant. Green assets, however, enhance market performance and resilience, particularly under inflationary conditions. The positive interaction between inflation and green assets indicates that sustainability-oriented investments serve as an effective hedge against inflation. The model explains approximately 42% of the variation in returns and remains robust across lagged estimations. These findings extend the Arbitrage Pricing Theory by incorporating sustainability-based risk factors grounded in the Fisher Effect and Green Premium Hypothesis, emphasizing the strategic importance of green finance in strengthening market stability and supporting the transition toward a low-carbon economy.
Insight between Energy Factors and Digitalization on Road Freight Volume: Evidence from Kazakhstan
Geopolitical instability in the world has a strong impact on energy prices and international relations. For Kazakhstan, which does not have direct access to the open ocean, freight transport by road is one of the main sources of transportation, and as a country connecting Europe and Asia, it is located in a transit environment, and a large number of transit trucks also pass through it daily. In this regard, the study of the impact of energy factors and the level of digitalization, which is currently widely used to optimize freight transport, on the overall transport turnover has become a topical issue. In this regard, the purpose of this research work is to determine the impact of energy factors and digitalization on the turnover of freight transported by road. The following variables, which are not similar to each other, but are closely related both directly and indirectly, were taken at the same time: Automobile cargotunrover (mln tonna-km), Transport consumer price index, Diesel price , Total final energy consumption in thousands of tons of oil equivalent in TRANSPORT, Inflation, Length of internal public roads (km), Carbon dioxide (CO2) emissions from Transport (Energy) (Mt CO2e), ICT service exports (BoP, current US$), Fixed broadband subscriptions, Individuals using the Internet (% of population). Due to the complexity of the variables, two Nonlinear Autoregressive Distributed Lag econometric models were created. The model results and a number of useful recommendations are summarized in the Conclusion section.
Macroeconomic Indicators and Market Index Interactions in the United States: An Empirical Analysis
This study investigates the dynamic interactions among the major United States (US) equity indices (NYSE, NASDAQ, and S&P 500), key macroeconomic indicators (Gross Domestic Product and Consumer Price Index), and West Texas Intermediate (WTI) crude oil prices over 2005 - 2024. Using descriptive statistics, correlation analysis, and Wavelet Transform Coherence (WTC), the research captures both linear relationships and time–frequency comovements across economic regimes, including the 2008 Global Financial Crisis, the COVID-19 pandemic, and the post-pandemic recovery. The results show strong coherence among the equity indices but weak and unstable linkages with macroeconomic fundamentals, especially GDP. WTI demonstrates persistent medium- to low-frequency coherence with CPI and equity indices during crisis periods, highlighting its role as a major macro-financial transmission channel. These findings reveal that US financial markets have become increasingly decoupled from real-sector performance while remaining sensitive to energy-price shocks and inflation dynamics. By applying a continuous wavelet approach to a long-horizon, multi-indicator dataset, this study provides a richer view of how systemic events reshape market–macro relationships. The evidence offers new insights for policy formulation, portfolio diversification, and risk management, underscoring the need for frequency-sensitive, nonlinear frameworks for analysing macro-financial interdependence.
Green Digital Leadership and Sustainable Innovation Capability in Vietnamese Manufacturing: The Roles of Green Organizational Culture, Digital Transformation Readiness, and Environmental Turbulence
In the context of increasing demands for sustainable development and digital transformation, manufacturing enterprises in Vietnam are facing stronger innovation pressure than ever before. This study aims to assess the impact of Green Digital Leadership (GDL), Green Organizational Culture (GOC), and Digital Transformation Readiness (DTR) on firms’ Sustainable Innovation Capability (SIC). At the same time, the study examines the moderating role of Environmental Turbulence (ET) in the relationship between GDL and SIC. Data were collected from 232 manufacturing enterprises in Vietnam and analyzed using statistical techniques including Cronbach’s Alpha, Pearson correlation, multiple regression, and interaction testing. The results show that GDL, GOC, DTR, and ET all have positive and statistically significant effects on SIC, in which GOC demonstrates the strongest influence. However, ET does not moderate the relationship between GDL and SIC. These findings contribute additional empirical evidence on sustainable innovation in the context of an emerging economy and provide important managerial implications for Vietnamese enterprises in their journey toward green digital transformation.
Initiating Electric Vehicle Price Index and its Economic Factors: Evidence from the Stock Exchange of Thailand
The research aimed to develop a price index for electric vehicle companies listed on the Stock Exchange of Thailand and to examine the influence of macroeconomic factors on the Electric Vehicle Industry Index. The analysis employed both descriptive and inferential statistics, utilizing a multiple regression approach based on the least squares method. The study served as an example for constructing an index within the Thai stock market and provided insights into how macroeconomic factors influence the Electric Vehicle Industry Index. The findings indicated several factors affecting the stock price index of the electric vehicle industry. Notably, the exchange rate between the US dollar and the Thai baht, as well as the price of Dubai crude oil, showed a statistically significant inverse relationship with the electric vehicle index. Additionally, the total return index of the stock exchange of Thailand exhibited a statistically significant positive correlation with the electric vehicle index, while the consumer price index did not demonstrate any significant relationship with it. The results can assist investors and stakeholders in investment decisions in electric vehicle manufacturers by identifying key factors impacting the EV index and assessing the effects of macroeconomic conditions on their performance.
Geopolitical Risk and Firm Financing Decision: Can ESG Performance Act as a Buffer?
This study aims to examine effects of geopolitical tensions on firms' capital structure behavior and the role of ESG to navigate toward heightened tension between countries. We use 2460 companies across Asian continent ranging from 2016-2023, The authors choose Asian as a continent of interest because Asia holds an important place in terms of geographical location as the center of world’s economy. The study employes a panel data regression model, followed by two-step generalized method of moment (GMM) to address endogeneity and ensure robustness. This study found that companies will reduce their use of debt when geopolitical conditions arise. Conversely, companies will increase their cash reserves when geopolitical conditions are high. This study also analyzed how the interaction between GPR and ESG performance affects companies' use of leverage and cash reserves. The study found that companies with strong ESG performance will reduce their use of debt as a form of risk mitigation and maintain their corporate reputation. Conversely, companies with strong ESG performance will increase their cash reserves when geopolitical risks are high. This indicates that companies with strong ESG performance are more sensitive to geopolitical risks.
The Effects of Oil Revenue Allocation between Accumulation and Current Use on Macroeconomic Responses to External and Internal Shocks in a Small Oil-exporting Economy
All economies face risks of potential shocks, including oil-exporting countries. However, they can influence their impacts by changing the distribution of oil export revenues. However, the impact of different strategies for using rent income on the stability of macroeconomic indicators in the face of external and domestic shocks has been little studied. This study, using a dynamic general equilibrium (DSGE) model, examines the impact of the distribution of oil revenues between accumulation and current expenditure on the macroeconomic responses of a small oil-exporting economy to external and domestic shocks. Within this model, the study identified how different distributions of oil revenues affect the responses of economic indicators such as GDP, consumption, inflation, interest rates, real effective exchange rates, and net exports. The effects of shocks to the global oil price, total factor productivity, labor preferences, external demand for oil, and output in the rest of the world were considered. Although even small changes in the distribution of oil revenues can influence the responses of macroeconomic indicators to shocks, conclusions about the significance of differences between responses were drawn based on their estimated 90% confidence intervals. The results of this study can be considered by policymakers in oil-exporting countries.
Evaluation of Green Efficiency of the Industrial Sector and Its Influencing Factors in West Sumatra
One effort to achieve sustainable economic development is to conduct a green efficiency evaluation analysis. This study aims to evaluate green performance in the two-digit industrial sector in West Sumatra, as well as the factors that influence it. The purpose of this study is to evaluate green efficiency for 11 industries in West Sumatra and to analyze the impact of the energy structure, indirect taxes and COVID-19 on green efficiency in the industrial sector of West Sumatra. The methods used are SBM DEA and logistic panel regression. This policy simulation study will align with government policy to ensure that all research results comply with it. The results of the study indicate that in 2021 the efficient sectors were the food sector; the printing and reproduction of recorded media; chemicals and chemical materials; rubber and rubber materials; non-machinery metal goods and equipment; and the furniture sector. Meanwhile, the inefficient sectors were the beverage sector, the textile sector, apparel, paper and paper materials, and non-metallic minerals. When viewed from the influencing factors, indirect taxes had a significant positive impact on green efficiency in West Sumatra. Meanwhile, the energy structure and COVID-19 were not significant.
Drivers of Green Growth and Carbon Emissions in Vietnam: A Wavelet and Quantile-on-Quantile Examination
This paper examines the dynamic interrelationships between renewable energy use, environmental protection tax, and human capital quality in driving green growth and carbon emissions in Vietnam from 1995 to 2024. A novel Green Growth Index is constructed using FinBERT, a financial domain natural language processing model, to capture policy-driven progress toward sustainability. By integrating wavelet analysis and quantile-on-quantile regression, the study disentangles time–frequency dynamics and quantile-dependent effects. The results indicate that renewable energy and environmental taxes contribute to reducing CO₂ emissions, while human capital significantly enhances green growth but also increases emissions. The study highlights the dynamic and asymmetric relationships among these variables and provides policy implications for achieving Vietnam’s green transition.
Examining the Impact of Board Committees on the Relationship between Corporate Investment and Financial Performance
This study examines the role of corporate governance, specifically its representation on board committees, on the relationship between corporate investments and financial performance. We use quarterly data from 441 publicly traded non-financial US companies between 2010 and 2023. By employing the GMM methodology, the results show that corporate investment is adversely associated with financial performance, supporting the hypothesis of an underinvestment problem. Our findings also suggest that corporate governance, as represented by board committees, the supervisory and executive authorities—plays a pivotal role in mitigating the negative impact of corporate investments on firm’s financial performance. Furthermore, we note that the relationship between corporate governance and investments affects high-performing and low-performing companies differently, confirming the existence of asymmetry effect within the nexus between corporate governance and corporate investment across low and high-performing firms. The originality of this research lies in its comprehensive analysis of the role of strategic board committees—such as the Sustainability and Corporate Social Responsibility Committee, the Audit Committee, the Corporate Governance Committee, the Nominations Committee, and the Compensation Committee—in terms of the relationship between investment decisions and company performance, a topic rarely examined in the literature. The study's findings also offer practical implications for shareholders and decision-makers by strengthening oversight mechanisms and improving investment decisions.
Carbon Commodity Linkages in Emerging and Mature Markets: Comparative Evidence from Indonesia and the EU ETS
This study investigates the relationship between carbon prices and major food, energy, and mineral commodities in Indonesia and Europe using a multi method framework that includes correlation analysis, hierarchical clustering, random matrix theory (RMT), rolling window eigenvalue diagnostics, and vector autoregression (VAR). The Indonesian dataset (2024–2025) reflects the early stage of the IDX Carbon market, while the European dataset (2015–2025) represents the mature structure of the EU Emissions Trading System. The combination of RMT filtering and VAR modelling allows for the identification of systemic comovement and dynamic transmission channels. The results show a clear contrast between the two markets. In Indonesia, correlation measures, clustering patterns, and RMT indicators suggest that commodity price movements are mostly noise driven, with no stable link between carbon prices and food, energy, or mineral commodities. In Europe, the eigenvalue spectrum, the systemic risk index, and rolling RMT patterns reveal strong and time varying comovement across energy and metal commodities, with VAR results identifying natural gas as the main driver of carbon price dynamics. Overall, the findings highlight how market maturity and energy system structure shape carbon commodity interactions and offer guidance for carbon market design in emerging economies.
Examining the Impact of Economic Globalization on Environmental Degradation in Saudi Arabia
Environmental degradation has emerged as a pressing global challenge that requires continuous empirical assessment, motivating researchers to examine it. To this end, this study examines the asymmetric impact of globalization, economic growth and trade openness on the CO2 emissions in the presence of environmental Kuznets curve (EKC) in Saudi Arabia for the 1970 -2022 period. In order to investigate the effect of positive and negative shocks on the independent variable on the dependent variable, a nonlinear autoregressive distributive lag (ARDL) is used. The findings confirm that the effects of globalization and trade openness are significant and nonlinear. However, the effect of negative shocks of globalization and trade openness is more dominant on the CO2 emissions in in Saudi Arabia than the positive shocks of both variables. Moreover, the present study tests the presence of the Environmental Kuznets Curve (EKC) hypothesis in Saudi Arabia, and the findings confirm the presence of an inverted U-shape curve in the Saudi Arabia economy. Policymakers should reinforce environmental regulations, broaden green financing initiatives, and adopt international best practices to ensure that globalization supports environmental goals in the long-term.
The Dynamic Interplay between Inflation, Economic Policy Uncertainty, and Economic Resilience in Emerging Markets: A Time-Varying Parameter Stochastic Volatility Vector Autoregression Analysis
This paper examines the complex and time-varying linkages between inflation, EPU, and economic resilience in emerging market economies. By applying a TVP-SV-VAR model on quarterly data from 2000 to 2024, we explore the dynamic interaction of these macroeconomic variables over time. Our results indicate that inflation and EPU exert a constant negative impact on economic resilience, with these impacts heterogeneous across different time periods and economic cycles. The analysis also shows that uncertainty and inflation demonstrate more pronounced negative effects during crisis times, implying that policy credibility and macroeconomic stability are accentuated when economies are under external shocks. The estimated stochastic volatility showed significant heteroskedasticity in all series, advocating the importance of considering time-varying volatility in macroeconomic modeling. Our results carry important implications for policymakers in emerging economies, highlighting the importance of credible monetary policy frameworks, transparent communication, and strong institutional arrangements necessary to build economic resilience.
Energy Potential of Central Asian States: Prospects for Nuclear Power Development
This study offers a comprehensive analysis of the pressing challenges and strategic prospects for developing the energy potential of the Central Asian region. The research begins with the acknowledgment of the region’s growing geopolitical and energy significance, which is nonetheless offset by substantial internal asymmetries. The investigation identifies a number of fundamental structural imbalances, including the stark disparity in the distribution of hydrocarbon reserves and hydropower resources, the extensive physical and moral obsolescence of generation and transmission infrastructure, systemic seasonal energy deficits, and persistent conflicts of interest over the use of transboundary waterways. A significant portion of the analysis focuses on assessing the potential of nuclear energy as a strategic instrument for overcoming electricity generation shortfalls, reducing environmental burdens, and stimulating long-term economic growth in Central Asian countries. Based on a detailed review of the national energy sectors across the region, the article outlines pathways for multilateral cooperation. The central conclusion of the analysis is that only a coordinated and strategically sound energy policy can serve as the primary driver for ensuring sustainable socioeconomic development and strengthening the sovereignty of Central Asian states amid deepening global instability.
Energy Poverty in Sub-Saharan African Countries: Harnessing Green Energy for Youth Employability and Economic Transformation
Energy poverty remains a critical developmental challenge across sub-Saharan African (SSA) countries, where over 600 million people lack access to reliable, affordable, and sustainable electricity. This persistent energy deficit impedes socioeconomic progress, limits educational and health outcomes, and stifles industrialization and entrepreneurship. Youth, who constitute more than 60% of the region’s population, are disproportionately affected, facing high unemployment rates and limited opportunities for meaningful engagement in the formal economy. This paper explores the intersection of energy poverty and youth employability, emphasizing the transformative potential of harnessing green energy to drive inclusive economic development. Green energy comprising solar, wind, biomass, hydro, and geothermal sources offers a scalable and sustainable solution to SSA’s energy crisis. It presents an opportunity not only to expand energy access but also to create jobs, stimulate innovation, and foster entrepreneurship among youth. Through decentralized renewable energy systems such as mini-grids and solar home systems, rural and off-grid communities can be empowered to participate in local economies, enhancing resilience and reducing rural-urban drifts.
Effect of Renewable Energy Consumption, Artificial Intelligence, and Education on Economic Growth for Period 1993-2023: Quantile Regression-ARDL Approach
Since education affects environmental practices, energy transition, and economic growth, it is a crucial part of sustainable development. The rise in the rate of solarization in Morocco is a result of public education activities that could boost technical innovation and productivity. The purpose of this study is to ascertain how Morocco affects economic growth (EG), education, general government consumption spending (GGCS), artificial intelligence (AI), and renewable energy consumption (REC). To assess the short- and long-term correlations between the model's variables, this study combined the least squares ordinary approach with a Quantile Regression-ARDL Approach for stationarity and distributed deterioration. Annual data from 1993 to 2023 from the International Energy Agency (IEA), World Development Indicators (WDI), and Energy Progress Report have been gathered for the study. Long-term relationships were evaluated using the bound test, and heteroscedasticity in the model residuals was examined using the White test. Numerous connections between independent and dependent variables were shown by empirical study. While the dependent variable was stationary in the first difference, the actual data demonstrated that the independent variables were not stationary in the first difference but became stationary in the second. A long-term association between independent and dependent variables was validated using the bound test-based model simulation. The short- and long-term connections between EG and schooling, however, were refuted. There were no indications of heteroscedasticity in the model residuals. The results show how education, AI, REC, GGCS, and economic growth interact in a multifaceted way in Morocco. When creating policies for sustainable development, policymakers should take these relationships into account, especially when attempting to strike a balance between environmental sustainability, educational advancement, and economic growth.
VECM Modeling of the Determinants of Decarbonization in Tunisia: The Role of Innovation and Renewable Energies
This study analyzes the dynamic relationships between per capita CO2 emissions, renewable energy consumption, environmental innovation, and trade openness using a Vector Error Correction Model (VECM) over the period 1995–2024. The econometric analysis confirms the existence of a long-run cointegration relationship between these variables, highlighting a stable equilibrium mechanism linking environmental outcomes, technological progress, energy transition, and economic openness. Short-term causality tests reveal asymmetric interactions: environmental innovation is significantly influenced by shocks to renewable energy consumption and trade openness, while CO2 emissions show relative rigidity in the short run. Stability tests confirm the robustness of the model, and variance decomposition highlights the increasing influence of renewable energy on emissions, reflecting the gradual impact of energy transition policies. Environmental innovation emerges as a key driver influencing both renewable energy development and emissions dynamics, highlighting the crucial role of technological progress in achieving sustainability goals. Trade openness exerts an indirect but significant effect, interacting with innovation and energy over longer time horizons.
When Risk Meets Confidence: How ESG and Innovation Shape Corporate Finance in Emerging Markets
This study investigates how macroeconomic uncertainties and firm-level behavioral and innovation factors interact to shape corporate financial outcomes in emerging markets. We specifically investigate the interaction between geopolitical risk (GPR), economic policy uncertainty (EPU), research and development (R&D) intensity, and managerial overconfidence on corporate leverage and stock returns, with environmental, social, and governance (ESG) performance serving as a moderating variable. Using panel data from listed firms across Indonesia, Malaysia, and Thailand during 2014–2024, the results reveal that GPR, R&D intensity, and managerial overconfidence increase leverage, whereas GPR reduces stock returns and EPU enhances them. R&D and managerial overconfidence do not significantly affect returns, and stock returns do not mediate the relationship between risk and leverage. Moreover, ESG performance amplifies the effects of GPR and EPU on both leverage and returns. By integrating macro-financial uncertainty, managerial behavior, and sustainability dimensions, this study contributes to the literature on corporate finance under uncertainty and provides policy-relevant insights for regulators and investors in emerging markets.
Managing Systemic Risk in Energy and Financial Markets: Evidence from Five Portfolio Strategies Based on Connectedness
This study investigates the evolving interdependencies and risk transmission mechanisms between energy and financial markets, focusing on gold, West Texas Intermediate (WTI) crude oil, the S&P 500 Index (SP500), and the Shanghai Stock Exchange Composite Index (SSE) from January 2019 to August 2025. Employing daily return data, the analysis integrates multivariate linear regression, Dynamic Conditional Correlation-GARCH (DCC-GARCH) models, and dynamic conditional R² decomposition to capture time-varying connectedness and explanatory power. Grounded in the Diebold and Yılmaz (2012, 2014) framework, augmented by R² decomposition, the findings evince heightened systemic risk during major global disruptions, notably the COVID-19 pandemic and the Russia Ukraine conflict. WTI crude oil emerges as a principal conduit of volatility spillovers, underscoring its pivotal role in the energy-finance nexus. Five portfolio strategies Minimum Variance, Minimum Correlation, Minimum Connectedness, Minimum R², and Minimum Decomposed R² are constructed and evaluated under systemic stress. While the Minimum Variance Portfolio delivers robust risk-adjusted returns, strategies based on connectedness metrics demonstrate superior resilience during crises. These insights offer valuable implications for policymakers, investors, and scholars concerned with energy market stability, financial contagion, and adaptive portfolio design.
Predicting Intention to Buy Green Electric Vehicles Using an Extended Theory of Planned Behavior Approach
The study investigates how behavioral values, environmental attitudes, subjective norms, environmental social influence, and environmental concern impact the intention of individuals to act pro-environmentally in enhancing the explanatory potential of the existing behavioral theories. The research employed Smart-PLS to determine the measurement and structural models using data obtained on 378 respondents. The findings supported the reliability and validity of all constructs and indicated that behavioral values serve as the most relevant cause of pro-environmental intentions. The behavioral values provided additional support on the role of environment in affecting intention as well as having an indirect impact on intention via environmental attitudes, concern, social influence and subjective norms and therefore the mediating processes are important. The results can be aligned with the Theory of Planned Behavior, Value-Belief-Norm framework, and Construal Level Theory, which state that values play a central role and psychological and social processes reinforce behavior. The research makes contributions to literature through the inclusion of personal and environmental variables into a cohesive approach of explaining sustainable behavioral intentions. In practice, the findings indicate that policymakers, teachers, and institutions ought to establish interventions which can promote environmental values but at the same time promote supportive attitudes, enhance concern and take advantage of social norms and peer pressure. These multidimensional approaches are likely to work more in encouraging pro-environmental behavior in the long-term.
A Panel Threshold Analysis of the Impact of Renewable and Non-Renewable Energy Consumption on Economic Growth in Selected MENA Countries
The study investigates the impact of renewable and non-renewable energy consumption on economic growth in the Middle East and North Africa from 1996 to 2023. The research uses the threshold model methodology to determine the relationship between energy consumption and economic growth, based on GDP, non-renewable energy consumption, and renewable energy consumption. The findings show that the influence of the new energy transition threshold on economic growth depends on the levels of gross domestic product, renewable energy consumption, and fossil fuel energy consumption. The study concludes that the impact of renewable and non-renewable energy consumption on economic growth is non-linear, varying with levels of these factors. The evidence suggests that the behaviours of renewable and nonrenewable energies are similar, which may indicate that the economy is at a single structural level and that structural transformation has not been sufficiently robust. The interaction between renewable and non-renewable energy and economic growth is not restricted to a specific threshold, as each threshold level represents different dimensions of the economic dynamics of the countries. In brief, Heavy reliance on traditional energy sources will result in significant economic resistance, which will negatively impact economic growth. However, with improved renewable energy infrastructure and reduced reliance on traditional or non-renewable energy, this negative impact will transform into a positive effect on long-term economic growth.
Implications of the Growing Deployment of Electric Vehicles in Thailand and Strategic Adaptation of the Fuel Supply Chain
Thailand’s transition toward electric vehicles (EVs), driven by the national “30@30 policy,” is expected to significantly reduce oil consumption and reshape the country’s fuel supply chain. This study examines the impacts of EV adoption on refined petroleum demand and assesses adaptation strategies for key operators across the petroleum supply chain, including refineries, traders, ethanol and biodiesel producers, oil depots, and transport operators. Three energy scenarios—High Oil Demand, National Energy Plan, and Low Oil Demand—were analyzed using the LEAP model and transport-sector energy models to project future energy use and supply under varying levels of EV penetration. The findings indicate that refined petroleum demand will peak around 2028–2030 before declining, with the most substantial reductions occurring in gasoline and diesel consumption, while aviation fuel and LPG remain relatively stable. The study identifies three main adaptation approaches for industry operators: core business development, business integration, and business transformation. Policy recommendations emphasize maintaining consistent fuel policies, strengthening infrastructure systems such as pipelines and fuel depots, and supporting business diversification toward low-carbon energy. Together, these measures are essential to ensure a smooth, balanced, and resilient transition in Thailand’s energy and fuel sectors.
Advanced Time Series Forecasting of Electricity Generation in Turkey: A Comparative Study Using LSTM Models, ARIMA, and PSO - Optimized Holt Trend
This study examines energy production forecasting in Turkey through advanced time series methodologies. The analysis, conducted on annual data spanning the period 1970–2024, encompassed not only aggregate electricity generation but also disaggregated production from coal, natural gas, hydro, and renewable sources, including waste. The modeling framework integrated both conventional and machine learning-based techniques, specifically ARIMA, single-layer and three-layer LSTM architectures, and Holt’s linear method optimized via Particle Swarm Optimization (PSO). Model performance was assessed using widely recognized error metrics, namely Mean Absolute Percentage Error (MAPE), Mean Squared Error (MSE), and Root Mean Squared Error (RMSE). The empirical results demonstrated that the three-layer LSTM model achieved the lowest error values for total, coal, and hydro-based generation, whereas the single-layer LSTM exhibited superior accuracy for natural gas. In contrast, the traditional ARIMA model yielded the most precise forecasts for renewable and waste-based energy. These outcomes underscore that while deep learning models such as LSTM are capable of capturing intricate temporal dynamics when appropriately tuned, conventional models like ARIMA continue to demonstrate robust predictive capability for specific datasets. Overall, the findings confirm that all four approaches provide an acceptable level of forecasting accuracy.
Does Financial Development Reduce Emissions? The Role of Renewable Energy. Evidence from High-Governance Economies
Financial development represents an increasingly recognized yet empirically contested mechanism for addressing climate change. This study investigates the relationship between financial sector deepening and carbon dioxide emissions in sixty high-governance countries from 1995 to 2019. Employing dynamic generalized method of moments estimation, we find that a one percent increase in financial development growth reduces CO2 emission growth by 3.30 percent, while renewable energy expansion contributes an additional 1.74 percent reduction. These effects remain robust across alternative specifications and estimation techniques. The negative relationship emerges specifically in countries with strong institutional frameworks, suggesting that governance quality conditions whether financial systems channel capital toward environmentally beneficial investments. Our findings indicate that financial sector policies represent viable complements to traditional environmental regulations in well-governed economies, demonstrating compatibility between financial deepening and climate mitigation under strong governance conditions.
Multi-Criteria Ordinal Hierarchical Classification to Improve Energy Investment Decisions
Transitioning towards sustainable energy needs decision models able to integrate economic, environmental, and technological factors in conditions of uncertainty. This paper introduces an innovative multicriteria ordinal classification approach based on the so-called HI-INTERCLASS-nB method to support strategic investment decisions in the energy sector. The approach can consider evaluation criteria organized in a hierarchical structure, and capture interactions among financial, environmental, and operational indicators. Unlike traditional approaches, the proposal allows the use of both precise and interval-based data, which improves robustness when the information is incomplete or imprecise. A computational experiment was conducted using data from energy-producing and energy-intensive companies, which are listed in major global markets. The results demonstrate that the proposed approach can effectively determine high-performance investment alternatives, providing stable and interpretable classifications across multiple scenarios. The results also confirm that HI-INTERCLASS-nB can be a valuable decision-support tool for policymakers and investors to promote efficient and sustainable energy strategies.
Renewable Energy as a Driver of Grid Resilience: Evidence and Policy Implications
The increasing penetration of renewable energy sources into power systems makes new grid infrastructure upgrades and more accurate tools for assessing their economic sustainability essential. In this framework, this study examines the economic and financial feasibility of the Sardinia–Corsica–Italy 3 interconnection project using the advanced cost-benefit analysis model (CBA 2.0). The results indicate strong economic convenience: the net present value (NPV) reaches 2110 million €, while the discounted benefit-cost ratio (DBCR) stands at 3.41. The main advantages stem from improved socio-economic welfare and a greater capacity to integrate renewable energy; additional benefits include reduced risks related to energy supply, increased grid resilience, and more efficient management of the Sardinian power system. Sensitivity analyses confirm the robustness of these outcomes, with NPVs ranging between 1977 and 2248 million € and DBCR values between 3.12 and 3.77, variations primarily driven by the discount rate and capital expenditure. The study thus highlights how the central role of renewable energy and grid resilience, combined with advanced CBA methodologies, can support investment decisions consistent with energy transition goals.
The Impact of Energy Intensity, Investment, and Price Shocks on the Manufacturing Sector: ARDL-ECM Evidence from Azerbaijan
This article evaluates the relationship between energy intensity (EI), investment in fixed capital (INVEST), employment (EMP), producer price index (PPI), and real output in Azerbaijan’s manufacturing industry over the period 2007–2024 within the ARDL-ECM framework. Since the ADF tests indicate that the variables have mixed orders of integration, I(0) and I(1), the Bounds test is applied to check for the presence of a long-run relationship, which is confirmed. In the ECM model, the negative and statistically significant error-correction coefficient shows that deviations from equilibrium are corrected rapidly. The results reveal that an increase in EI leads to a decline in real output, while efficiency improvements reduce EI and raise production volume. Growth in EMP positively affects output. INVEST in the manufacturing sector exerts a negative short-run effect due to “installation delays,” but a positive effect with a one-year lag. PPI shocks, especially with lags, have a negative impact. Inference is conducted using HAC/Newey-West robust standard errors. The LM, BPG, RESET, Jarque-Bera, and CUSUM/CUSUMSQ diagnostics confirm that the model’s functional form and stability are satisfactory.
Revisiting Renewable Energy and Foreign Direct Investment: Paradoxical Impacts on Ecological Footprint
This research analyses the influence of foreign direct investment (FDI) and renewable energy usage on China's ecological footprint from 1990 to 2022, employing the Autoregressive Distributed Lag (ARDL) model. The findings indicate that, in the short-term, a 1% increase in renewable energy consumption raises the ecological footprint by 0.022 global hectares (gha) per capita. However, in the long-term, this increase is more pronounced, augmenting the footprint by 0.033 gha per capita. Moreover, foreign direct investment (FDI) exhibits a significant negative relationship with the ecological footprint in the short-term, indicating that such expenditures facilitate environmental enhancements. Nonetheless, over the long term, foreign direct investment does not exert a statistically significant influence on China's ecological footprint. These findings contest traditional assumptions about the environmental advantages of renewable energy and underscore the necessity for improved regulations that optimise renewable energy practices. The study's findings indicate the necessity of encouraging green foreign direct investment to maintain its immediate environmental advantages. Recommendations include diversifying energy sources, strengthening environmental regulations, and integrating technological innovation in FDI-driven sectors to foster long-term sustainability. The paper concludes with recommendations for further research, including sectoral analysis, comparative studies, and the examination of environmental policies in reducing the ecological footprint.
Assessing the Impact of Fiscal Incentives on the Investment Feasibility of Geothermal Projects in Indonesia: A Value-at-Risk approach
This study assesses the impact of fiscal incentives on the investment feasibility and risk profile of geothermal power projects in Indonesia. Geothermal energy is central to the country’s clean-energy transition, yet high exploration costs, long development timelines, and limited fiscal support constrain private investment. To address these challenges, a quantitative analysis was conducted using an integrated Discounted Cash Flow (DCF) model and Value-at-Risk (VaR) analysis. A stochastic financial model for a 50 MW geothermal power plant was simulated over 1000 Monte Carlo iterations across five policy scenarios: Business-as-Usual (BAU), Value-Added Tax (VAT) removal, Land and Building Tax (LBT) removal, tax holiday, and a combined total incentive package. Results show that fiscal incentives improve project profitability while affecting financial volatility. The BAU case yields a mean Net Present Value (NPV) of – USD 8.4 million and an Internal Rate of Return (IRR) of 9.39%, whereas the Total Incentive scenario achieves + USD 0.38 million NPV and 10.03% IRR. The VaR analysis indicates reduced downside loss probability but greater dispersion of returns, suggesting a high-risk, high-return profile. Sensitivity results highlight power-plant EPC and drilling costs as dominant risk drivers.
From Data to Decision: Predictive Modeling of Oil Prices Using AutoML and SHAP Analysis
Machine learning and artificial intelligence (ML/AI), once regarded as opaque “black-box” methods, have become increasingly interpretable due to recent advances in explainable AI (XAI). This study proposes an explainable machine learning framework for forecasting crude oil prices by integrating the H2O AutoML platform with SHapley Additive exPlanations (SHAP), thereby achieving both high predictive accuracy and transparent interpretability. Using daily macro-financial data from January 2015 to September 2025 including oil stocks (XLE), the S&P 500 index, industrial production, and the USD index. The study trains and validates a range of ensemble models, with Gradient Boosting Machines (GBMs) emerging as the best-performing models. The results demonstrate strong out-of-sample forecasting accuracy, measured by RMSE in USD per barrel, across different market conditions. Beyond predictive performance, the explainability analysis reveals that oil stocks (XLE), capturing energy-sector equity valuations, exert the strongest positive influence on crude oil prices, highlighting sectoral transmission channels and portfolio rebalancing effects. In contrast, the S&P 500 and industrial production display nonlinear and state-dependent impacts associated with business cycle dynamics, while the USD index exhibits a predominantly negative relationship, consistent with commodity–currency theory. This framework provides a robust approach to oil price forecasting by integrating automated machine learning with interpretable analytics, offering practical insights for investors, risk managers, and policymakers in volatile energy markets.
How Does Financial Market Development Influence Environmental Sustainability in Saudi Arabia?
The integration of environmental and sustainability goals within Saudi Arabia’s financial regulatory framework has received significant attention to enhance green finance initiatives aligned with Vision 2030. By using the ARDL method with FMOLS, DOLS, and CCR estimators, this study investigates the impact of market-based financial development (FMD), GDP per capita (GDP), energy consumption per capita (ENG), and trade openness (TO) on the overall greenhouse gas emissions of Saudi Arabia (EQ) between 1994 and 2020. Our results indicate that financial development and energy consumption are significant contributors to emissions, as per the carbon content of energy and industrial investment. Also, GDP per capita has a positive effect, and trade openness serves as a moderator, reducing emissions over the long term. Short-run dynamics exhibit rapid convergence to the long-run equilibrium as captured in the negative in statistically significant error-correction coefficient. Based on these results, the Saudi government should encourage financial development management, promote energy efficiency, and utilize trade policies, as these factors are significant for reducing emissions and maintaining sustainable environmental performance in Saudi Arabia.
Assessing the Impact of Cultural Globalization on Renewable Energy in the Era of Environmental Pressures
Renewable energy is widely acknowledged as the most viable option to combat the rising trends of climate change and global warming. Given its significance, a significant number of empirical studies have focused on identifying the factors that can promote renewable energy. However, the role of environmental pressures and cultural globalization has not been the subject matter of many past studies. This study aims to fill this gap by analyzing the influence of cultural globalization and environmental pressures on renewable energy using the novel MMQR approach. The outcomes of the analysis highlight that cultural globalization significantly and positively influences renewable energy from the lowest to the medium levels, while it does not exert any significant influence at the highest levels of renewable energy. Environmental pressures can also foster renewable energy from the lowest to the highest levels. In contrast, economic growth hindered renewable energy across all quantiles, whereas political stability hindered it only at the lower quantiles. Policymakers should take advantage of people-to-people contact and the rising environmental pressures to promote renewable energy consumption.
The Mediating Role of Green Innovation in Islamic Banking between Green Finance and Green Sustainability Performance
Analyzing the interplay between finance, green sustainability performance, and the RBV and DCT within the context of Jordanian Islamic banks, the work creates a conceptual model that constitutes the transformation of resource innovation and financially ethical sustainability outcomes. The Islamic banks' employees’ surveys, quantitatively analyzed using Smart PLS 4 and the PLS-SEM approach, endorsed the proposed model. The findings proved green finance and innovation to be the positive catalysts of sustainability performance and green innovation, respectively, thereby providing direct proof of the PLS-SEM paradigm. Additionally, the findings describe green innovation as a complete mediator of the green finance and sustainability performance paradigm. Conclusively, green innovation is the instrumental model for banks for the conversion of positive financial instruments into positive social and ecological impacts. The Islamic banks, sustainability strategists, and policy formulators translate Islamic and direct net positive financial instruments principles into an innovation platform that generates green transformation. Conceptually, the work integrated the PR and DCT paradigm into the green Islamic finance domain and the Islamic net positive financial principles, resource transformation and innovation.
Effects of the Energy Communities: A Case of Application in Colombia
This article examines the environmental and economic effects of energy communities, considering both short- and long-term impacts. For the long-term analysis, a simulation model was developed to observe the behaviour of variables within the electricity market and their impacts over a 20-year evaluation period. The environmental impact was quantified through avoided emissions in Mt of CO₂ equivalent. In economic terms, the savings from self-generation and the expected revenues from surplus energy sales were calculated, alongside a profitability analysis per user. The results indicate that energy communities could avoid 25 MtCO₂e, while the regulated market could achieve savings $ 18.5 Billion USD, in addition to potential revenues of $ 2 Billion USD. These outcomes arise from the aggregated implementation of photovoltaic systems in households and small businesses within the framework of energy communities.
Greenhouse Gas Emissions Effect on Investor Economic Decisions: Unravelling the Nexus between Corporate Sustainability Performance and Investor Share Ownership Appetite
The greenhouse gas emissions dilemma faced by the Republic of South Africa is undoubtedly significant as evidenced by heavy dependence on coal-fired power plants utilised for generating electricity. Statistical data depicts the country as the ‘culprit’, positioned as the largest greenhouse gas emitter in Africa despite the backdrop of a clarion call to transition towards renewable energy. Notwithstanding that this dilemma is primarily driven by Eskom, numerous companies also contribute a fair share to this phenomenon as they attempt to balance achieving climate change mitigation targets with optimising economic value creation for investors. Inquiring the responsiveness of investors, the study aimed at determining if greenhouse gas emissions attract investor share ownership. The study employed a quantitative research design from a positivist stance to meet this objective. Accordingly, archival data were gathered from FTSE/JSE Responsible Investment Index using judgemental sampling technique. Thus, a short panel data set comprising 19 cross sections yielding 114 observations for six years were utilised for statistical panel data analysis. Adopting first differenced econometric models in data analyses, Panel Vector Autoregression Model (PVAR) for Random Effects Generalized Least Squares (GLS) regression and Random Effects Maximum Likelihood Estimator (MLE) were employed to generate the reported results. The findings indicated that investor share ownership is positively influenced by greenhouse gas emissions. As a result, the findings make notable contribution by providing new insights to investment practices in South Africa within the purview of pursuing climate change mitigation targets.
Environmental Impacts of Blue Economy Initiatives: A Bibliometric Review
Studies on the blue economy are no longer just a national issue, but have become a major global concern. This study aims to affirm global commitment to blue economy initiatives that align with the economic sector, marine ecosystems, and community welfare within the Sustainable Development Goals (SDGs) framework. Using a bibliometric approach, this study maps research development, identifies trends and key topics, and evaluates gaps based on the Scopus database from 2016 to 2025. The results indicate an increase in publications over the past five years, particularly in the areas of sustainable fisheries, marine conservation, and renewable marine energy. Although the economic contributions of the blue economy are increasingly recognized, damage to marine ecosystems from unsustainable practices remains a challenge. Therefore, balancing economic growth with environmental conservation is necessary. The originality of this study lies in its emphasis on less-explored topics, such as blue carbon and socio-economic integration, which can inform future research efforts.
Economic Effects of Digitalization and IT Technologies on the Efficiency and Competitiveness of the Energy Sector
This article analyzes the process of digitalization in the global energy industry, and describes the use of digital IT solutions, new achievements in technology, as well as modern marketing tools. The objective of this article is to assess the impact of new digital technologies on operational activities efficiency, investment appeal and competitiveness of energy sector companies. The analysis uses econometric techniques to industry-level data and the financial performance of leading natural resource firms. The findings reveal that the applications of IT are closely related to enhancements in operational productivity and business process transparency. The digital elements help establish more developed management practices which are centered on accountability and data driven decision-making. Digital marketing instruments and analytical tools also enhance customer engagement and loyalty, as well as enable more precise energy demand predictions. In the end, digital energy transformation acts as a stimulator of investment scaling and sustainable development in the sector, but also provides impetus for technological and managerial innovation. Practically, implications emphasize that energy firms need to concentrate when implementing IT and marketing strategies, indicating interrelated use of them could directly improve firm performance while indirectly enable innovative practices, and sustained development in the long run for energy companies.
Energy Poverty, Artificial Intelligence, Renewable Energy, and Education: Where is Economic Growth? Empirical Study via BVAR-ARDL Approaches
Public education initiatives that have the potential to increase technical innovation and productivity are responsible for Morocco's increasing rate of solarization. The current study seeks to ascertain how Morocco's economic growth is impacted by renewable energy (GGCS), energy poverty, education, artificial intelligence (AI), and health. In order to collect annual data from 1993 to 2023, this study used the ARDL and Bayesian VAR approaches simultaneously for the first time with WDI and ODCE databases of these all variables in the Moroccan context. Form replication based on the bound test was used to confirm a long-term link between the endogenous and exogenous variables. All of our research's hypotheses, however, were eventually confirmed. The ramifications shed light on the intricate connections between Morocco's renewable energy, health, education, artificial intelligence, and economic growth (GGCS). Policymakers should consider these connections when developing sustainable development strategies, particularly when contrasting EG with renewable energy (GGCS), artificial intelligence (AI), health, and education. The current study contributes to the body of prior research by investigating the dynamics of education, AI, health, renewable energy (GGCS), and EG in the Moroccan environment for the first time. It provides empirical evidence of the long-term relationships between these factors while challenging certain conventional wisdoms.
Upstream Gas Portfolio Optimization under Fiscal Rules and Uncertainty: A Systematic Review and Bibliometric Mapping
This study combines a systematic review (in accordance with PRISMA) and bibliometric mapping (VOSviewer & Bibliometrix) to explain how upstream gas portfolio decisions are optimized when fiscal rules limit annual cash flow. The Scopus 2005–2025 corpus of Title–Abstract–Keywords searches (1,149 records) confirm two pillars of the method: stochastic/robust optimization for portfolio sequencing and real options for flexibility in investment time and scale. Trend analysis, intellectual networks, and keyword evolution show the dominance of analytical-decision and reservoir planning themes; conversely, fiscal overlays such as withdrawal caps, cash-flow/budget constraints are still rarely formalized in mainstream models. The SLR synthesis shows that explicitly coding multi-period liquidity constraints materially changes project selection, sequencing, peak cash, and break-even timing compared to the baseline without constraints. The policy implication is a shift from hard caps to multi-period designed caps (with liquidity floors and countercyclical elements) integrated directly into the optimization framework. To balance value and fiscal stability, we recommend a gas-centric and modular portfolio that pairs ENPV with downside risk control objectives (e.g., CVaR/peak cash minimization). The main contribution of this study is to map fiscal gaps in the optimization literature and propose a research direction towards an integrated stochastic–real options framework with an overlay of fiscal rules that enables policy frontier reporting (value vs. stability).
Global Uncertainty and Green Transition: Dynamics Analysis of Stock Market Volatility
This study examines the return and volatility dynamics of Indonesia’s Islamic (Jakarta Islamic Index), green/sustainable (SRI Kehati), and conventional (Composite Stock Price Index) stock markets in relation to economic policy uncertainty, trade shocks, monetary conditions, and energy transition factors. Monthly data are analyzed using an integrated ARDL framework to assess both short- and long-term relationships, and a GARCH(1,1) model to evaluate volatility. The results indicate clear market segmentation. Over the long term, green stock returns are highly sensitive to policy uncertainty, trade disruptions, macroeconomic conditions, and inflation, reflecting a strong reliance on policy stability. Islamic stock returns are mainly influenced by interest rates and energy transition factors, whereas conventional stock returns are primarily affected by monetary conditions and are more resilient. In the short term, policy uncertainty causes immediate declines in Islamic stock returns, green stocks respond to trade and liquidity shocks with multiple lags, and conventional stocks maintain stable momentum. All markets exhibit volatility clustering, with green stocks showing the highest volatility persistence, followed by Islamic stocks, while conventional stocks revert to the mean more quickly. These findings underscore the need for consistent energy and economic policies to support green finance and strengthen financial market stability in emerging economies.
Access to Energy Consumption and Economic Growth: Evidence from South Asian Perspective
This study investigates the relationship between energy access and economic growth in selected South Asian economies, i.e., Pakistan, India, Bangladesh, and Sri Lanka, using panel data from 2000 to 2022. Employing a panel ordinary least squares (OLS) framework with robust standard errors and country-specific effects, the analysis distinguishes between different dimensions of energy access, including electricity access, clean cooking fuel access, and per capita energy consumption. The results reveal that while electricity access alone does not exert a statistically significant immediate impact on GDP growth, per capita energy consumption exhibits a strong positive association with economic performance. In contrast, access to clean fuels for cooking shows a weak negative relationship with short-term economic growth, suggesting transitional and structural adjustment effects. Inflation is found to exert a dampening effect on growth, highlighting the importance of macroeconomic stability. Country-specific results reveal substantial heterogeneity, with Bangladesh and India demonstrating stronger growth effects relative to Sri Lanka. The findings underscore that expanding energy access must be accompanied by reliable supply, productive energy use, and supportive macroeconomic conditions to effectively contribute to economic growth. The study provides policy-relevant insights aligned with Sustainable Development Goals 7 and 8.
Economic Activities and Carbon Dioxide Emissions in Thailand: A Quantile Regression Analysis
This study examines the heterogeneous determinants of carbon dioxide (CO₂) emissions in Thailand using quantile regression to capture variation across the emission distribution. Monthly data from 2015 to 2024 were analyzed, incorporating economic, energy, and demographic indicators such as crude oil production, power consumption, the Leading Economic Index (LEI), Cost, Insurance, and Freight (CIF), tourism, unemployment, population, and the Private Consumption Index (PCI). The analysis reveals significant cross-quantile asymmetry, indicating that emission drivers differ based on intensity. At the lower quantiles, tourism and unemployment are statistically significant, suggesting that low-emission periods are more sensitive to service-sector activity and labor market conditions. At the median and higher quantiles, energy-related variables dominate; power consumption is consistently significant across all quantiles, while crude oil production becomes increasingly important at upper quantiles. Economic indicators such as LEI, CIF, and PCI show weak or inconsistent effects, while population and CIF are not significant at any quantile. These findings highlight the need to enhance energy efficiency, promote renewable energy adoption, and encourage sustainable tourism to support Thailand’s low-carbon transition.
Geopolitical Risk, Financial Development, and CO2 Emissions in BRICS: A Dual-Channel Analysis
In the face of the global climate emergency, understanding the factors influencing CO₂ emissions has become essential for guiding environmental policies. This paper examines the effect of geopolitical risk and financial development on CO₂ emissions in BRICS countries between 1990 and 2023. To this end, we use Caldara and Iacoviello's GPR index (2022) and three financial indicators (private sector credit, bank credit, domestic credit). The reveals that geopolitical risk and financial development, estimated separately, help to reduce emissions. On the other hand, their interaction has a significant and positive effect, suggesting that financial development exacerbates the environmental impact of geopolitical risk. These results highlight the need to strengthen the supervision of financial flows during periods of instability to avoid an aggravating effect on CO₂ emissions.
Organizational Citizenship Behavior and Energy Transition in Energy-Intensive Industries: A Bibliometric Review
This study aims to analyse the existing literature and identify major research trends at the intersection of organizational citizenship behavior and energy transition in energy-intensive industries. Data were retrieved from the Scopus database and include 155 English-language publications published between 2015 and 2025. A bibliometric analysis was conducted using R Studio (Bibliometrix/Biblioshiny) and VOSviewer to examine publication performance, influential journals and authors, geographical distribution, and thematic structures within the research domain. The results show a rapid expansion of research linking organizational behavior with energy transition, reflecting increasing scholarly attention to the behavioral and organizational dimensions of energy efficiency and low-carbon transition. The literature is mainly published in high-quality journals in energy economics, sustainability, environmental management, and organizational studies. Geographically, research activity is concentrated in Asia and Europe, with China emerging as the most productive contributor, followed by several European countries and other emerging economies. Keyword co-occurrence and thematic mapping identify four major research themes: organizational green management and sustainability foundations; pro-environmental and organizational citizenship behaviors and governance mechanisms; energy efficiency, energy consumption, and low-carbon transition dynamics; and system-level energy transition, policy, and stakeholder governance. The study also outlines future research directions to strengthen the integration of organizational citizenship behavior, energy economics, and sustainability perspectives in energy-intensive industries.
Supporting Sustainable Energy Finance through Hierarchical Multi-criteria Sorting of Electricity Generation Technologies
Sustainable finance requires decision-support tools capable of integrating financial indicators with environmental and social risk factors in a transparent and data-driven manner. This study introduces a hierarchical multi-criteria sorting approach for the evaluation of electricity generation technologies, aimed at informing capital allocation and investment screening decisions. The framework relies exclusively on quantitative criteria obtained from public datasets and organizes them into a structured hierarchy encompassing economic performance, technical reliability, system relevance, and environmental and health impacts. Interval-valued evaluations and preference parameters are employed to represent uncertainty and heterogeneity in financial decision contexts. The resulting range-based classifications distinguish technologies according to their overall acceptability from a sustainable finance perspective. Results for the U.S. electricity sector highlight the ability of the approach to support responsible investment decisions under multiple, potentially conflicting financial and sustainability considerations.
The Impact of Financial Inclusion on CO2 Emissions: The Mediating Role of Renewable Energy and the Moderating Role of Institutional Quality
This study uses a fixed-effects regression model with Robust standard errors, employing data from 52 countries between 2017 and 2022 to examine the impact of financial inclusion (FI) on CO2 emissions through the mediating role of renewable energy (RE) and institutional quality. The research results present a multifaceted picture of the impact of FI on CO2 emissions and the role of RE alongside institutional quality. The positive impact of FI on CO2 emissions suggests that the current expansion of access to finance primarily promotes production and consumption in a way that increases demand for traditional energy, thereby increasing emissions. The estimated indirect effects are all negative and statistically significant, implying that FI has the potential to reduce emissions through RE when supported by appropriate institutional frameworks. Current institutional frameworks are not strong enough to reduce emissions, but the interaction between RE and institutional quality could reverse this trend, helping to slow down the rate of CO₂ increase. Based on the results obtained, the study provides recommendations to policymakers and organizations to reduce CO₂ emissions in countries in the future.
Board Gender Diversity as a Moderator: ESG, Sustainability Reporting, and Green Innovation on Firm Value
This study examines and analyzes the influence of Environmental, Social and Governance, Sustainability Reporting and Green Innovation on Firm Value with Board Gender Diversity as Moderation. This study uses a quantitative approach and secondary data. The population in this study are energy sector companies listed on the Indonesia Stock Exchange (IDX). The results of the study show that the independent variables, namely environmental, social and governance, sustainability reporting and green innovation with the moderating variable, namely board gender diversity, together have an influence on firm value. While partially environmental, social and governance has a positive effect on company value, sustainability reporting has a negative effect on company value, green innovation has no effect on firm value. Board gender diversity can moderate the influence of Environmental, Social and Governance and sustainability reporting on firm value. However, board gender diversity does not moderate the influence of green innovation on firm value. This study adds a moderating variable of board gender diversity, which is considered to have a combined influence on the relationship between Environmental, Social and Governance, sustainability reporting and green innovation on firm value which aims to answer the inconsistency of previous research findings.
Economic Growth and Environmental Degradation in Oman: Testing the Environmental Kuznets Curve Hypothesis Using Time Series Analysis
This study investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in Oman, examining the relationship between economic growth and CO2 emissions from 1998 to 2022. Using annual time series data, the study employs unit root tests, vector autoregressive (VAR) models, and Granger causality tests to analyze the dynamics between GDP per capita and environmental degradation. The results reveal that Oman is situated on the upward slope of the EKC, indicating a positive correlation between income levels and CO2 emissions. Both the quadratic and cubic EKC models demonstrate a strong goodness of fit, with the cubic model providing a more nuanced understanding of the non-linear relationship. The Granger causality tests confirm unidirectional causality from economic growth to emissions, while impulse response analysis suggests that Oman has not yet reached the turning point where environmental degradation begins to decline. These findings align with previous research on developing economies, highlighting the challenges of balancing economic growth with environmental sustainability. The study concludes that proactive policy measures, such as investments in renewable energy and stricter environmental regulations, are essential for Oman to transition toward sustainable development. The implications of this research extend to policymakers and stakeholders, emphasizing the need for integrated strategies to achieve the goals of Oman’s Vision 2040 while addressing global climate change challenges.
Nonlinear Effects of Climate Change on Economic Growth in the MENA Region: Does Government Effectiveness Matter?
This study investigates the nonlinear effects of climate change, expressed by temperatures and precipitation patterns, on economic output in the Middle East and North Africa (MENA) region. Using fixed effect panel models for 16 countries over the period 1990-2023, the analysis estimates the temperatures and precipitation thresholds and examines how those thresholds vary across geographic and institutional conditions. The results reveal a robust inverted U-shaped relationship between temperatures and GDP per capita, indicating that moderate warming may initially support economic activity, while higher temperature levels generate adverse growth effects. In contrast, precipitation exerts weak and mostly linear effects on output. Temperature thresholds are found to be higher in North Africa and countries with stronger governance, highlighting the role of institutions in mitigating climate-related economic damages. Overall, the findings point to substantial heterogeneity in climate growth relationships across the MENA region and emphasize that institutional capacity is a key determinant of climate resilience. These results underline the need for climate adaptation strategies that are not only country-specific but also grounded in improvement in governance and public policy effectiveness.
The Influence of Inclusive Finance on Atmospheric Carbon Emissions
Global initiatives towards atmospheric carbon emissions reduction have been vested towards a carbon neutral future, but emerging markets, especially in Africa, with emission reduction challenges may capitalise on inclusive financing as a possible influential tool to carbon emission abatement. This study examines the impact of inclusive finance on carbon emissions per capita in 13 South African Development Community (SADC) countries from 2002 to 2022. Financial inclusion was measured using access to Automated Teller Machines (ATMs), bank branches, and personal remittances. A robust Panel Estimated Generalised Least Squares (EGLS) regression was applied through two models, one a) assessing current-year effects and another b) using lagged years. Results show that having more ATMs in the previous year reduces carbon emissions per capita in the current year, while having more bank branches in the prior year increases them. This suggests that financial inclusion influences carbon emissions per capita and expanding ATM access may benefit both financial inclusion and environmental sustainability. Moreover, traditional financial inclusion channels, such as bank branches, are associated with higher emissions, while more technologically innovative proxies (ATMs), correspond to reductions. This highlights the importance of promoting innovative, technology-driven-sustainable financial service delivery models.
Policy and Behavioral Gaps in Achieving Indonesia’s Renewable Energy Mix Target
The target of achieving 23% renewable energy in the energy mix by 2025 remains distant, as the actual figure in 2024 stands at only 13.1%. This study attempts to review the issue through the lens of the extended Theory of Planned Behaviour (TPB), aiming to understand the core reasons behind the failure to meet this target from the perspective of public behaviour. The focus is on assessing the impact of policy support on public behaviour regarding the adoption of new and renewable energy (NRE). The research employs a quantitative approach, involving 402 respondents from across Indonesia. Data were collected via an online survey and processed using structural equation modelling based on analysis of moment structures (SEM-AMOS). Empirical results demonstrate that all the hypotheses tested were supported. It was shown that policy support has a direct effect on attitude, subjective norms, perceived behavioural control (PBC), and the intention to use NRE. Notably, the hypothesis positing that attitude, subjective norms, and PBC mediate the relationship between policy support and the intention to use NRE was also supported. Furthermore, the public’s evaluation of incentive policies designed to encourage community engagement with NRE received high scores, ranging from 7 to 8.3 on a 10-point scale. Overall, the findings reveal that the low level of NRE utilisation in the energy mix is attributable to limited public awareness of the policy, with 63% of the population unaware of its existence. Therefore, to achieve the target, the government must promptly develop an effective campaign strategy to raise public awareness and understanding of the NRE incentive policy over the long term. As a practical recommendation, the government should immediately implement such a campaign to enhance public knowledge and support for NRE incentives.
Sustainability Versus Financial Fundamentals: What Investors should Watch in ASEAN Firms
This study aims to analyze the influence of sustainability performance, creditworthiness, and capital structure on companies' market value in the ASEAN-6 and to provide practical insights for investors and companies. Balanced panel data from 438 public companies from 2020 to 2024 were obtained from Refinitiv and analyzed using a robust fixed-effects panel data regression approach. This study finds that strong sustainability performance is not adequately rewarded in emerging markets and may even reduce a company's value if it does not deliver economic value. A poor capital structure negatively affects valuation, whereas stronger interest coverage signals financial stability and positively affects Tobin's Q. These findings imply that investors should not rely solely on sustainability scores without examining concrete financial performance evidence. Instead, they are required to monitor a company's ability to service its interest obligations and its debt profile to assess its risk and financial health. Companies are also encouraged to maintain debt at optimal levels, ensure that sustainability efforts create economic value, and maximize operating efficiency to improve market value.
Passengers’ Willingness to Pay for Carbon Offsetting in Thailand’s Aviation Sector: Evidence from Full-Service Airlines
This study investigates passengers' willingness to pay for carbon offsetting within Thailand’s aviation sector, with a focus on full-service airlines. Employing a quantitative methodology, a structured questionnaire was distributed to 400 passengers, and data were analyzed using Structural Equation Modeling (SEM). The results indicate that greater environmental knowledge and concern significantly increase the willingness to pay, with an average rate of 85.97%. Additionally, passengers who have a strong connection to nature and hold positive environmental attitudes are more likely to sup-port carbon offset programs. Key recommendations include enhancing environmental awareness through targeted educational campaigns, providing transparent information about offset options, establishing effective communication channels, and collaborating with environmental organizations. By implementing these strategies, airlines can im-prove passenger engagement in sustainability initiatives, encourage responsible travel behaviors, and support the long-term sustainability of the aviation industry.
Modeling Stock Yield Reaction to Environmental Changes: Does Geopolitical Risk Matter? A VECM Framework in China
This paper examines the impact of air pollution on stock market performance, emphasizing geopolitical risk as a mediator. It explores how air pollution's health effects disrupt investor behavior and financial market dynamics, with geopolitical risk bridging the relationship between air quality, emissions policies, and stock performance, thus highlighting the interplay between environmental and financial systems. This study employs the Vector Error Correction Model (VECM) to analyze both short-term and long-term dynamics among the regressors. Using updated data from A-share listed firms on the Shanghai Composite Index, covering the period 2012–2021, the analysis is supported by rigorous stationarity and cointegration tests to ensure the robustness and reliability of the findings. The long-term results indicate that air pollution and geopolitical risk significantly influence stock yield volatility, with deviations from equilibrium gradually corrected over time. In the short term, there is a significant Granger causality between stock yield and both air pollution and geopolitical risk, highlighting their combined impact on stock market performance. The study shows that air quality index negatively affects stock yield by depressing investor sentiment and driving irrational behaviors, emphasizing its role as both a social challenge and a key driver of financial market stability and economic development.
Arable Land, Climate Change and Female Employment in Agriculture in the Sahel Region
This study provides an empirical investigation of the nexus among arable land, climate change and female employment in agriculture within the Sahel region. The strategic importance of this study in the Sahel region lies in the fact that this sub-region of Africa is in a dire state of rainfall variability, land degradation, desertification, decline in food security, global warming and gender inequality, and thus the Sahel region is under pressure to meet the Sustainable Development Goals (SDGs 5, 13, 14 and 15) in particular within the timeline of 2030, and the African Union Agenda 2063 in general. As such, the policy implications of this study emphasize that, for the SDGs 13, 14 and 15 to be achieved within the Sahel, there is an urgent need for the policymakers in this sub-region to mitigate emission of greenhouse gas and degeneration of arable land through policies and programmes that would foster anti-grazing, sustainable agricultural practices, afforestation and sustainable extractive industries. In the same vein, since climate change induces reduction in female employment in agriculture in the Sahel, any time the policymakers in this sub-region want to achieve the SDGs 5, the policies that foster climate resilience environment should be embarked upon. Also, gender equality should be encouraged and considered when allocating arable land for agricultural purposes.
Determinants of Foreign Direct Investment in Six Fragile African Economies: Panel Data Modeling
Low-income African countries continue to face persistent political, economic, and environmental challenges that constrain their ability to attract foreign direct investment (FDI). Poverty, institutional weaknesses, and recurrent political instability have deterred investors and limited growth. While the relationship between macroeconomic indicators and FDI has been widely studied, existing research has largely focused on relatively stable regions such as Northern and Southern Africa, leaving fragile economies underexplored. This study addresses this gap by analyzing the determinants of FDI inflows in six low-income African countries over the period 2010–2023. Using annual panel data and panel regression models, the analysis reveals that past inflows of FDI exert a strong persistence effect. In addition, gross domestic product (GDP), inflation, and labor force are found to significantly and positively influence FDI, whereas trade shows no significant impact. These findings provide new insights into the determinants of FDI in fragile African economies and highlight important economic policy directions for enhancing investment attractiveness in these regions.
Prioritizing Risks and Challenges in Smart Grid Implementation: An Analytical Hierarchy Process (AHP) Approach
As energy demand increases daily due to economic growth and population expansion, smart grid technology has emerged as an essential innovation for modern power systems. These grids integrate digital technologies, enabling real-time monitoring, control, and enhanced energy efficiency. However, deploying smart grids faces significant challenges, including cybersecurity threats, data privacy concerns, power theft, and communication infrastructure issues. This study prioritizes these challenges using the Analytical Hierarchy Process (AHP). The AHP results highlight the varying contributions of factors to smart grid risks. Cybersecurity emerges as the most critical factor (49.9%), emphasizing its role in preventing disruptions. Power theft (23.1%) significantly impacts economic and operational aspects, while data security and privacy (20%) underscore the need for robust safeguards. Communication infrastructure issues (7%) affect operations, and battery failure is identified as the least critical risk. A consistency check confirms the reliability of judgments with a Consistency Ratio (CR) below 10%. These findings help prioritize and mitigate risks effectively in smart grid systems.
Pathways to Industrial Decarbonization in Thailand Toward Net-Zero 2050
This study develops model-based pathways for achieving net-zero greenhouse gas emissions in Thailand’s industrial sector, integrating policy foresight with quantitative energy system modeling. Using the Low Emission Analysis Platform (LEAP) framework, nine industrial subsectors were analyzed under three transition scenarios—Path of Challenge, Visionary Goal, and Balancing Growth—to assess the techno-economic feasibility of decarbonization through 2065. The model incorporates structural transformation, technology diffusion, and policy enforcement parameters to simulate future energy demand and emission trajectories. Results highlight that policy enforcement and the pace of low-carbon technology adoption are the dominant determinants of industrial emission outcomes. Under the Visionary Goal scenario, which aligns with current national policy direction, Thailand could reach net-zero emissions by 2065; however, this requires an accelerated GHG reduction rate and early deployment of high-impact technologies such as hydrogen and carbon capture, utilization, and storage (CCUS). The Balancing Growth scenario, emphasizing rapid industrial restructuring and early technology commercialization, demonstrates a potential to achieve net-zero before 2050, contingent on industrial emissions peaking between 2025–2030. Conversely, the Path of Challenge scenario—characterized by delayed technology uptake and limited policy intervention—shows that the net-zero target becomes unattainable, with cumulative emissions exceeding the allowable carbon budget by over 30 MtCO₂e. The findings underscore the need for coherent long-term industrial and energy policies that simultaneously promote innovation, strengthen institutional mechanisms such as the forthcoming Climate Change Act, and incentivize early commercialization of emerging technologies. Integrating policy ambition with targeted technology acceleration is essential for Thailand’s industrial sector to align with national and global net-zero trajectories.
Oil Price Fluctuations and Their Impact on Macroeconomic Variables: The Case of South Africa
Oil price volatility has a significant impact on macroeconomic performance, presenting challenges for policymakers in both oil-exporting and oil-importing countries. This study examines the impact of oil price fluctuations on economic growth, inflation, and unemployment in South Africa over the period January 2000 to December 2021, capturing more than two decades of economic and oil market dynamics, including major shocks such as the 2008 global financial crisis, the 2014 oil price collapse, and the COVID-19 pandemic. We explore short- and long-term relationships among these variables using the Johansen cointegration approach and a Vector Error Correction Model (VECM). Unit root tests indicate all series, except inflation, are stationary in first differences, and Granger causality tests reveal non-statistically significant short-run causality. Variance decomposition shows crude oil prices, inflation, and GDP account for a substantial share of unemployment variation over time. The analysis reveals a negative long-term relationship between oil prices and key macroeconomic indicators, suggesting that rising oil prices have an adverse impact on South Africa’s economy. Diagnostic tests confirm model adequacy, with no evidence of heteroscedasticity and normally distributed residuals. These findings underscore the importance of incorporating oil price volatility into macroeconomic planning and the need for continued research on these dynamic relationships.
Can Green Economy Implementation Control Social Costs and Accelerate Welfare? Empirical Evidence from Developing Countries
The United Nations Environment Programme (UNEP) characterizes a green economy as one that enhances human well-being and social fairness while simultaneously mitigating environmental threats and ecological scarcities. This study analyzes the effects of green economy implementation on social cost management and the enhancement of community well-being in emerging nations. The study was carried out in developing nations that have adopted a green economy since 2015, following to the implementation of the Paris Agreement. The research findings indicate that the adoption of a green economy in emerging nations is essential for managing social costs and enhancing societal welfare. Promoting investment in the renewable energy sector, enhancing renewable energy consumption, decreasing CO2 emissions, improving access to clean energy, and generating employment in the green job sector are essential for managing social costs and advancing societal welfare. The sustainable optimization of the green economy is expected to be able to control social costs without neglecting the welfare of people in developing countries.
The Impact of Countries’ Artificial Intelligence Readiness Levels on New Business Establishment: Controlling for Energy Consumption, Economic Growth, Inflation, and Population
This study empirically examines how a country’s AI readiness level affects the establishment of new businesses while controlling for key macroeconomic variables such as energy consumption, economic growth, inflation, and population growth. It specifically highlights Kazakhstan, a country with significant potential for digital transformation and entrepreneurial development, to clarify the relationship between AI readiness indicators and new business startups at the national level. The analysis utilizes subcomponents of the AI Preparedness Index (AIPI) developed by the International Monetary Fund, which includes digital infrastructure, innovation and economic integration, human capital and labor market policies, and regulation and ethics indicators. The World Bank’s “Starting a Business” index is used as a measure of new business establishments. By employing secondary data from various countries, hierarchical regression is applied to assess the additional explanatory power of AI-related indicators on new business formation in a stepwise fashion. The findings indicate that macroeconomic variables such as economic growth, energy consumption, inflation, and population growth have a statistically limited impact on the new business establishment index. In contrast, all sub-indices related to artificial intelligence readiness exert positive and significant effects on new business establishment. Notably, the dimensions of digital infrastructure and regulatory and ethical considerations demonstrate higher explanatory power and effect size. The results underscore that entrepreneurial activity is influenced not only by macroeconomic conditions but also by digital, technological, and institutional capabilities. Therefore, this study emphasizes that AI readiness has become a crucial structural component supporting new business establishment and offers important implications for digital transformation and entrepreneurship policies.
Renewable Energy Transition, Institutional Quality, and CO2 Emissions: Evidence from Next-11 Emerging Economies
This study examines whether renewable energy transition reduces carbon dioxide (CO₂) emissions in emerging economies and whether institutional quality moderates this relationship. Using a balanced panel of 11 Next-11 countries over 2000–2023, we estimate two-way fixed-effects models with clustered standard errors to address unobserved heterogeneity, cross-sectional dependence, and serial correlation. Renewable energy transition is measured by the share of renewables in total final energy consumption, while institutional quality is constructed as a composite index from the Worldwide Governance Indicators using principal component analysis. The results reveal a robust negative relationship between renewable energy transition and CO₂ emissions. A one-unit increase in renewable energy share is associated with a 3.6 log-point (approximately 97%) reduction in per capita emissions. Institutional quality also significantly reduces emissions, highlighting the importance of effective governance. The interaction term between renewable energy and institutional quality is positive but statistically insignificant (β₃ = +0.069, p = 0.47), suggesting that institutional quality does not significantly moderate renewable energy effectiveness. This finding does not support the expected synergy between institutions and renewable energy transition. Our results indicate that renewable energy expansion alone may be insufficient for deep decarbonization in emerging economies without supporting institutional frameworks. The study contributes to the energy–environment literature by providing updated empirical evidence on the complementary roles of renewable energy transition and institutional quality in fast-growing economies.
Impact Assessment of Fiscal Policy on Employment in Morocco: A Computable General Equilibrium Model Analysis
Employment is a key driver of economic prosperity and a crucial tool in the fight against poverty. As such, governments must prioritize job creation in their policy agendas. This study focuses on the case of Morocco to assess the impact of expansionary fiscal policy on employment, using a Computable General Equilibrium (CGE) model, specifically the PEP-1-1 framework. Through simulations involving reductions in personal income tax and corporate tax, as well as increases in public investment in education and infrastructure, the findings indicate positive effects on job creation. However, these effects remain limited due to the slow pace of structural transformation in the Moroccan economy. Moreover, the comparative analysis reveals that fiscal policy measures have a more substantial impact on employment than public investment policies.
Pathways to Decarbonization in Indonesia: Mediating Effects of Renewable Energy and Energy Efficiency on the Economic Growth–Emission Nexus
The transition toward low-carbon development has emerged as a critical global agenda, especially for developing countries like Indonesia, which are heavily reliant on fossil fuels. This study investigates the mediating role of renewable energy and energy efficiency in the relationship between economic growth and carbon emissions in Indonesia from 2000 to 2023. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study finds that economic growth significantly increases carbon emissions, while both renewable energy and energy efficiency exert a negative impact on emissions. Moreover, these two variables partially mediate the growth–emissions nexus, with energy efficiency showing a stronger mitigation effect than renewable energy. The research also highlights that industrial energy efficiency yields greater emission reductions compared to the transport sector. Moderating effects of trade openness and institutional quality are found to enhance the effectiveness of energy policies. The study concludes that a combined strategy involving clean energy adoption, sectoral energy efficiency, and institutional reform is essential for achieving Indonesia's low-carbon development goals. The findings contribute both theoretically and practically to the literature on decarbonization and sustainable energy transitions in emerging economies.
Socio-Economic Trade-offs of Large Hydropower Development for Community Livelihoods in Bagmati Province, Nepal
Large hydropower development is widely promoted as a pathway for sustainable energy transition and economic growth, particularly in mountainous countries such as Nepal. However, its socio-economic implications at the community level remain contested. This study examines the impacts of large hydropower development on community livelihoods in Nepal’s Bagmati Province using secondary time-series data covering the period 2015–2024. Guided by the Sustainable Livelihoods Framework, the study employs descriptive analysis, correlation analysis, multiple regression, and factor analysis to assess relationships between infrastructure development, employment, income, environmental impacts, and displacement. The results reveal a clear development–displacement paradox. While infrastructure development and household income increased over time, environmental impacts emerged as the strongest driver of displacement, outweighing the mitigating effects of economic and infrastructure gains. Employment and income improvements alone were insufficient to offset livelihood disruption. Factor analysis identified two dominant pathways: an economic–infrastructure pathway that enhances physical and financial capital, and an environmental–displacement pathway that erodes natural capital and increases livelihood vulnerability. The findings highlight that environmental degradation plays a central role in shaping livelihood outcomes in hydropower-affected areas. The study contributes empirical evidence from a Himalayan context and underscores the need for hydropower policies that prioritize environmental safeguards, livelihood restoration, and inclusive development to achieve socially sustainable energy transitions.
Asymmetric Environmental Effects of Energy-Related Uncertainty: The Role of Renewable Energy
This study examines the relationship of energy-related uncertainty (EUI) and environmental quality, measured by the per-capita CO2 emissions, using panel data for 27 countries over the period 2000-2023. Employing a CS-ARDL framework, our analysis reveals that EUI exacerbates environmental degradation in the short run but contributes to the reduction of CO2 emissions in the long run. We further incorporate renewable energy penetration as a moderating factor and find that the long-run environmental benefit is conditional on the maturity of a country's renewable energy sector. In economies with a robust renewable sector, energy-related uncertainty prompts firms and households to shift toward stable and clean domestic energy sources. Causality analysis confirms this interpretation, revealing a unidirectional causal flow from EUI to CO₂ emissions, while finding no link between EUI and other macroeconomic variables. Ultimately, our findings suggest that building a robust, renewable-based energy system is important for creating resilience against the negative environmental impacts of energy-related uncertainty.
ESG Performance and AI Governance: Evidence from Thailand
This study examines how environmental, social, and governance (ESG) performance affects artificial intelligence (AI) governance. Using panel data from companies listed on the Stock Exchange of Thailand, this study employs ordinary least squares regression to test the hypothesis. The findings suggest that ESG performance has a significant positive association with AI governance, supporting the notion that ESG-related capabilities in compliance, transparency, and stakeholder engagement can be used as an internal governance framework for mitigating emerging AI-related risks. However, this translation is not automatic but depends critically on leadership. The positive moderating effects of Gen X and Gen Y CEOs, contrasted with the insignificant and negative moderation observed for Baby Boomer CEOs, suggest that younger leaders—who are generally more digitally oriented—are better able to convert ESG commitments into concrete AI policies, controls, and oversight mechanisms. Overall, the findings reveal a dual governance structure wherein ESG performance serves as the foundational "hardware" for responsible AI, while the generational characteristics of CEOs act as the "software" that influences the efficacy of leveraging these ESG capabilities to establish and maintain AI governance.
Strategic Intelligence and Digital Transformation in Energy Economics: Pathways to Renewable Energy Expansion and ESG-Aligned Sustainability
The digital transformation is gradually transforming the energy systems by transforming the manner in which information is generated, processed and incorporated in strategic decision-making. In the third world, but where energy transformation is limited by institutional weakness, skills and capabilities, and governance issues, the degree to which digitalization positively contributes to renewable energy growth and plausible environmental, social, and governance (ESG) performance is lopsided. This is a review that incorporates interdisciplinary studies in the fields of energy economics, information systems, sustainability management, and human resource management to understand how the digital transformation affects the renewable energy consumption and the sustainability of ESG outcomes through the intermediation of strategic intelligence and human resource sustainability. The synthesis shows that the generation of transition value on the basis of digital technologies is not achieved by means of data accumulation but organizational capabilities that allow performing higher level analytics, future planning, and staff adaptation. It also demonstrates the existence of nonlinear impacts, gaps in governance, and risks of greenwashing that may deter the sustainability results without the devising supplementary human and institutional abilities. Elaborating on these insights, the paper constructs an integrative framework and a collection of propositions on the ways in which digital transformation, strategic intelligence and sustainable human resource management mutually contribute to the energy and ESG outcomes in developing economies. The review ends with the description of the managerial and policy implications and priority directions to be taken in further empirical research.
Drivers of Green Trust and Green Citizenship Behavior in Promoting Biofuel Adoption: Evidence from E10 Bio-gasoline in Vietnam
The transition toward low-carbon energy systems has positioned biofuels as an important short- to medium-term solution for reducing greenhouse gas emissions in the transportation sector, particularly in emerging economies. In Vietnam, the forthcoming mandatory adoption of E10 bio-gasoline raises concerns regarding consumer acceptance due to past challenges in earlier biofuel programs. This study investigates the psychological mechanisms through which functional attributes of E10 influence consumers’ adoption intentions. Drawing on the Stimulus–Organism–Response (S-O-R) framework, Social Exchange Theory, and the Theory of Planned Behavior, this study examines the effects of price value, perceived product quality, and facilitating conditions on green trust and green citizenship behavior, and their subsequent impact on intention to use E10 bio-gasoline. A cross-sectional survey using convenience sampling was conducted with 482 consumers in Ho Chi Minh City, Vietnam. The proposed model was analyzed using partial least squares structural equation modeling (PLS-SEM). The results reveal that price value, perceived product quality, and facilitating conditions significantly enhance green trust and green citizenship behavior. In turn, both green trust and green citizenship behavior exert strong positive effects on consumers’ intention to use E10, acting as critical mediating mechanisms. This study extends the biofuel adoption literature by emphasizing the role of trust-based and civic-oriented mechanisms in promoting sustainable energy consumption under a mandatory policy context, and offers practical implications for policymakers and energy providers in emerging economies.
Digital Green Finance, FinTech Innovation, and Corporate Environmental Performance: Evidence from Global Firms
Digital green finance (DGF) the combination of green financial tools with FinTech systems like blockchain-based bonds, AI-driven credit scoring, and digital disclosure platforms—has become an important way to get climate-aligned capital moving. However, its efficacy in the context of economic policy uncertainty (EPU) remains empirically insufficiently examined. This study investigates the correlation between green finance (GF) and corporate environmental performance (CEP), as well as the influence of digitalization and policy instability on this relationship. We use a balanced panel of 1,280 listed non-financial companies from nine economies (the US, the UK, Germany, France, the Netherlands, Sweden, Japan, Canada, and China) between 2012 and 2024. We use two-way fixed effects, instrumental variables (IV/2SLS), propensity score matching with difference-in-differences (PSM-DID), triple interaction models, and sectoral heterogeneity tests. We find that GF significantly improves CEP by giving companies credible decarbonization capital and making environmental disclosure stronger. This is in line with stakeholder theory and the resource-based view. However, this effect diminishes at elevated EPU levels, consistent with real options theory: policy volatility increases risk premiums and postpones irreversible green investment. Digitalization significantly enhances the GF–CEP connection and partially mitigates the dampening influence of EPU. This suggests that FinTech-facilitated transparency, traceability, and monitoring bolster the credibility and sustainability of green investment, even amid volatile policy contexts. The effect is strongest in sectors that emit a lot of pollution and are going through a lot of changes, but these sectors are also the most likely to be affected by policy uncertainty. These results show that DGF is not only a way to make things more efficient, but also a way to keep institutions stable. The research provides novel cross-national causal evidence regarding the interplay of finance, technology, and policy in shaping firms' environmental outcomes on a large scale.
The Role of ESG and Governance Quality in Shaping Fintech Development Across MENA: Evidence from Empirical Data
This article investigates the effect of ESG performance and governance quality on FinTech adoption in energy companies from the Middle East and North Africa region (MENA). The study, based on 1,616 firm-year observations over the period of 2010 to 2023 seeks to understand the antecedents of FinTech adoption in sub-sectors including Oil & Gas (O&G), Solar, Wind, Hydro, Nuclear, Bioenergy and Utilities by examining extent board characteristic and regulatory compliance signaling effect of transparency theories and ESG initiatives. The study found that the superior ESG higher ESG performance enhances significantly the adoption of Fintech according to Fixed-Effects, Random Effects, and Dynamic Panel data inference. Firms with smaller, more independent and more gender-diverse boards and strong compliance and transparency mechanisms are better able to embrace digital innovations. There are particularly strong ESG–FinTech connections among renewable and utility companies, highlighting the important link between sustainability practices and digital transformation. Implications are drawn in line with the Resource-Based View, stressing ESG and governance as internal capabilities, and Stakeholder Theory emphasising transparency and accountability towards external stakeholders. For energy leaders and policymakers, ESG-motivated governance reforms can help to speed up the take-up of FinTech, encourage innovation, as well as ensure MENA’s energy sector has sustainable futureproofing.
Do Fluctuations in Energy Sector Matter for Monetary Policy? An ARDL and NARDL Approach
The relationship between monetary policy and the energy industry in the Republic of Kazakhstan was examined using statistical indicators from the official website of the World Bank spanning 29 years (1994–2022). The following variables were used: Domestic credit to private sector by banks, Official exchange rate, Inflation, Alternative and nuclear energy, Combustible renewables and waste, Electric power consumption, Renewable energy consumption, Fossil fuel energy consumption, Electricity production from coal sources, Energy use, Electricity production from oil sources, and Foreign direct investment. In the estimation, Autoregressive Distributed Lag and Non-Linear Autoregressive Distributed Lag models were applied and appropriate tests were conducted. The models yielded findings indicating a number of interrelations between the variables. As observed, monetary policy is closely linked to the energy industry, if not connected directly. Namely, it was found that a number of energy indicators affect inflation. We hope these levers can be used to shape the nation’s inflation policy. This study and findings will be useful for other academics, as there is a lack of research in this area.
Digitally Enabling Environmental Agility through a Dynamic Capabilities Framework with Digital Twins and SCOR
In response to mounting environmental volatility and regulatory pressures, supply chains (SCs) must evolve from efficiency-driven systems into environmentally agile networks. This study introduces the concept of Environmental Agility (EA)—the capability of a SC to sense, respond to, and reconfigure around environmental disruptions in real time. We develop a novel conceptual framework that integrates Digital Twin (DT) technologies with the Dynamic Capability View (DCV), the Sense-and-Respond (S&R) paradigm, and the Supply Chain Operations Reference (SCOR) model to operationalize this emerging capability. The framework embeds environmental sensing, predictive simulation, and adaptive reconfiguration into SCOR processes, enabling organizations to reduce emissions, optimize resource flows, and comply with sustainability mandates dynamically. Grounded in a design science methodology and validated through analytical generalization from industry-based DT applications, the model demonstrates both conceptual rigor and contextual relevance. This study contributes to sustainable SC theory by positioning digital twins as enablers of dynamic environmental capabilities and recasting SCOR as a responsive, eco-intelligent infrastructure.
Blockchain-based FinTech and ESG Compliance in Energy Supply Chains: The Moderating Role of Supply Chain Governance
This investigation aims at analyzing the interaction between the development of financial technology (FinTech) based on the principle of blockchain and compliance with environmental, social and governance (ESG) criteria in the world of energy supply chains, with a special focus on the moderating role played by supply-chain governance. In view of the escalating regulatory and increasing stakeholder pressures and robustness of sustainability risks plaguing the energy supply chains, digital technologies-a form of blockchain-based FinTech solutions-are increasingly being taken into consideration as tools that can create enhanced transparency, traceability and accountability. A quantitative, cross sectional research design was adopted, and data were gathered using surveys to be distributed to firms involved in energy supply chain and fuel distribution networks operating within the Jordan. The proposed model was evaluated using Partial Least Squares Structural Equation Modelling (PLS-Sem) both for Direct and moderating effects. Empirical findings show that the adoption of FinTech via blockchain has a significant positive impact on ESG compliance in the energy supply chains, which hints blockchain-enabled transparency, smart contracts, and financial integrating platforms have a substantive role in supporting ESG compliance. However, the moderating role of supply chain governance was not supported, suggesting that blockchain-based FinTech may act as a governance-neutral or governance-substituting, built mechanism by putting monitoring and enforcement features directly into digital infrastructures. The study makes a contribution to the literature by presenting empirical evidence from an emerging market setting as well as by challenging common assumptions about the conditional role of governance in digital sustainability initiatives. Practically, the findings provide policy-relevant information to regulators and decision-makers in the energy sector who might want to harness digital finance solutions to drive their ESG compliance policy.
A Conceptual Framework Linking Environmental Disclosure, Performance, and Foreign Direct Investment in Developing Countries
This study proposes a conceptual framework explaining how environmental performance, environmental information disclosure, macroeconomic fundamentals and institutional quality jointly influence Foreign Direct Investment (FDI) inflows in developing countries. The model argues that environmental performance alone is insufficient to attract sustainable FDI unless it is supported by transparent disclosure and credible institutional structures. Environmental information disclosure is presented as a key mediating mechanism that enhances investor confidence by reducing information asymmetry, while institutional quality is introduced as a moderating factor that shapes the credibility and effectiveness of environmental improvements. Macroeconomic fundamentals are integrated as essential structural conditions that frame investor responses to environmental and governance signals. The framework contributes to the literature by offering an integrated perspective on sustainable FDI attraction and highlights important policy implications for developing economies seeking to strengthen their environmental credibility, transparency systems and institutional governance.
Education-Conditioned Foreign Direct Investment and Sustainable Development: A Complementarity Perspective
This study examines the relationship between foreign direct investment and sustainable development from a complementarity perspective, emphasizing the conditioning role of education. While foreign direct investment is often viewed as a catalyst for development, its contribution to sustainable development remains highly heterogeneous across countries. Drawing on the absorptive capacity framework, the study argues that foreign direct investment enhances sustainable development only when host economies possess sufficiently strong educational foundations. Using panel data for 72 countries over the period 2008–2022, the analysis employs a hierarchical Bayesian modeling approach to account for unobserved cross country heterogeneity and interaction effects. Sustainable development is measured using the Sustainable Development Goals Index, capturing economic, social, and environmental dimensions. The empirical model includes foreign direct investment, education, their interaction, and key macroeconomic and institutional controls. The results show that foreign direct investment does not promote sustainable development when considered in isolation and may even exert adverse effects. In contrast, education has a robust positive association with sustainable development. Most importantly, the interaction between foreign direct investment and education is positive and statistically meaningful, particularly in middle income and low income countries.
The Causality between Oil price, Financial Market Uncertainty and Economic Policy Uncertainty in the United States
This study investigates the causal relationships between uncertainty measures and oil price dynamics, using monthly data over the period from February 1990 to September 2024. The autoregressive distributed lag model (ARDL) bound test is applied to examine the existence of a long-run relationship between the variables, while the Granger causality test in a Vector Autoregressive (VAR) framework is conducted to examine the direction of the short-run causality. To investigate the long-run causal relationships between uncertainty and oil prices, the Toda and Yamamoto test in an Augmented VAR (AVAR) is performed. The empirical results reveal no long-run cointegration among the variables. In the short run, there is a unidirectional causality from oil prices to economic policy uncertainty, while financial market uncertainty directly causes oil price movements. Additionally, both uncertainty measures indirectly cause oil prices through oil demand. The long-run causality results indicate a bidirectional causality between oil prices and economic policy uncertainty, while a unidirectional causality runs from financial market to oil prices. In addition, oil supply and financial market uncertainty indirectly cause oil prices through economic policy uncertainty. Unlike the short-run findings, the long-run results suggest that uncertainty does not cause oil prices through the demand channel.
Mapping Sovereign Wealth Fund Strategies for Energy Transition and Sustainable Development: A Two-Decade Bibliometric Analysis
This paper provides a systematic overview of the development of scholarly research on SWF strategies by examining key thematic patterns, prominent contributors, institutional involvement, and long-term publication dynamics through a bibliometric lens. The study is based on a dataset of 171 peer-reviewed articles retrieved from the Scopus database, covering the period from 2008 to 2025. Multiple bibliometric techniques including citation analysis, co-citation mapping, bibliographic coupling, co-authorship analysis, and keyword co-occurrence were applied using VOSviewer and the Bibliometrix package to ensure analytical rigor and transparency. The results identify five dominant research clusters within the SWF literature: macroeconomic and political dimensions, ESG and sustainability-oriented strategies, institutional investment behavior, financial performance outcomes, and country-specific or contextual perspectives. Although academic interest in SWFs has grown over time, the literature remains fragmented, with limited international collaboration and insufficient coverage of developing and resource-dependent economies. This study is subject to certain limitations, as it relies solely on publications indexed in the Scopus database, which may result in the underrepresentation of recent high-impact studies due to citation delays or database constraints. Despite these limitations, the findings offer meaningful insights for policymakers, academics, and fund managers by outlining prevailing research trends, identifying underexplored areas, and highlighting opportunities for deeper interdisciplinary and cross-national collaboration. Overall, this study delivers a comprehensive bibliometric synthesis of SWF strategy research and proposes future research directions to support more sustainable and strategically aligned sovereign wealth management practices.