IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i14p5836-d1431555.html
   My bibliography  Save this article

Going Sustainable or Going Extinct: The Consequences of Clean Technologies, Green Finance, and Natural Resources on the Environment

Author

Listed:
  • Md. Emran Hossain

    (Department of Agricultural Science, Texas State University, San Marcos, TX 78666, USA)

  • Ehsan Ullah

    (Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia)

  • Mohd Ziaur Rehman

    (Department of Finance, College of Business Administration, King Saud University, P.O. Box 71115, Riyadh 11587, Saudi Arabia)

  • Mohammad Haseeb

    (Department of Management Studies, Graphic Era Deemed to be University, Dehradun 248002, Uttarakhand, India)

  • Miguel Angel Esquivias

    (Faculty of Economics and Business, Airlangga University, Surabaya 60286, Indonesia)

Abstract

Although “green” and “clean” are key terms in sustainable environmental development, the literature on the relationship between green finance, clean environmental technology, and a sustainable environment is lacking. Furthermore, the exploitation of natural resources may provide a distinctive perspective on this interconnection, contributing to more promising policy ramifications for the future planet. Thus, this study examines the impact of sustainable environmental technologies, green finance, natural resource rents, and economic growth on environmental sustainability, proxied by the novel “Environmental Sustainability Index (ESI)”. This analysis utilizes data spanning from 2000 to 2021 for China, applying the cutting-edge “augmented autoregressive distributed lag (AARDL)” model. The findings indicate that sustainable environmental technologies do not effectively enhance long-term environmental sustainability, but rather provide a positive contribution to the environment in the short term. In addition, economic expansion and the exploitation of natural resources have adverse effects on environmental sustainability, both in the near term and over an extended period. Nevertheless, green finance has a significant role in promoting environmental sustainability in China. This study further reveals the causal relationship between the chosen variables. This study highlights the necessity of developing a comprehensive strategy aimed at enhancing environmental sustainability and green finance. This can be achieved by allocating funds towards the advancement of clean environmental technology and the extraction of eco-friendly natural resources.

Suggested Citation

  • Md. Emran Hossain & Ehsan Ullah & Mohd Ziaur Rehman & Mohammad Haseeb & Miguel Angel Esquivias, 2024. "Going Sustainable or Going Extinct: The Consequences of Clean Technologies, Green Finance, and Natural Resources on the Environment," Sustainability, MDPI, vol. 16(14), pages 1-18, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5836-:d:1431555
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/14/5836/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/14/5836/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
    2. Murat Cetin & Harun Demir & Selin Saygin, 2021. "Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 47-69, July.
    3. Abdulrasheed Zakari & Irfan Khan, 2022. "The Introduction of Green Finance - A Curse or a Benefit to Environmental Sustainability?," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-5.
    4. Andrew Adewale Alola & Tomiwa Sunday Adebayo, 2023. "Are green resource productivity and environmental technologies the face of environmental sustainability in the Nordic region?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 760-772, April.
    5. Li, Kai & Ma, Minda & Xiang, Xiwang & Feng, Wei & Ma, Zhili & Cai, Weiguang & Ma, Xin, 2022. "Carbon reduction in commercial building operations: A provincial retrospection in China," Applied Energy, Elsevier, vol. 306(PB).
    6. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    7. Joseph E. Stiglitz, 1974. "Growth with Exhaustible Natural Resources: The Competitive Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 139-152.
    8. Chen, Jie & Huang, Shoujun & Ajaz, Tahseen, 2022. "Natural resources management and technological innovation under EKC framework: A glimmer of hope for sustainable environment in newly industrialized countries," Resources Policy, Elsevier, vol. 79(C).
    9. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    10. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    11. Ozili, Peterson Kitakogelu, 2022. "Green finance research around the world: a review of literature," MPRA Paper 114899, University Library of Munich, Germany.
    12. Bufan Zhang & Yifeng Wang, 2021. "The Effect of Green Finance on Energy Sustainable Development: A Case Study in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(12), pages 3435-3454, September.
    13. Joseph Stiglitz, 1974. "Growth with Exhaustible Natural Resources: Efficient and Optimal Growth Paths," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 123-137.
    14. Stephen J. Leybourne & Paul Newbold, 1999. "The behaviour of Dickey-Fuller and Phillips-Perron tests under the alternative hypothesis," Econometrics Journal, Royal Economic Society, vol. 2(1), pages 92-106.
    15. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    16. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 104-110, February.
    17. Umar, Muhammad & Safi, Adnan, 2023. "Do green finance and innovation matter for environmental protection? A case of OECD economies," Energy Economics, Elsevier, vol. 119(C).
    18. Philipp Babcicky, 2013. "Rethinking the Foundations of Sustainability Measurement: The Limitations of the Environmental Sustainability Index (ESI)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 133-157, August.
    19. Robert McNown & Chung Yan Sam & Soo Khoon Goh, 2018. "Bootstrapping the autoregressive distributed lag test for cointegration," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1509-1521, March.
    20. Karunanithi Kriskkumar & Niaz Ahmad Mohd Naseem & Wan Ngah Wan Azman-Saini, 2022. "Investigating the Asymmetric Effect of Oil Price on the Economic Growth in Malaysia: Applying Augmented ARDL and Nonlinear ARDL Techniques," SAGE Open, , vol. 12(1), pages 21582440221, March.
    21. Xiaochun Zhao & Laichun Long & Qun Sun & Wei Zhang, 2022. "How to Evaluate Investment Efficiency of Environmental Pollution Control: Evidence from China," IJERPH, MDPI, vol. 19(12), pages 1-18, June.
    22. Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
    23. Song, Malin & Xie, Qianjiao & Shen, Zhiyang, 2021. "Impact of green credit on high-efficiency utilization of energy in China considering environmental constraints," Energy Policy, Elsevier, vol. 153(C).
    24. Hossain, Mohammad Razib & Rej, Soumen & Awan, Ashar & Bandyopadhyay, Arunava & Islam, Md Sayemul & Das, Narasingha & Hossain, Md Emran, 2023. "Natural resource dependency and environmental sustainability under N-shaped EKC: The curious case of India," Resources Policy, Elsevier, vol. 80(C).
    25. Erti Jiaduo & Md. Golam Kibria & Nazhat Nury Aspy & Ehsan Ullah & Md. Emran Hossain, 2023. "The Impact of Agricultural Employment and Technological Innovation on the Environment: Evidence from BRICS Nations Considering a Novel Environmental Sustainability Indicator," Sustainability, MDPI, vol. 15(20), pages 1-21, October.
    26. Siche, J.R. & Agostinho, F. & Ortega, E. & Romeiro, A., 2008. "Sustainability of nations by indices: Comparative study between environmental sustainability index, ecological footprint and the emergy performance indices," Ecological Economics, Elsevier, vol. 66(4), pages 628-637, July.
    27. Montassar Kahia & Anis Omri & Bilel Jarraya, 2020. "Does Green Energy Complement Economic Growth for Achieving Environmental Sustainability? Evidence from Saudi Arabia," Sustainability, MDPI, vol. 13(1), pages 1-12, December.
    28. Lee, Chien-Chiang & Chang, Chun-Ping, 2008. "New evidence on the convergence of per capita carbon dioxide emissions from panel seemingly unrelated regressions augmented Dickey–Fuller tests," Energy, Elsevier, vol. 33(9), pages 1468-1475.
    29. Zhang, Dongyang, 2023. "Does green finance really inhibit extreme hypocritical ESG risk? A greenwashing perspective exploration," Energy Economics, Elsevier, vol. 121(C).
    30. Halkos, George & Gkampoura, Eleni-Christina, 2021. "Where do we stand on the 17 Sustainable Development Goals? An overview on progress," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 94-122.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pata, Ugur Korkut & Ertugrul, Hasan Murat, 2023. "Do the Kyoto Protocol, geopolitical risks, human capital and natural resources affect the sustainability limit? A new environmental approach based on the LCC hypothesis," Resources Policy, Elsevier, vol. 81(C).
    2. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    3. Ricker, Martin, 1997. "Limits to economic growth as shown by a computable general equilibrium model," Ecological Economics, Elsevier, vol. 21(2), pages 141-158, May.
    4. Pal, Debdatta & Mitra, Subrata Kumar, 2017. "The environmental Kuznets curve for carbon dioxide in India and China: Growth and pollution at crossroad," Journal of Policy Modeling, Elsevier, vol. 39(2), pages 371-385.
    5. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    6. Shahbaz, Muhammad & Solarin, Sakiru Adebola & Hammoudeh, Shawkat & Shahzad, Syed Jawad Hussain, 2017. "Bounds testing approach to analyzing the environment Kuznets curve hypothesis with structural beaks: The role of biomass energy consumption in the United States," Energy Economics, Elsevier, vol. 68(C), pages 548-565.
    7. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
    8. Shahbaz, Muhammad & Solarin, Sakiru Adebola & Hammoudeh, Shawkat & Shahzad, Syed Jawad Hussain, 2017. "Bounds Testing Approach to Analyzing the Environment Kuznets Curve Hypothesis: The Role of Biomass Energy Consumption in the United States with Structural Breaks," MPRA Paper 81840, University Library of Munich, Germany, revised 07 Oct 2017.
    9. Bölük, Gülden & Mert, Mehmet, 2015. "The renewable energy, growth and environmental Kuznets curve in Turkey: An ARDL approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 587-595.
    10. Ugur Korkut Pata, 2021. "Do renewable energy and health expenditures improve load capacity factor in the USA and Japan? A new approach to environmental issues," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1427-1439, December.
    11. Karasoy, Alper, 2022. "Is innovative technology a solution to Japan's long-run energy insecurity? Dynamic evidence from the linear and nonlinear methods," Technology in Society, Elsevier, vol. 70(C).
    12. Obsatar Sinaga & Mohd Haizam Mohd Saudi & Djoko Roespinoedji & Mohd Shahril Ahmad Razimi, 2019. "The Dynamic Relationship between Natural Gas and Economic Growth: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 388-394.
    13. Kumar, Nikeel Nishkar & Patel, Arvind, 2023. "Nonlinear effect of air travel tourism demand on economic growth in Fiji," Journal of Air Transport Management, Elsevier, vol. 109(C).
    14. Fabian Knorre & Martin Wagner & Maximilian Grupe, 2021. "Monitoring Cointegrating Polynomial Regressions: Theory and Application to the Environmental Kuznets Curves for Carbon and Sulfur Dioxide Emissions," Econometrics, MDPI, vol. 9(1), pages 1-35, March.
    15. Carmen van der Merwe & Martin de Wit, 2021. "An In-Depth Investigation into the Relationship Between Municipal Solid Waste Generation and Economic Growth in the City of Cape Town," Working Papers 07/2021, Stellenbosch University, Department of Economics, revised 2021.
    16. B. Venkatraja, 2021. "Does China exhibit any evidence of an Environmental Kuznets Curve? An ARDL bounds testing approach," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 88-110,111-.
    17. Thomas Bassetti & Nikos Benos & Stelios Karagiannis, 2013. "CO 2 Emissions and Income Dynamics: What Does the Global Evidence Tell Us?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(1), pages 101-125, January.
    18. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    19. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    20. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5836-:d:1431555. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.