Examining the integrated sustainability perspective among Russia, UAE, and Iran: using the SEY model to estimate sustainability elasticities and spillovers

Integrated sustainability proposes a pioneering perspective in the twenty-first century due to its focus on simultaneously mitigating economic recession, environmental pollution, and social inequalities, especially in developing and emerging economies. In this regard, this paper aims to test the integrated sustainability perspective across Russia, UAE, and Iran by estimating the sustainability elasticities and spillovers among their economic, environmental, and social aspects. It uses the SEY model involving econometric techniques of autoregressive vector (VAR), simultaneous equations system, and causality relationships between 1972 and 2019. The results show that most of the estimated coefficients are statistically significant, which confirms the strong interconnection of the sustainability pillars. Although some of the coefficients indicate low elasticities with different signs, their high statistical significance implies a strongly integrated network of sustainability spillovers among the pillars. This result supports integrated sustainability, including the key role of spillovers in sustainable development. However, it presents heterogeneous spillover effects among the dimensions of sustainability, rejecting the perspective of weak sustainability which involves a homogeneous distribution of spillovers. It also defies the strong sustainability perspective for lower spillovers of the environmental pillar. This finding encourages policymakers to strengthen regional institutions to provide economic and trade incentives for enhanced cooperation via a peaceful relationship. This institutional approach is feasible by following the previous successful unions, like the European Union, or strengthening the established regional organizations such as the Organization of the Petroleum Exporting Countries (OPEC).