The crucial role of environmental assessment quality has been recognised by environmental and sustainable development goals in addressing climate change challenges. By focusing on the key identifier of environmental assessment, progress can be made towards overcoming climate change issues effectively. The current study considers environmental commitments under COP28 to study the role of economic complexity, greenfield investments, and energy innovation in environmental degradation in newly industrialised economies from 1995 to 2021. We employ novel panel estimations from CS-ARDL, CS-DL, AMG, and CCEMG to confirm that economic growth and greenfield investments degrade environmental quality. On the other hand, energy innovation and urbanisation improve environmental sustainability. Lastly, we confirm the EKC hypothesis for economic complexity as well. Given the reported empirical findings, the study suggests policymakers must focus on economic complexity to transform industrial sectors' economic potential. Furthermore, foreign investment projects must be linked with environmental goals to increase renewable energy capacity.
The gravest challenge for economic sustainability is the undetermined growth in the financial and economic risks of the nation, which need to be overcome with adequate measures without compromising economic growth. The uncertainty of economic factors produces fluctuations in the financial sector and makes them more vulnerable. However, the existing literature has not significantly focused on the economic and financial risk challenge for sustainable economic growth. Therefore, to fill the gap, an in-depth study is imperative to explore the association between these risks. To do so, this study incorporates both economic and financial risk to determine how risks are interconnected across time (frequency) and how they are linked by utilizing quarterly data from 1984-Q1 to 2020-Q4 and by applying both the "wavelet power spectrum (WPS)" and "wavelet coherence (WTC)" approaches, to examine the time-frequency dependency of each variable on the other. The findings of WTC revealed that the economic and financial risks have a positive dependency on each other in India at high, medium, and low frequencies. Likewise, the wavelet power spectrum outcomes reflect the high economic and financial risks vulnerability during 1991, 1992, and 1996. In addition, for the robustness check, the study employed both the "quantile regression (QR)" and "quantile-on-quantile regression (QQR)". Both the QQR and QR endorsed the positive association between FR and ER. Hence, our paper is the first research of its kind for the Indian economy, and it extends to the existing literature by examining the link between the two most significant indicators in terms of both time and frequency dependency. The findings in our paper offer excellent perspectives for investors and policymakers to assess prospects for investment and policy changes if necessary.
Given the significance of fostering sustainable climate conditions for long-term economic stability and financial resilience, this study probes the connection between climate-related policy ambiguity and its implications for currency valuation. In doing so, the current study investigates the interconnected effects of climate policy on economic policy uncertainty and geopolitical risk with the currency valuation in ASEAN countries. Employing wavelet coherence analysis and partial wavelet coherence analysis, the paper highlights the complex relationships among these factors and their implications for exchange rate fluctuations. Using data from 2000 to 2022, the findings reveal that climate policy uncertainty is an important driver of exchange rate movements, amplifying the impact of economic policy uncertainty and geopolitical risk. Furthermore, the study identifies a vicious cycle between climate policy uncertainty and exchange rates, potentially impacting the region's macroeconomic stability and long-term economic growth. The study presents several policy recommendations to address economic and climate policy uncertainties comprehensively based on the findings. These recommendations include establishing national frameworks for climate risk management, enhancing policy credibility and macroeconomic stability, and promoting regional integration to mitigate the influence of geopolitical risk on exchange rates.
This study explores the association between natural resources rent, industrial value addition, banking development, renewable energy consumption, total reserves and environmental quality in the dynamic context of BRICS nations from 1995 to 2019. BRICS economies are responsible for global greenhouse gas emissions and confront pressing environmental challenges, including biodiversity loss and pollution. For the dependent variable, the environmental quality, the study constructed a composite index using PCA for all environmental indicators where interdependencies among variables are prevalent. Besides this, the study incorporates two interaction terms to determine the indirect influence of natural resource rent and banking development on environmental quality through the mediating role of industrial value addition. By applying the CS-ARDL technique, the outcomes of the study reveal that natural resources rent, industrial value addition, and total reserves positively influence ENQ, indicating the adverse consequences of industrial sectors on environmental quality and continued environmental degradation due to resource-intensive industrial production, underscoring the urgency of sustainable resource management. In contrast, banking development and renewable energy consumption negatively influence ENQ, signifying the positive role of developed banking sectors in supporting eco-friendly projects and enhancing environmental quality. This study offers valuable insights for policy interventions to foster a more sustainable future.