Forthcoming and Online First Articles

International Journal of Sustainable Economy

International Journal of Sustainable Economy (IJSE)

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International Journal of Sustainable Economy (22 papers in press)

Regular Issues

  • Revisiting the impact of board characteristics on environmental, social, and governance (ESG) performance: lesson from european firms   Order a copy of this article
    by Tahani Tahmid, Farjana Nasrin, Paolo Saona, Md. Abul Kalam Azad 
    Abstract: Stakeholders’ concerns are no more limited to firms’ financial performance only. They are also concerned about the environmental, social, and governance (ESG) performance which represents the non-financial performance of a firm. However, there’s no consistent findings on how board characteristics can influence ESG performance. This study aims to revisit the impact of board characteristics on ESG performance of a firm in context of European firms. To test the study’s hypothesis, a linear model with fixed effect GLS (generalized least squares) is used on a 12-year panel data set from the year 2008 to 2020 of 180 listed firms categorized in 10 economic sectors operating in 22 countries. It has been found that among other board characteristics, women on board and the presence of CSR committee have a significant positive impact on ESG performance. However, board size, number of board meetings and board independence have negative or no significant impact.
    Keywords: ESG score; women on board; board characteristics; firm performance.
    DOI: 10.1504/IJSE.2024.10053959
  • Factors influencing intention to use hybrid electric vehicles in an oil-rich country: From vehicles market managers' perspective   Order a copy of this article
    by Akram Elahi Gol, Hossein Rahmany Youshanlouei, Milan Scasny 
    Abstract: The widespread uptake of electric vehicles is believed to be essential to deal with extreme air pollution. However, the current market penetration of electric vehicles in developing countries is negligible. This study aims to evaluate the preferences of managers in the automotive industry in Iran to use hybrid electric vehicles (HEVs). We use the goal-directed behaviour model extended by environmental concerns, hedonic and symbolic values to examine the role of social-psychological factors in the intention to use HEV. Amongst the analysed social-psychological factors, desire is the strongest one to predict intention to use HEVs, whilst hedonic and symbolic values alongside environmental concerns amplify the effect of desire. Our results suggest that Iranian people who attach more symbolic value to the new technology will also have a stronger desire to use HEV since ownership and usage of such cutting-edge technology are associated with prestige and a luxury lifestyle.
    Keywords: hybrid electric vehicles; HEVs; intention to use a low carbon technology; extended model of goal-directed behaviour; partial least square; PLS; automotive industry.
    DOI: 10.1504/IJSE.2024.10054427
  • Does ESG performance influence accounting- and market-based firm risk?   Order a copy of this article
    by Nadine Ladnar, Moritz Schätzlein, Ricardo Palomo, Alexander Zureck 
    Abstract: The relevance of corporate social responsibility (CSR) is increasing as an important factor in managers’ decision-making process. Future sustainable and continuing corporate financial performance (CFP) can only be achieved by considering stakeholders’ expectations and improving corporate social performance (CSP). Being a driver of a company’s prospective economic performance, CSR has become an element of risk analysis, which explains its growing relevance for authorities, banks, and investors. Therefore, this study examines the relationship between CSP and firm risk, hypothesising a risk-mitigating effect of CSP. Using corporates’ leverage and beta as indicators for firm-idiosyncratic and systematic risk, 250 firm-year observations between 2015 and 2019 of the German DAX 30 and MDAX are analysed within multiple linear regression. However, our findings do not provide clear results while indicating contrary effects on systematic and unsystematic risk instead, somehow reflecting the discrepancy of the current discourse on this topic.
    Keywords: ESG performance; environmental; social; governance; accounting-based firm risk; market-based firm risk; corporate social responsibility; CSR; sustainability; corporate social performance; CSP.
    DOI: 10.1504/IJSE.2024.10055416
  • Globalisation and manufacturing sector performance: the role of institutional quality in Nigeria   Order a copy of this article
    by Christian Agu, Ifeoma C. Mba, Jonathan Ogbuabor, Ezinne N. Odoemelam 
    Abstract: This study examined the relationship between globalisation and Nigeria’s manufacturing sector performance and how institutional quality is moderating this relationship during the period 2000-2020. The autoregressive distributed lag (ARDL) estimation technique was used. The findings indicate that globalisation has a direct positive impact on manufacturing sector performance in Nigeria, both in the short and long run. The institutional indicators predominantly showed a negative direct effect on manufacturing sector performance, both in the short and long run. Interestingly, the interaction between globalisation and the institutional indicators showed that the weak institutions prevalent in Nigeria are yet to dampen the positive effect of globalisation on the nation’s manufacturing sector. Furthermore, when the components of globalisation were used in the analysis, we found that while political and social globalisation enhance the performance of Nigeria’s manufacturing sector, economic globalisation deters it. The study gave some policy recommendations based on the findings.
    Keywords: globalisation; manufacturing sector; institutional quality; ARDL model; error correction model; Nigeria.
    DOI: 10.1504/IJSE.2024.10055881
  • Country-wide protests and financial stability   Order a copy of this article
    by Peterson Ozili 
    Abstract: This paper investigates the effect of country-wide protests on financial stability after controlling for inflation rate and the level of political stability. Country-wide protests may pressure a powerful government to listen and meet the demands of relatively less powerful groups, but country-wide protests can be destructive especially when such protests lead to the destruction of the business assets of the clients of financial institutions thereby making it difficult for them to meet their loan repayment and other obligations to financial institutions, and posing risk to the stability of the financial system. Financial stability and country-wide protests data were analysed for the UK. The empirical results show that bank non-performing loans are higher in country-wide protests years, implying that country-wide protests have a significant negative impact on financial stability through high non-performing loans in years where there are country-wide protests.
    Keywords: financial stability; UK; protest; demonstrations; non-performing loans; country-wide protests.
    DOI: 10.1504/IJSE.2025.10063273
  • Petroleum subsidies, clean energy transition, and decarbonization in oil-producing developing countries: what is the role of regulatory quality   Order a copy of this article
    by Abdul Rais Bin Abdul Latiff , Ibrahim Shittu, Siti Aisyah Baharudin 
    Abstract: Energy transition and decarbonisation are critical gateways to cutting carbon emissions, improving energy security, and achieving the United Nations Sustainable Development Goals. Researchers have paid enormous attention to understanding key drivers of clean energy transition and decarbonisation. However, they have overlooked the role of fossil fuel subsidies and regulatory quality in developing countries where fuel subsidies are prominent and institutional quality is weak. This study employs a Prais-Winsten regression to examine the impact of petroleum subsidies and regulatory quality on clean energy transition and decarbonisation in 25 developing countries between 2010 and 2020. The result revealed that petroleum subsidies hinder the shift to clean energies and encourage high carbon intensity. However, when these subsidies are accompanied by a strong regulatory quality, they promoted energy transition and decarbonisation. The study recommends practical pathways to reform fuel subsidies, swap subsidy saving into clean energies, and strengthen regulatory quality.
    Keywords: clean energy; energy transition; carbon emission; decarbonisation; petroleum subsidies; regulatory quality; developing countries; Prais-Winsten regression; SDGs; renewable energy.
    DOI: 10.1504/IJSE.2025.10057898
  • The relevance of renewable energy and green innovation in environmental sustainability: evidence from BRICS countries   Order a copy of this article
    by Lakshmana Padhan, Savita Bhat 
    Abstract: The study examines the significance of green innovation and renewable energy usage in reducing the carbon and ecological footprints in Brazil, Russia, India, China, and South Africa (BRICS) countries. It applies a series of econometric techniques and the Driscoll-Kraay standard errors regression approach to data collected between 1995 and 2018 based on the environmental Kuznets curve (EKC) hypothesis. Important macroeconomic control variables, such as industrialisation, urbanisation, financial development, trade openness, and natural resources, are also used to strengthen the model. Empirical results show that a 1% increase in green innovation reduces the carbon and ecological footprint by 0.229% and 0.226%, respectively. Further, increasing renewable energy consumption by 1% decreases the carbon and ecological footprints by 0.024% and 0.032%, respectively. Furthermore, the empirical findings support the EKC hypothesis. The study has important policy implications for governments and policymakers of emerging countries to invest more in green innovation and promote renewable energy.
    Keywords: green innovation; renewable energy; carbon footprint; ecological footprint; BRICS; Driscoll-Kraay standard errors; environmental Kuznets curve; EKC.
    DOI: 10.1504/IJSE.2025.10063275
  • The moderating role of board gender diversity in the relationship between corporate social responsibility and financial performance: evidence from France   Order a copy of this article
    by Karima Lajnef, Sahar Turki, Ellouz Siwar 
    Abstract: This study examines the influence of corporate social responsibility (CSR) and governance mechanisms on financial performance (FP) and investigates how board gender diversity (BGD) moderates the relationship between FP and CSR. The study analyses data from French companies listed on the SBF 120 index between 2008 and 2020. The findings suggest that CSR performance and BGD have a positive impact on FP. Additionally; the study reveals a moderation of BGD in the relationship between CSR and FP. The research adds to our theoretical and empirical understanding of how BGD relates to CSR and FP. The results highlight the importance of considering the potential impact of CSR policy, governance mechanisms, and BGD on FP. Therefore, stakeholders should be more aware of these factors to promote better financial outcomes.
    Keywords: corporate social responsibility (CSR); financial performance (FP); board gender diversity (BGD); governance mechanisms.
    DOI: 10.1504/IJSE.2025.10060464
  • Modelling Connectedness and Diversification Among Socially Responsible Investments in Asia
    by Neha Seth, Deepti Singh 
    Abstract: The study investigates the cointegration and volatility interdependence among sustainable indices of emerging Asian countries by employing Johansen’s cointegration, Granger causality test and dynamic conditional correlation (DCC) GARCH model. The analysis reveals no long-run relationship among these indices, and all the indices are significantly affected by their lagged values. The results also present that past shocks and volatility have a significant role in the present volatility of the sustainable indices. However, past volatility has more impact, which lasts with stronger persistence. The significant DCC terms infer that volatility spillover exists between sustainable Asian markets. The study also calculated optimal portfolio weights to provide better diversification opportunities to minimise the risks without hampering the potential returns. The study suggests that long-term investors may earn profit by adding these non-integrated sustainable indices to their portfolios, but they must diversify and hedge to safeguard from losses during economic and financial turmoil.
    Keywords: volatility spillover; Johansen’s cointegration; DCC-GARCH; sustainable stock index; optimal portfolio weights; emerging Asia.
    DOI: 10.1504/IJSE.2025.10060802
  • Exploring the linkage of international trade and environmental pollution in Asia   Order a copy of this article
    by Hoang Xuan Binh, Huong-Giang Pham, Nguyen Ha My, Lai Thi Huyen Trang, Nguyen Minh Tien 
    Abstract: This paper utilises data from Asian countries from 2000-2020 (with consideration of the COVID-19 period) to explore the linkage between international trade and environmental pollution in this region. After controlling for heteroscedasticity and autocorrelation, results of a fixed-effect regression show that the export turnover, import turnover, GDP per capita, electricity consumption, population growth rate, and net receipt ratio of FDI to GDP have significantly improved the level of CO2 emission in Asia. In addition, the paper also confirms the existence of the environmental Kuznets curve and that maintaining a surplus trade balance will help reduce CO2 emissions in a country. These empirical insights are particularly interesting to policymakers since they help build sensible policies about economic growth, energy conservation, and foreign direct investment to improve environmental quality.
    Keywords: international trade; environmental pollution; FEM; environmental Kuznets curve; EKC; pollution haven hypothesis.
    DOI: 10.1504/IJSE.2025.10061128
  • ESG Disclosure and Financial Success: A Comparative Dive into India's Manufacturing and Service Sectors   Order a copy of this article
    by Santi Gopal Maji, Prachi Lohia 
    Abstract: This paper examines the financial impact of environmental, social, and governance (ESG) disclosure in Indian manufacturing and service companies. The study employs a panel approach by utilising secondary data for a sample of 209 Indian-listed firms for 2020 and 2021. Empirical analysis conducted using suitable panel regression models reveals a significant positive financial impact of ESG disclosure in both sectors. However, manufacturing firms showcase improved market value while the service-sector firms experience higher accounting profits. This study highlights the role of a firm’s sector in explaining the consequent financial impact of ESG disclosure. It also emphasises the need for higher but material ESG disclosure and heightened investor awareness. Notably, this study represents the first comparative analysis of ESG’s effect on the financial performance of Indian manufacturing and service firms by considering indigenous ESG ratings from the Credit Rating Information Services of India Limited (CRISIL).
    Keywords: ESG; financial performance; manufacturing firms; service firms; CRISIL; India.
    DOI: 10.1504/IJSE.2025.10061702
  • Nexus between agricultural production and environmental degradation based on the theory of Environmental Kuznets Curve: a dynamic panel data analysis   Order a copy of this article
    by Swati Sinha Babu  
    Abstract: Expansion and proliferation of agricultural sector plays a vital role in achieving the sustainable development goals related to ending poverty and hunger. However, its impact on the environment is not free from contention. The aim of present paper is to explore the association between agricultural production and methane emissions (as measure of environmental degradation), across 87 countries classified into higher, middle and lower income groups, covering the period 1990-2020. We have employed dynamic system generalisation method of moment (GMM) to investigate the environmental Kuznets curve hypothesis and study the long-run causal effects among considered variables. Results indicated presence of N-shaped relation between agricultural production and methane emissions for all groups of countries. Findings also revealed that fertiliser consumption and livestock production had detrimental impact on environment. Lastly, policy recommendations have been made related to agricultural production techniques and livestock management strategies that might help development of sustainable agriculture.
    Keywords: agricultural production; methane emission; rice cultivation; livestocks; environmental Kuznets curve; EKC; dynamic GMM; sustainability.
    DOI: 10.1504/IJSE.2025.10062034
  • Effects on firm decisions considering the temporality of environmental policy   Order a copy of this article
    by FELIPE IGNACIO RIVERA PRADENAS, Katherin López, Jorge Zamorano 
    Abstract: This research analyses the effects of the temporality of environmental policy on firms’ location and abatement decisions. The policies are implemented by a regulator concerned about the welfare of society and environmental pollution. Therefore, it applies two instruments simultaneously: the tax on emissions, which seeks to internalise environmental costs, and the subsidy to clean technologies, which incentivises their adoption. In addition,the optimal levels of tax and subsidy that maximise social welfare are studied, considering the impact of the timing of the decision (ex-ante or ex-post). As for its resolution, a model of duopolistic firms competing in quantities in an emission-intensive sector is used. Among the main results, it is demonstrated that for both an ex-ante and ex-post implementation, social welfare is enhanced when environmental policies are in place. However, when the tax is applied ex-post and only one company chooses to remain in the local country, environmental damage increases.
    Keywords: environmental regulation; temporality of the decision; emission tax; subsidy R&D; location.
    DOI: 10.1504/IJSE.2025.10062267
  • Exploring the impact of economic growth, export diversification, trade openness and renewable energy consumption on ecological footprint - evidence from India   Order a copy of this article
    by Saima Shadab  
    Abstract: This study investigates the nexus between economic growth, export diversification, trade openness, renewable energy consumption, and ecological footprint for India, using annual data from 1971 to 2014. The Lee-Strazicich unit root test is employed to take into account breaks in the data. Furthermore, the autoregressive distributed bound test (ARDL) has been used to examine the short and long-run relationship between the variables. The estimates reveal that economic growth and export diversification increase ecological footprint in the long run but not in the short run. Besides, the coefficient of renewable energy consumption indicates that an increase in it leads to an increase in ecological footprint. In contrast, an insignificant relationship between trade openness and ecological footprint was obtained. Based on the findings, the study recommends that an appropriate mix of policies related to energy efficiency, sustainable development and international trade is required to control environmental degradation in India.
    Keywords: economic growth; export diversification; ED; trade openness; TO; renewable energy consumption; ecological footprint; EF; environmental degradation; sustainability; India.
    DOI: 10.1504/IJSE.2025.10062962
  • Commodity prices, institutional quality and export diversification: The case of Mongolia   Order a copy of this article
    by Gulguu Adiyabaatar, Liu Zhizhong 
    Abstract: Mongolia is a mineral commodity dependent and lower-middle-income country with a highly concentrated and volatile export basket. Interestingly, the potential determinants of the country’s export diversification have not explored empirically. This paper is intended to investigate the effects of commodity price shocks and institutional quality on export diversification in Mongolia. To do so, the ARDL bounds testing approach is employed for the empirical analysis, using a dataset covering the period of 1995-2019. The results of the analysis suggest that commodity price shocks measured by the aggregate index of commodity prices and a country-specific commodity terms of trade index influence Mongolia’s export diversification in both the long and short-run. For the Contract Intensive Money, a proxy for institutional quality, it supports export diversification in Mongolia in the short-run, but not in the long-run.
    Keywords: commodity dependency; export concentration; commodity price fluctuations; institutional quality; ARDL bounds testing approach; Mongolia.
    DOI: 10.1504/IJSE.2024.10063282
  • How do real and financial sectors in Africa respond to uncertainties from China, USA, and Europe   Order a copy of this article
    by Oliver E. Ogbonna, Jonathan E. Ogbuabor 
    Abstract: In spite of rising cross-border propagation of uncertainty shocks occasioned by the recent COVID-19 outbreak, existing studies barely addressed cross-border uncertainty effect on real and financial sectors, especially in Africa. Thus, this study has taken the initiative to investigate how the real and financial sectors in Africa are reacting to policy uncertainties from China, the USA and Europe. The study employed the generalised method of moment procedures for 41 African economies from 2010 to 2019. We find that rising uncertainty in China and Europe have significant adverse impacts on Africa’s real sector, while the impact of the USA uncertainty remains muted. Interestingly, we find that uncertainties from China and Europe have significant positive effects on Africa’s financial sector, suggesting that Africa is a safe-haven where investors transfer their investments away from risky environments witnessing high uncertainty. The study provides policy suggestions.
    Keywords: uncertainty; real sector; financial sector; two-step system GMM; Africa; China; the USA.
    DOI: 10.1504/IJSE.2025.10063600
  • Corruption and firm profitability in Vietnam   Order a copy of this article
    by Phuoc Vu Ha, Le Ngu Anh Ngo, Ngoc Phi Anh Doan, Bao Bao Vuong 
    Abstract: Governments in both developing and developed countries fight corruption since it can harm economic development. However, it has raised the question of why it still exists at a high level in emerging markets like Vietnam. The study aims to figure out the impact of corruption on firm profitability in Vietnam. With the data from surveys of World Bank, Vietnam Competitive Initiative and Vietnam Chamber of Commerce and Industry from 2005 to 2017, and by measuring corruption at country level and provincial level, the study provides the impact of corruption on firm profitability. We demonstrate that corruption has a negative effect on the profitability of firms. The results of this study give a better understanding about the characteristics of a featured emerging market like Vietnam. Lower levels of corruption, a better business environment quality may help developing countries in attracting more investors and hence, push up the economic growth.
    Keywords: corruption; firm profitability; emerging economy; Vietnam.
    DOI: 10.1504/IJSE.2024.10063271
  • The role of institutional quality in the nexus between agricultural expenditure and agricultural production in Nigeria   Order a copy of this article
    by Isiaka Akande Raifu, Ajibola Fatima Oladejo 
    Abstract: This study examines the moderating role of institutional quality in agricultural expenditure and agricultural output nexus in Nigeria during the period between 1984 and 2018. We compute the institutional quality index from five governance indicators which include government stability, democratic accountability, control of corruption, bureaucratic quality and law and order using principal component analysis. The main analysis is carried out using the autoregressive distributed lag method. The results show that agricultural expenditure positively and significantly impacts agricultural output in the long run. Institutional quality has a positive effect on agricultural output only in the short run. However, we do not find evidence that institutional quality moderates the agricultural expenditure-agricultural output nexus. While the government must ensure consistent support for agricultural production, strengthening the institutional apparatuses must be given priority to guarantee sustainable agricultural production.
    Keywords: agricultural expenditure; agricultural sector output; institutional quality; ARDL; Nigeria.
    DOI: 10.1504/IJSE.2024.10062411
  • Impact of national culture on insurers' risk-taking: evidence from selected CEE countries   Order a copy of this article
    by Tomislava Pavić Kramarić, Maja Pervan 
    Abstract: In conducting their activities, insurers are exposed to various risks. Since insurance firms play a significant role in supporting the economy, the analysis of factors influencing risk-taking is gaining importance, and national culture plays a significant role in this. Specifically, three national culture dimensions, including individualism, uncertainty avoidance and power distance, with a set of firm-, industry- and cross-country-oriented variables, are employed to see their potential influence on risk-taking, which is presented with a Z-score. Applying regression analysis on two sub-samples comprising of life and non-life insurance companies from selected Central and Eastern European countries (CEE) that operated in 2019, the authors find negative influence of uncertainty avoidance and power distance on risk-taking in both non-life and life insurance segments. Furthermore, GDP per capita growth also has negative influence on a Z-score whereas share of premium in GDP positively affects risk-taking. These findings relate to both insurance segments while the positive influence of concentration is found in the non-life segment only.
    Keywords: national culture dimensions; individualism; power distance; uncertainty avoidance; insurance firms; risk-taking; CEE countries.
    DOI: 10.1504/IJSE.2024.10063272
  • Environmental commitment for green finance and sustainable performance in commercial banks of ASEAN countries - whether stakeholder pressure has a moderating role   Order a copy of this article
    by Hien Vo Van, Malik Abu Afifa 
    Abstract: The purpose of this study is to investigate the relationships between environmental commitment, green finance implementation, and sustainable performance in ASEAN commercial banks. Simultaneously, stakeholder pressure is examined as a moderating factor on these relationships. The data from the cross-country survey of 101 senior managers were analysed using partial least squares-structural equation modelling (PLS-SEM). The study's findings demonstrated that environmental commitment positively influenced both green finance implementation and sustainable performance. Furthermore, green finance implementation had a positive and significant impact on sustainable performance. It was also intriguing to see that none of these relationships were moderated by stakeholder pressure. These findings are essential evidence for ASEAN governments, central banks, and commercial banks in establishing the motivation for green finance and sustainable performance. Finally, the study proposes recommendations for strengthening the application of green financing in ASEAN commercial banks.
    Keywords: ASEAN; commercial bank; environmental commitment; green finance; stakeholder pressure; sustainable performance; SDGs; legitimacy theory; resource-based view; RBV; stakeholder theory.
    DOI: 10.1504/IJSE.2024.10052880
  • Investigating the key factors of the development of the sustainable port in Vietnam   Order a copy of this article
    by Manh-Ha Dang, Thi Thuy Hong Nguyen 
    Abstract: Today, sustainable ports play a significant role in putting into practice a sustainable business strategy that comprehends the ecological and commercial mechanics of environment incentive programs. This paper's goal is to identify the major factors affecting the implementation of sustainable ports. In this study, 215 managers from 21 container ports in Vietnam participated as the sample. The data were analysed using principal component analysis (PCA), confirmatory factor analysis (CFA), and structural equation modelling (SEM). The findings demonstrated that the availability of technical advancement, environmental regulations, economic incentives provided by governments, and the collaboration of parties concerned are all important factors in the development of sustainable ports in developing countries. The implication and discussion is presented in depth in the article.
    Keywords: sustainable port; drivers; regulations; technical advancement; sustainability; Vietnam.
    DOI: 10.1504/IJSE.2024.10056004
  • The hidden costs of deposit insurance: evidence from India's cross-subsidisation model
    by Varda Sardana, Shubham Singhania, Amiya Kumar Mohapatra, Deepankar Chakrabarti 
    Abstract: This paper highlights the issue of cross-subsidisation prevalent under the explicit system of deposit insurance adopted by countries. Through a case study of India, this paper underlines how the provision of deposit insurance coverage to heterogeneous categories of banks, under the same insurer, can lead to subsidies flowing from the higher efficiency bank groups to the lower efficiency ones. The study compares the costs and benefits of deposit insurance for the two bank groups in India, using regression analysis over 25 years, from 1996-1997 to 2020-2021. The results support the presence of cross-subsidisation between commercial and cooperative bank groups. Bank regulatory modifications, such as the adoption of risk-based premium, determination of premium based on actual insured deposits, and setting up separate deposit insurers for heterogeneous bank groups can be considered for minimising the negative implications of such unwarranted subsidies, thereby ensuring banking stability as well as sustainability.
    Keywords: deposit insurance; cross subsidisation; Indian banking; commercial and cooperative banks; bank sustainability; banking regulation.
    DOI: 10.1504/IJSE.2024.10063274