The purpose of this research paper is to investigate and identify the factors which can support the development of one characteristic of smart cities, namely, the smart environment. More specifically, the main goal is to measure the extent to which air pollution may be reduced, taking as determinants several circular economy, fiscal, and environmental factors. The Ordinary Least Squares, the Fixed Effects, and Random Effects regression models using balanced panel data were employed, over the 2011–2019 period, for 28 European states. After rigorously studying the literature, 11 indicators with a predictable impact on the exposure to air pollution were kept. According to current analysis, the most effective methods of reducing air pollution are the use of renewable energy, the investments in educating the population to reduce pollution, the proper implementation of the circular economy, and the adoption of the most suitable policies by the European Union governments. Particular attention needs to be paid to factors such as carbon dioxide-generating activities, which are significantly increasing the air pollution. Another strong value is that of providing information on the assessment of ambient air quality, and on the promotion of appropriate policies to achieve two major objectives: well-being, and sustainable cities.

The automotive industry is set to face a series of fundamental changes in the following years. Along with the transition to electric vehicles or production of autonomous cars, companies are also expected to better address sustainability issues, usually divided into environmental, social and governance (ESG) aspects. The present paper aims to explore the relationship between non-financial sustainability, measured by ESG scores, and firm value in the automotive industry, where empirical evidence is scarce. A structural equation modelling (SEM) approach has been taken on a novel dataset of 131 listed companies worldwide across 6 years. Our results indicate a mixed influence of the E, S, G scores on firm value in the analyzed period, with some inconclusive effects, especially from the social score. The findings are beneficial for investors, fund managers and automotive companies’ executives. Further research directions are also provided.

As we mark one year since the start of the Russia-Ukraine war, countries and companies alike continue to adapt to this unprecedented disruption in the global economy and the subsequent uncertainty. One aspect that has not been thoroughly addressed from this conflict is its effect on companies’ ESG ratings and how the decision to remain or withdraw from Russia influences these ratings. To study this, a panel regression methodology on ESG data was applied on a significant number of companies before and after the start of the conflict. According to the results obtained, it would seem that insofar neither the overall ESG scores, nor the Social Scores are influenced by companies’ decisions to leave or to stay in Russia after 24-th of February 2022. We consider that these are not final outcomes and it will require further investigations and methodology improvements. The paper provides insights for ESG ratings providers, regulators and asset managers on the effects of companies’ decision to withdraw from/remain in an invading country on ESG ratings.

The purpose of this paper is to analyse to what extent accession to the European Union affected the quality of institutions in Romania and Bulgaria. In order to measure these effects, indicators of perceived corruption have been built based on data from the Life in Transition surveys I, II, III, conducted by the European Bank of Reconstruction and Development. Under the specifications of a difference-in-differences methodology, evidence of a reduction in small acts of corruption has been discovered for both countries, with larger effects in Bulgaria. In regards to high level corruption, Romania proved to be successful in tackling this dimension nine years after the accession, while for Bulgaria the evidence suggests an unfavourable deterioration over time.

Environmental degradation and its impact on sustainable development have sparked the interest of national and international policymakers, specialists, and academia. This paper aims to demonstrate the empirical nexus between environmental performance, measured by carbon dioxide emissions, and education levels together with institutional quality in a society. To achieve this goal, the regression model includes the main variables that reflect the quality of governance (government effectiveness, regulatory quality, control of corruption, and rule of law), together with education dimension, gross domestic product, renewable energy consumption, fossil fuel energy consumption, and industry. The data were collected for the 1995–2020 period, for a set of 43 countries, consisting of all European Union (EU) members and The Group of Twenty (G20) states. The research uses three estimations methods, respectively Pooled ordinary least squares (Pooled OLS), Fixed effects model (FEM) and Random effects model (REM), together with a two-step dynamic GMM model, to address the endogeneity issue as well. The main results show that all the independent variables reflecting institutional quality from a technical point of view, included in the model when considering the PCSE estimation, have a direct and positive link to CO2 emissions’ level, with control of corruption variable being the only one to influence in a positive manner CO2 emissions at a significant level. Education level, together with economic growth, fossil fuel energy consumption and industry, had a negative significant impact as well upon environmental performance, an increase of one unit in these variables contributing to increased carbon dioxide levels in the EU and G20 sample when considering both the panel corrected model as well as the GMM scenario. Renewable energy is the only independent variable to manifest a significant positive and direct link with environmental performance, drawing attention to the need of adapting the primary sources of energy, in line with international organizations’ sustainable development policy recommendations. Also, there is a need to improve citizens’ perceptions of public services and institutions by building confidence in government’s ability to formulate and implement regulations.