Balancing act: Trade‐offs and synergies within Sustainable Development Goals 1st, 10th, and 13th—Poverty, inequality, and climate actions

Abstract

While the existing body of research has exhaustively examined several Sustainable Development Goals (SDGs), it fails to adequately reflect the significance of trade‐offs and synergies among the SDGs. This study aims to address the existing gap by doing a complete analysis of the SDGs in developing nations, specifically examining the trade‐off relationship between SDG‐1, pertaining to poverty reduction; SDG‐10, concerning reducing inequality; and SDG‐13, focusing on environmental activities. The analysis encompasses a sample of 40 developing countries. To accomplish this, a Generalized Method of Movement (GMM)‐style Panel‐Vector Autoregressive (PVAR) model is utilized, with carbon emissions (CO2Em) serving as a measure for environmental volatility. The findings confirm the existence of the Environmental Phillips Curve (EPC), which signifies a trade‐off between SDG‐1 (poverty), SDG‐10th (inequality), and SDG‐13th (CO2Em). Additionally, the processes of industrialization, trade, and population expansion have adverse effects on the attainment of SDG‐13. Conversely, industrialization and trade can contribute positively towards SDG‐1. A conventional sys‐GMM model is utilized for the robustness check, supporting the main findings acquired from the GMM‐style PVAR model. Lastly, based on empirical findings, significant policy implications are suggested for the achievement of SGDs.