Can increasing environmental policy stringency promote financial development? Evidence from developed economies

Hassan, Mahmoud; Kouzez, Marc; Lee, Ji Yong; Msolli, Badreddine; Rjiba, Hatem

doi:10.1007/s10479-023-05190-z

Cited by 4 publications

(2 citation statements)

References 96 publications

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“…Applying the notion of coercive institutional regulation, it is plausible that it forces firms to acquire external knowledge to comply with sustainability regulations. Hassan et al (2023) indicated that environmental regulation formulated by the government to mitigate environmental problems leads to green financial development. Particularly, different governmental regulations drive organizations toward knowledge sharing and adaptation (Zhang et al, 2020).…”

Section: Review Of Literature and Conceptual Developmentmentioning

confidence: 99%

Sustainability-oriented corporate strategy: green image and innovation capabilities

Zameer,

Yasmeen,

Wang

et al. 2024

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PurposeUnderstanding the role of corporate strategies in sustainability has become a hot topic for scholarly research. Meanwhile, firms strive to innovate and shape their positive image in the contemporary business arena. Past research has ignored investigating whether and how sustainability-oriented corporate strategies could drive innovation and firm image among external stakeholders. To address the said research gap, this paper examines the path through which sustainability-oriented corporate strategy and environmental regulation improve green corporate image and green innovation capabilities (i.e. green process and product innovation).Design/methodology/approachThis study adopted a quantitative survey-based method. The online survey was adopted to collect data from employees working at the managerial level in the equipment manufacturing sector. The data collected from 343 managers that was complete in all aspects was used for empirical analysis using structural equation modeling. Direct and indirect relations were evaluated.FindingsThe findings reveal that sustainability-oriented corporate strategy and environmental regulation drive green innovation and green corporate image. Findings further show that external knowledge adoption underpins these effects of sustainability-oriented corporate strategy and environmental regulation.Originality/valueThe study delivers theoretical and practical understandings of the importance of sustainability-oriented corporate strategies to green corporate image and green innovation capabilities.

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Section: Review Of Literature and Conceptual Developmentmentioning

confidence: 99%

Sustainability-oriented corporate strategy: green image and innovation capabilities

Zameer,

Yasmeen,

Wang

et al. 2024

View full text Add to dashboard Cite

show abstract

“…Also, their findings confirmed that there is bidirectional causality between these variables. In addition, Hassan et al (2023) studied the effects of the EPS index on the financial development of 27 OECD countries covering 1990-2015, recently. They found that the EPS index had a positive and statistically significant impact on the financial development indicators.…”

Section: The Relationship Between the Eps Index And Fdi Inflowsmentioning

confidence: 99%

Do tight environmental regulations cause economic contraction? Panel evidence from the European countries

Gorus

2023

Natural Resources Forum

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Developed countries have long tried to increase their environmental standards to mitigate the negative effects of economic activities. For this purpose, they impose environmental taxes, energy taxes, and emission limits. In the last decade, a new measurement technique for environmental policy was introduced: the Environmental Policy Stringency Index (EPS index). This index takes values from 0.00 to 6.00, and higher values refer to more stringent environmental policies, whereas lower values suggest lax policies. This study aims to explore the impact of the EPS index on economic activities at the aggregate and sectoral levels for 20 European countries covering the period 1995–2020. For this purpose, this study utilizes the dynamic panel data approach, the two‐step system generalized method of moments (GMM) estimation method. The empirical findings show that an increase in the EPS index causes a decline in economic growth at the aggregate level. At the sectoral level, it was found that the industry sector is negatively affected by increases in environmental standards. In addition to the system GMM results, this study employs the Dumitrescu–Hurlin panel non‐causality test to detect causal linkages between variables. The empirical findings show that the EPS index Granger causes economic activity in almost all sectors. The empirical results indicate that environmental regulations should be carefully designed to prevent economic contraction. Policymakers need to develop policies to decrease dependency on fossil fuels in industrial production. Thus, they can subsidize firms to invest in productive and innovative areas.

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Juxtaposing the environmental consequences of different environment-related technological innovations: The significance of establishing good democratic governance

et al. 2023

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Can increasing environmental policy stringency promote financial development? Evidence from developed economies

Cited by 4 publications

References 96 publications

Sustainability-oriented corporate strategy: green image and innovation capabilities

Sustainability-oriented corporate strategy: green image and innovation capabilities

Do tight environmental regulations cause economic contraction? Panel evidence from the European countries

Juxtaposing the environmental consequences of different environment-related technological innovations: The significance of establishing good democratic governance

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