Sustainable Development and Financial Resilience: Linking Greenhouse Gas Emissions, Risk, and Green Growth with Innovation, Inclusion, Renewables, and Infrastructure

Abstract

Abstract Sustainable development has gained significant attention recently as societies face mounting environmental, social, and economic challenges. This paper undertakes a comprehensive examination of sustainable development, aiming to understand its multifaceted dimensions and propose a roadmap for its achievement. The study begins by providing a theoretical foundation for sustainable development, exploring its origins, principles, and frameworks. It investigates the interconnectedness of environmental conservation, social equity, and economic prosperity, emphasizing the need for an integrated approach to address complex issues. The study follows a research model, dependent variable (greenhouse gas emissions). However, the independent variables include financial risk, green growth, technology innovation, renewable energy, financial inclusion, and soft infrastructure. The methodology followed for this study is a quantitative approach with secondary data ranging from 2004 to 2019. The data is collected from the World Development Indicators and the Organization for Economic Cooperation and Development database. For the green growth, the index is made with the entropy-weighted method to represent the variable indicators better. The diagnostic tests were used to solve the issue of the panel data set, which includes correlation, VIF, cross-sectional dependency, stationarity tests, and cointegration. The diagnostic test results suggested that the appropriate method to follow for this panel is a Fully Modified ordinary least square. The results suggest greenhouse gases, financial inclusion, and soft infrastructure have significant positive and green growth; renewable energy and technology innovation have a significant negative relationship with financial risk; long run variance is 55%. The results suggest that the government to give incentives to the institutions in the field of alternative energy to institutions should shift toward renewable energy and contribute to improving environmental quality. Government can develop policies and regulate the fund toward sustainable development, which can be helpful in environmental sustainability. The results suggest that the government to give incentives to the institutions in the field of alternative energy to institutions should shift toward renewable energy and contribute to improving environmental quality. Government can develop policies and regulate the fund toward sustainable development, which can be helpful in environmental sustainability.