Examining the Interplay of Climate Change, Cultural Dynamics, and Sustainable Development: A Global Perspective

Abstract

This study undertakes a comprehensive multi-country analysis to investigate the intricate relationships among climate change, cultural dynamics, and sustainable development. Leveraging a robust, unbalanced panel dataset that encompasses one hundred and eight countries or regions over nearly four decades (1981–2019), this study employs fixed-effects estimation techniques to mitigate the impact of time-invariant heterogeneity across observational units. Structural equation modeling (SEM) is also employed as an advanced analytical tool to explore complex causal pathways and latent variables. Conducted in Stata, this multifaceted approach allows us to delve into the causal interconnections between climate change indicators, various cultural attributes, and indices of sustainable development. The findings reveal a negative influence of climate change on cultural background formation, which in turn impacts sustainable development. On the other hand, it is found that cultural background contributes positively to sustainable development. This suggests integrating cultural considerations into climate change adaptation, mitigation strategies, and sustainable development interventions. These strategies account for diverse societal values and behaviors, facilitating more effective climate change mitigation and adaptation. This study contributes to the growing research on the interplay between climate change and sustainable development by emphasizing a culturally informed policy framework. Its findings stand to inform national and international policymaking and enrich the discourse surrounding the creative economy’s role in promoting sustainable development in the face of climate change.