Determinants of green growth in developed and developing countries

Considering the need for environmental sustainability while ensuring economic growth and development by 2030, this study uses data on 123 developed and developing countries to examine factors that influence green growth. The empirical results show that economic development positively influences green growth. However, trade openness is detrimental to green growth. Regarding energy-related factors, we find energy consumption negatively affecting green growth, but renewable energy consumption significantly improves green growth. In further analysis, we find that the influence of these factors differs between developed and developing countries. The result implies that countries at a different development level will require different strategies in achieving the Sustainable Development Goals in 2030. The results are robust to alternative identification strategies such as the System Generalised Method of Movement, which accounts for potential endogeneity.

Automated summary

Economic development has a positive impact on green growth, while trade openness has a negative impact. Energy consumption has a negative effect on green growth, but renewable energy consumption significantly improves it. Different strategies will be needed for countries at different development levels to achieve the Sustainable Development Goals by 2030.