Governance-conditioned financial and energy transition pathways to ecological sustainability

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Offers panel econometric evidence on governance-conditioned effects of financial development and energy transition on ecological sustainability in developing countries.

🏢実務担当者:Corporate sustainability teams should consider local governance quality when investing in energy transition projects in emerging markets.

🏛政策担当者:Policymakers should address governance quality to enhance the effectiveness of climate finance and renewable energy policies in developing countries.

This research aims to explore the dynamic nexus among governance quality, forms of financial development, energy transition, and ecological sustainability in emerging economies between 2005 and 2023. Based on an unequal sample of 95 developing countries, the analysis combines institutional theory, public choice perspectives, and the Environmental Kuznets Curve framework to examine how institutions and finance jointly determine environmental performance. Ecological sustainability is predominantly quantified by ecological footprint, with CO2 emissions and energy intensity serving as robustness checks. The study accounts for cross-sectional dependence, slope heterogeneity, endogeneity, and nonlinear dynamics using well-established second-generation panel data techniques, including Cross-Sectionally Augmented Autoregressive Distributed Lag, Common Correlated Effects Error Correction Model, Common Correlated Effects Mean Group, Augmented Mean Group, and System Generalized Method of Moments, quantile regression, threshold models, and Dumitrescu-Hurlin causality tests. The findings suggest a steady, long-run correlation among governance, finance, energy transition, and ecological sustainability. The quality of governance can greatly boost environmental performance and amplify the ecological scorecard of financial development and the adoption of renewable energy. The enhancement of financial deepening yields the greatest sustainability gains when institutions are well designed, which supports the existence of governance thresholds. Energy transition proves to be the most consistent source of environmental enhancement among estimators, as well as subsamples. Empirical tests on causality reveal that governance and finance are more likely to precede energy transition and improvements in sustainability, with weak feedback effects. In general, the results show that the effectiveness of institutional strength in finance in the context of the environment and sustainable energy transition in the new economy depends on the activities of emerging economies.

• openalex https://doi.org/10.1186/s12302-026-01407-7first seen 2026-06-02 04:37:59 · last seen 2026-06-03 04:44:51