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How can entrepreneurship and educational capital lead to environmental sustainability?

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  • Omri, Anis
  • Afi, Hatem

Abstract

This inquiry extends previous literature by assessing the role of educational capital (educational levels and government spending on education) in modulating the negative impact of different types of entrepreneurship on environmental quality for 32 developing economies. Four different types of entrepreneurship are included in the analysis, namely: opportunity entrepreneurship, necessity entrepreneurship, formal entrepreneurship, and informal entrepreneurship. The followings are the main findings provided by the system Generalized Method of Moments (Sys-GMM): (i) all the four types of entrepreneurship increase carbon emissions; (ii) necessity and informal entrepreneurship have the highest contribution to carbon emissions compared to opportunity and formal entrepreneurship; (iii) the conditional impact of educational capital, particularly tertiary education and government expenditure on education, reduces carbon emissions in the models pertaining to opportunity and necessity entrepreneurship; however, only tertiary education reduces carbon emissions in the models pertaining to formal and informal entrepreneurship; (iv) the net impacts on carbon emissions from the complementarity between educational capital and both opportunity and necessity entrepreneurship are negative and significant only for the tertiary education and government expenditure in education, indicating that these later can be used to modulate the negative impact of opportunity and necessity entrepreneurship on environmental quality; (v) the net impacts on carbon emissions from the complementarity between educational capital and both formal and informal entrepreneurship is negative and significant only for the tertiary education, meaning that this later can be used to modulate the negative impact of formal and informal entrepreneurship on environmental quality. Contributions to the theoretical and empirical literature, implications to policymakers and practitioners, and future research directions are also discussed.

Suggested Citation

  • Omri, Anis & Afi, Hatem, 2020. "How can entrepreneurship and educational capital lead to environmental sustainability?," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 1-10.
    • Handle: RePEc:eee:streco:v:54:y:2020:i:c:p:1-10
    DOI: 10.1016/j.strueco.2020.03.007
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    2. Jabeur, Sami Ben & Ballouk, Houssein & Mefteh-Wali, Salma & Omri, Anis, 2022. "Forecasting the macrolevel determinants of entrepreneurial opportunities using artificial intelligence models," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    3. Ana Venâncio & Inês Pinto, 2020. "Type of Entrepreneurial Activity and Sustainable Development Goals," Sustainability, MDPI, vol. 12(22), pages 1-25, November.
    4. Cheng, Shulei & Wang, Ping & Chen, Boyang & Fan, Wei, 2022. "Decoupling and decomposition analysis of CO2 emissions from government spending in China," Energy, Elsevier, vol. 243(C).
    5. Qing Yin & Delu Wang & Yadong Wang, 2023. "Serial Mediation Model Linking Returnee Entrepreneurship Education and Green Returnee Entrepreneurial Behavior: An Analysis of Environmental Improvement," Sustainability, MDPI, vol. 15(19), pages 1-15, September.
    6. Udemba, Edmund Ntom & Philip, Lucy Davou & Emir, Firat, 2022. "Performance and sustainability of environment under entrepreneurial activities, urbanization and renewable energy policies: A dual study of Malaysian climate goal," Renewable Energy, Elsevier, vol. 189(C), pages 734-743.
    7. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: A Bayesian analysis of multi-level spatial correlation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 156-165.
    8. Jinbo Wang & Maosheng Ran & Yi Li & Heng Zhan, 2022. "Is venture capital a catalyst for innovative entrepreneurship in China? Empirical analysis based on the PSM‐DID method," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1039-1058, June.
    9. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: a Bayesian analysis of multi-level spatial correlation," LSE Research Online Documents on Economics 114290, London School of Economics and Political Science, LSE Library.
    10. Udemba, Edmund Ntom & Emir, Firat & Philip, Lucy Davou, 2022. "Mitigating poor environmental quality with technology, renewable and entrepreneur policies: A symmetric and asymmetric approaches," Renewable Energy, Elsevier, vol. 189(C), pages 997-1006.
    11. Nicolae Stef & Sami Ben Jabeur, 2020. "Climate Change Legislations and Environmental Degradation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 839-868, December.
    12. Xiaohua Li & Lina Ma & Salahuddin Khan & Xin Zhao, 2023. "The Role of Education and Green Innovation in Green Transition: Advancing the United Nations Agenda on Sustainable Development," Sustainability, MDPI, vol. 15(16), pages 1-20, August.

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