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New measurement of sovereign ESG index

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  • Jiang, Ping-Chuan
  • Feng, Gen-Fu
  • Yang, Hao-Chang

Abstract

In view of the progressive development of the ESG concept, this paper measures the sovereign ESG index of 171 countries worldwide over the period 1990–2020 by employing the entropy weight method based on relevant indicators from the World Bank's Sovereign ESG Database. The graphical analysis of the index leads to the preliminary conclusion that countries with higher economic levels tend to start earlier and focus more on ESG development, while low-income countries invest less in sustainable development and may have focused their development on the economy in the early stages of globalization. This research aims to contribute a set of instrumental data reflecting the current status and evolution of global sovereign ESG development, and to provide an important reference for studies related to sovereign ESG development and indicator system design.

Suggested Citation

  • Jiang, Ping-Chuan & Feng, Gen-Fu & Yang, Hao-Chang, 2022. "New measurement of sovereign ESG index," Innovation and Green Development, Elsevier, vol. 1(2).
    • Handle: RePEc:eee:ingrde:v:1:y:2022:i:2:s2949753122000091
    DOI: 10.1016/j.igd.2022.100009
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    References listed on IDEAS

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    4. Gillan, Stuart L. & Koch, Andrew & Starks, Laura T., 2021. "Firms and social responsibility: A review of ESG and CSR research in corporate finance," Journal of Corporate Finance, Elsevier, vol. 66(C).
    5. Weale, Albert & Pridham, Geoffrey & Cini, Michelle & Konstadakopulos, Dimitrios & Porter, Martin & Flynn, Brendan, 2002. "Environmental Governance in Europe: An Ever Closer Ecological Union?," OUP Catalogue, Oxford University Press, number 9780199257478.
    6. Yuxin Zhu & Dazuo Tian & Feng Yan, 2020. "Effectiveness of Entropy Weight Method in Decision-Making," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-5, March.
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    Cited by:

    1. Sui, Bo & Yao, Liuyang, 2023. "The impact of digital transformation on corporate financialization: The mediating effect of green technology innovation," Innovation and Green Development, Elsevier, vol. 2(1).

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    More about this item

    Keywords

    Sustainable development; Sovereign ESG; Entropy weight method; Kernel density estimation;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • F01 - International Economics - - General - - - Global Outlook

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