IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i6p2421-d334540.html
   My bibliography  Save this article

Impact of Investment Sources for Sustainability on a Country’s Sustainable Development: Evidence from the EU

Author

Listed:
  • Indre Lapinskaite

    (Faculty of Business Management, Institute of Dynamic Management, Vilnius Gediminas Technical University; Vilnius LT-10223, Lithuania)

  • Viktorija Skvarciany

    (Faculty of Business Management, Institute of Dynamic Management, Vilnius Gediminas Technical University; Vilnius LT-10223, Lithuania)

  • Patrikas Janulevicius

    (Energobaltas, UAB, Vilnius LT-08419, Lithuania)

Abstract

All countries face several issues while running the process of sustainable development—the absence of a uniform means of sourcing investment for sustainable development and the lack of a unified index for the evaluation of sustainable development. No doubt, ensuring sustainable development requires constant financial investments. Hence, it is essential to examine the investment sources for sustainable development at the country level and to comprehend if the current financial investment has a direct impact on the results of a country’s sustainable development. The article aims at identifying the financing sources for sustainable development for each of the European Union (EU) countries and assessing their impact on each of the EU countries’ sustainable development, which is expressed as the Integrated Sustainable Development Index (ISDI). After the detailed analysis of investment sources for the sustainability of the EU countries, two sources of investment, assignation of budget and the EU structural funds, were selected, and ISDI calculation was applied for twenty-five of the EU member states for the period 2003–2017. Correlation analysis (using SPSS software) helped to identify the strength of the connection and to select countries for the Johansen Cointegration Test (using Eviews software) in order to determine how variables interact. The results show that the combination of the assignation of budget and the EU structural funds has a positive impact on the coherence of five (Czech Republic, Denmark, Spain, Slovenia, and Austria) out of twenty-four countries.

Suggested Citation

  • Indre Lapinskaite & Viktorija Skvarciany & Patrikas Janulevicius, 2020. "Impact of Investment Sources for Sustainability on a Country’s Sustainable Development: Evidence from the EU," Sustainability, MDPI, vol. 12(6), pages 1-24, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2421-:d:334540
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/6/2421/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/6/2421/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Quentin Grafton, R. & Jotzo, Frank & Wasson, Merrilyn, 2004. "Financing sustainable development: Country Undertakings and Rights for Environmental Sustainability CURES," Ecological Economics, Elsevier, vol. 51(1-2), pages 65-78, November.
    2. Monasterolo, Irene & de Angelis, Luca, 2020. "Blind to carbon risk? An analysis of stock market reaction to the Paris Agreement," Ecological Economics, Elsevier, vol. 170(C).
    3. Oksana Lentjushenkova & Vita Zarina & Jelena Titko, 2019. "Disclosure of intellectual capital in financial reports: case of Latvia," Oeconomia Copernicana, Institute of Economic Research, vol. 10(2), pages 341-357, June.
    4. Jomo Kwame Sundaram & Anis Chowdhury & Krishnan Sharma & Daniel Platz, 2016. "Public-Private Partnerships and the 2030 Agenda for Sustainable Development: Fit for purpose?," Working Papers 148, United Nations, Department of Economics and Social Affairs.
    5. Ian Robertson, 2020. "Principles of sustainable finance," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 10(3), pages 311-313, July.
    6. Clark, Robyn & Reed, James & Sunderland, Terry, 2018. "Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance," Land Use Policy, Elsevier, vol. 71(C), pages 335-346.
    7. Klevas, Valentinas & Streimikiene, Dalia & Grikstaite, Ramute, 2007. "Sustainable energy in Baltic States," Energy Policy, Elsevier, vol. 35(1), pages 76-90, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna Brzozowska & Dagmara Bubel, 2020. "Estimation of the Imperative of Rural Area Development on Panel Data in the Process of Managing Agricultural Holdings in Poland," Agriculture, MDPI, vol. 10(7), pages 1-20, July.
    2. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.
    3. Håvard Hegre & Kristina Petrova & Nina von Uexkull, 2020. "Synergies and Trade-Offs in Reaching the Sustainable Development Goals," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    4. Alikhan Medeu & Maulken Askarova & Aknur Zhakupova & Ulmira Bauyrzhan & Hermann Klug, 2025. "Sustainable Regional Development: A Challenge Between Socio-Economic Development and Sustainable Environmental Management," Sustainability, MDPI, vol. 17(13), pages 1-16, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benjamin S. Thompson, 2023. "Impact investing in biodiversity conservation with bonds: An analysis of financial and environmental risk," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 353-368, January.
    2. Bingler, Julia Anna & Kraus, Mathias & Leippold, Markus & Webersinke, Nicolas, 2024. "How cheap talk in climate disclosures relates to climate initiatives, corporate emissions, and reputation risk," Journal of Banking & Finance, Elsevier, vol. 164(C).
    3. Baležentis, Alvydas & Baležentis, Tomas & Streimikiene, Dalia, 2011. "The energy intensity in Lithuania during 1995–2009: A LMDI approach," Energy Policy, Elsevier, vol. 39(11), pages 7322-7334.
    4. Buchetti, Bruno & Miquel-Flores, Ixart & Perdichizzi, Salvatore & Reghezza, Alessio & Lin, Luca X., 2024. "Loan guarantee and portfolio greening: evidence from European credit registers," Working Paper Series 2916, European Central Bank.
    5. López-Ercilla, I. & Rocha-Tejeda, L. & Fulton, S. & Espinosa-Romero, M.J. & Torre, J. & Fernández Rivera-Melo, F.J., 2024. "Who pays for sustainability in the small-scale fisheries in the global south?," Ecological Economics, Elsevier, vol. 226(C).
    6. Luca Tacconi & Frank Jotzo & R. Grafton, 2008. "Local causes, regional co-operation and global financing for environmental problems: the case of Southeast Asian Haze pollution," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(1), pages 1-16, March.
    7. Satish Kumar & Dipasha Sharma & Sandeep Rao & Weng Marc Lim & Sachin Kumar Mangla, 2025. "Past, present, and future of sustainable finance: insights from big data analytics through machine learning of scholarly research," Annals of Operations Research, Springer, vol. 345(2), pages 1061-1104, February.
    8. Susan, Enyang Besong & Pan, Yanchun, 2024. "Trust as a determinant of green finance through information sharing and technological penetration: Integrating the moderation of governance for sustainable growth," Technology in Society, Elsevier, vol. 77(C).
    9. Sadik-Zada, Elkhan Richard & Gatto, Andrea, 2023. "Civic engagement and energy transition in the Nordic-Baltic Sea Region: Parametric and nonparametric inquiries," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    10. Louisa Chen & Koji Takahashi, 2024. "The road to net zero: a fund flow investigation," BIS Working Papers 1220, Bank for International Settlements.
    11. María José Romero, 2016. "Development Finance Takes ‘Private Turn’: Implications and Challenges Ahead," Development, Palgrave Macmillan;Society for International Deveopment, vol. 59(1), pages 59-65, June.
    12. Cross, Sam & Hast, Aira & Kuhi-Thalfeldt, Reeli & Syri, Sanna & Streimikiene, Dalia & Denina, Arta, 2015. "Progress in renewable electricity in Northern Europe towards EU 2020 targets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1768-1780.
    13. Curcio, Domenico & Gianfrancesco, Igor & Vioto, Davide, 2023. "Climate change and financial systemic risk: Evidence from US banks and insurers," Journal of Financial Stability, Elsevier, vol. 66(C).
    14. Manyama, Mkama Thomas & Hepelwa, Aloyce Shaban & Nahonyo, Cuthbert Leonard, 2021. "GIS Based Environmental Cost−Benefit Analysis of Built Environment at Dar es Salaam Coastline Metropolitan," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    15. Monica Billio & Michele Costola & Iva Hristova & Carmelo Latino & Loriana Pelizzon, 2021. "Inside the ESG ratings: (Dis)agreement and performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1426-1445, September.
    16. MingCan JI & Xing Zhang, 2024. "Assessing the Impacts and Mechanisms of Green Bond Financing on the Enhancement of Green Management and Technological Innovation in Environmental Conservation Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12709-12750, September.
    17. Mariusz Dacko & Aleksandra Płonka & Łukasz Satoła & Aneta Dacko, 2021. "Sustainable Development According to the Opinions of Polish Experts," Energies, MDPI, vol. 14(17), pages 1-18, August.
    18. Thomas Allen & Stéphane Dees & Jean Boissinot & Carlos Mateo Caicedo Graciano & Valérie Chouard & Laurent Clerc & Annabelle de Gaye & Antoine Devulder & Sébastien Diot & Noémie Lisack & Fulvio Pegorar, 2020. "Climate-Related Scenarios for Financial Stability Assessment: an Application to France," Working papers 774, Banque de France.
    19. Ricardo Gimeno & Clara I. González, 2022. "The role of a green factor in stock prices. When Fama & French go green," Working Papers 2207, Banco de España.
    20. Cao, Fuguo & Li, Runyu & Guo, Shaobo, 2024. "Rhetoric and reality of public-private partnerships in China: A sustainable public procurement perspective," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2421-:d:334540. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.