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Forging a Sustainable Future in G20 Economies: The Transformative Role of Technological Innovation, Green Finance and Higher Education Amid Globalization and Entrepreneurial Growth

Author

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  • Meng Pei

    (College of Educational Sciences, Yangzhou University, Yangzhou 225002, China
    Youth League Committee, Changzhou University, Changzhou 213159, China)

  • Riya Tabish

    (National Institute of Environmental Management (NIOEM), Lahore 54792, Pakistan)

Abstract

Environmental degradation poses a significant global challenge which necessitates innovative strategies to achieve sustainability. This study investigates the impact of technological innovation (TCN), higher education (EDU), green finance (GRF), globalization (GLI), and entrepreneurship (ENT) on environmental quality (EQ) in G20 countries. The study uses panel data from 2000 to 2020 to investigate relationships between study variables. Among the various diagnostic tests conducted, the Variance Inflation Factor (VIF) confirms that multicollinearity is not present. Furthermore, the cross-sectional dependence (CSD) test identifies cross-sectional interdependence among the study variables. Moreover, the slope homogeneity (SL) test indicates heterogeneity in the data. For the stationarity check, the Cross-Sectional Augmented Im–Pesaran–Shin (CIPS) test indicates mixed results. Finally, the study uses the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) and the Generalized Method of Moments (GMM) for the long- and short-run analysis of variables. The outcomes of CS-ARDL indicate that GLI has a significant negative impact on EQ, hence causing deterioration in G20 economies. On the other hand, TCN, EDU, GRF, and ENT show positive and significant impacts on EQ, therefore enhancing environmental outcomes. Additionally, the Dumitrescu–Hurlin causality test reveals bidirectional causality, which highlights the interconnected relationship between TCN and ENT with EQ. However, GRF, EDU, and GLI demonstrate unidirectional causality with EQ. The takeaway of the study focuses on the importance of policies in promoting green innovation, resource efficiency, and sustainable practices to advance environmental quality within G20 economies.

Suggested Citation

  • Meng Pei & Riya Tabish, 2025. "Forging a Sustainable Future in G20 Economies: The Transformative Role of Technological Innovation, Green Finance and Higher Education Amid Globalization and Entrepreneurial Growth," Sustainability, MDPI, vol. 17(8), pages 1-30, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3321-:d:1630621
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    Keywords

    technological advancements; green finance; sustainability; entrepreneurship; G20;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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