From Scarcity to Sustainability: Impact of Environmental Poverty on Green Growth in Developing Countries

This study contributes to the existing literature by comprehensively analysing the nexus between environmental poverty and green growth. This study uses the augmented mean group technique to explore the effects of environmental poverty on the advancement of sustainable development in developing nations between 1990 and 2023. The sample consists of various developing countries, examining data on environmental factors, socio‐economic metrics, and trade policies. The empirical methodology employs rigorous econometric methods, such as the Augmented Mean Group and Common Correlated Effects Mean Group estimators, to address cross‐sectional dependency and slope heterogeneity. The main findings indicate that environmental poverty significantly hinders green growth, with expansionary export policies exacerbating this negative impact. Conversely, green total factor productivity, the digital economy, sustainable innovation, contractionary export policies, and efficient use of labor and capital contribute positively to green growth. Policy implications include the need for broad policies to combat environmental poverty through better waste management, environmentally friendly farming, and natural habitat protection. To increase green growth, it is crucial to prioritize the digital economy, promote sustainable innovation, and maintain a balance in export policy. Global cooperation and financial support for environmentally friendly technology are essential for attaining sustainable development objectives.