IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v34y2026i4p4543-4554.html

The Interplay of Digitalization, Green Finance, and Institutional Quality in Overcoming Corruption's Impediments to Environmental Sustainability

Author

Listed:
  • Ummukhulthum Adamu Ibrahim
  • Abraham Deka
  • Huseyin Ozdeser

Abstract

Green finance, digitalization, and institutional quality are fundamental in fostering a green transition for environmental sustainability. However, in the developing nations, corruption impedes the role of green finance and financial development from enhancing environmental sustainability in various ways. Corruption diverts and misappropriates green funds, weakens environmental governance and policy, distorts financial development for green growth, and erodes public trust and institutional capacity. This research examines the role of digitalization and institutional quality in advancing environmental sustainability, as well as addressing how high corruption impedes green finance from advancing a green transition. This research employs longitudinal annual data of the 15 West African economies from 2000 to 2022, which is analyzed with the Driscoll–Kraay method. The robustness of the findings is checked with the “Panel Correlated Standards Error” and “Feasible Generalized Least Square” methods. The research findings support that digitalization, institutional quality, and renewable energy support environmental sustainability. However, corruption impedes green finance and financial development on environmental sustainability in the developing nations. Therefore, this research calls for the developing nations to address the corrosive grip through anti‐corruption measures, capacity building, policy reforms, and international cooperation.

Suggested Citation

  • Ummukhulthum Adamu Ibrahim & Abraham Deka & Huseyin Ozdeser, 2026. "The Interplay of Digitalization, Green Finance, and Institutional Quality in Overcoming Corruption's Impediments to Environmental Sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(4), pages 4543-4554, August.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:4:p:4543-4554
    DOI: 10.1002/sd.70560
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.70560
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.70560?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    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:wly:sustdv:v:34:y:2026:i:4:p:4543-4554. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    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.