IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v34y2026is2p924-938.html

Analyzing the Nexus Between Economic Policies and SDG 13 in G7 Countries: An fsQCA Approach

Author

Listed:
  • Mohsin Rasheed
  • Jianhua Liu

Abstract

This study examines how policy mixes shape progress toward SDG 13 (climate action) in G7 economies through a configurational lens. Rather than treating instruments in isolation, the analysis reveals that outcomes emerge from complementarities and substitutions among governance arrangements, mitigation policies, finance–innovation systems, fiscal tools, renewable energy deployment, and labor–transition measures. Two recurrent logics stand out. A governance‐led logic aligns cross‐government coordination with mitigation and renewable deployment, converting similar inputs into faster diffusion—highlighting governance as a policy multiplier. A finance–innovation logic mobilizes capital and learning to advance decarbonization, where fiscal instruments face political or administrative constraints—demonstrating functional substitutability among instruments. Across configurations, comprehensive mitigation remains a non‐negotiable foundation, while the contribution of other elements is contingent on institutional context. The findings contribute theoretically by specifying when instruments act as complements versus substitutes and by clarifying how institutional coherence conditions policy effectiveness. For practice, they translate into portfolio guidance: prioritize mitigation as the baseline; pair it with governance alignment where administrative capacity is strong; or leverage finance–innovation channels where fiscal space is limited, buttressed by just‐transition measures. This configurational perspective provides a roadmap for context‐sensitive decarbonization strategies in advanced economies.

Suggested Citation

  • Mohsin Rasheed & Jianhua Liu, 2026. "Analyzing the Nexus Between Economic Policies and SDG 13 in G7 Countries: An fsQCA Approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S2), pages 924-938, March.
  • Handle: RePEc:wly:sustdv:v:34:y:2026:i:s2:p:924-938
    DOI: 10.1002/sd.70371
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.70371
    Download Restriction: no

    File URL: https://libkey.io/10.1002/sd.70371?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
    ---><---

    References listed on IDEAS

    as
    1. Song Wenjuan & Kai Zhao, 2023. "Balancing fiscal expenditure competition and long-term innovation investment: Exploring trade-offs and policy implications for local governments," PLOS ONE, Public Library of Science, vol. 18(11), pages 1-31, November.
    2. Michael Schedelik & Andreas Nölke & Daniel Mertens & Christian May, 2021. "Comparative Capitalism, Growth Models and Emerging Markets: The Development of the Field," New Political Economy, Taylor & Francis Journals, vol. 26(4), pages 514-526, July.
    3. Mounir Dahmani, 2024. "Environmental quality and sustainability: exploring the role of environmental taxes, environment-related technologies, and R&D expenditure," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 26(2), pages 449-477, April.
    4. Pilar Guaita‐Fernández & José María Martín Martín & Samuel Ribeiro Navarrete & Rosa Puertas, 2024. "Analysis of gender‐based violence in the context of the sustainable development goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4946-4958, October.
    5. Gilbert E. Metcalf, 2021. "Carbon Taxes in Theory and Practice," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 245-265, October.
    6. Nan Li & Yanzhao Tang & Guangyu Xia & Hongqin Tang & He Li, 2024. "Institutional Environment and Productive Entrepreneurship," Sustainability, MDPI, vol. 16(24), pages 1-18, December.
    7. Jonathan H. Westover, 2025. "Navigating Paradox for Sustainable Futures: Organizational Capabilities and Integration Mechanisms in Sustainability Transformation," Sustainability, MDPI, vol. 17(15), pages 1-48, August.
    8. Xiaolan Fu & Giacomo Zanello & Carmen Contreras & Xuechen Ding, 2024. "Innovation under constraints: the role of open innovation in Ghana," Industry and Innovation, Taylor & Francis Journals, vol. 31(4), pages 444-474, April.
    9. Pappas, Ilias O. & Papavlasopoulou, Sofia & Mikalef, Patrick & Giannakos, Michail N., 2020. "Identifying the combinations of motivations and emotions for creating satisfied users in SNSs: An fsQCA approach," International Journal of Information Management, Elsevier, vol. 53(C).
    10. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    11. Ashutosh Jha & Debashis Saha, 2025. "Exploring Pure 4G Diffusion in India and its Connect with Human Development and Urbanization," Information Systems Frontiers, Springer, vol. 27(5), pages 1943-1971, October.
    12. Faruque As Sunny & Eila Jeronen & Juping Lan, 2024. "Influential Theories of Economics in Shaping Sustainable Development Concepts," Administrative Sciences, MDPI, vol. 15(1), pages 1-33, December.
    13. Idiano D'Adamo & Alessandro Dell'Aguzzo & Marco Pruckner, 2024. "Residential photovoltaic and energy storage systems for sustainable development: An economic analysis applied to incentive mechanisms," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 84-100, February.
    14. Wang, Wei & Liu, Dongsheng & Chen, Lifeng & Song, Meizhe & Xu, Jiaqi, 2024. "Assessment of impacts of green technology and innovation on sustainable mineral resource production," Resources Policy, Elsevier, vol. 90(C).
    Full references (including those not matched with items on IDEAS)

    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. Fábio T. F. Silva & Alexandre Szklo & Amanda Vinhoza & Ana Célia Nogueira & André F. P. Lucena & Antônio Marcos Mendonça & Camilla Marcolino & Felipe Nunes & Francielle M. Carvalho & Isabela Tagomori , 2022. "Inter-sectoral prioritization of climate technologies: insights from a Technology Needs Assessment for mitigation in Brazil," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(7), pages 1-39, October.
    2. Hirt, Léon F. & Sahakian, Marlyne & Trutnevyte, Evelina, 2022. "What subnational imaginaries for solar PV? The case of the Swiss energy transition," Technology in Society, Elsevier, vol. 71(C).
    3. John A. Mathews, 2020. "Schumpeterian economic dynamics of greening: propagation of green eco-platforms," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 929-948, September.
    4. Marco Gallegati, 2019. "A system for dating long wave phases in economic development," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 803-822, July.
    5. Hill, Genia & Zurek, Monika & Obersteiner, Michael, 2026. "From local landscapes to global: A cross-scale and cross-level framework for a more just food systems transformation," Land Use Policy, Elsevier, vol. 161(C).
    6. Oliver Falck & Anita Fichtl & Tobias Lohse & Friederike Welter & Heike Belitz & Cedric von der Hellen & Carsten Dreher & Carsten Schwäbe & Dietmar Harhoff & Monika Schnitzer & Uschi Backes-Gellner & C, 2019. "Steuerliche Forschungsförderung: Wichtiger Impuls für FuE-Aktivitäten oder zu wenig zielgerichtet?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(09), pages 03-25, May.
    7. Wiegand, Julia, 2017. "Dezentrale Stromerzeugung als Chance zur Stärkung der Energie-Resilienz: Eine qualitative Analyse kommunaler Strategien im Raum Unna," Wuppertaler Studienarbeiten zur nachhaltigen Entwicklung, Wuppertal Institute for Climate, Environment and Energy, volume 11, number 11, March.
    8. Oliver Wagner & Thomas Adisorn & Lena Tholen & Dagmar Kiyar, 2020. "Surviving the Energy Transition: Development of a Proposal for Evaluating Sustainable Business Models for Incumbents in Germany’s Electricity Market," Energies, MDPI, vol. 13(3), pages 1-17, February.
    9. Jordi Molas-Gallart & Alejandra Boni & Sandro Giachi & Johan Schot, 2021. "A formative approach to the evaluation of Transformative Innovation Policies [The Need for Reflexive Evaluation Approaches in Development Cooperation]," Research Evaluation, Oxford University Press, vol. 30(4), pages 431-442.
    10. Spaniol, Matthew J. & Rowland, Nicholas J., 2022. "Business ecosystems and the view from the future: The use of corporate foresight by stakeholders of the Ro-Ro shipping ecosystem in the Baltic Sea Region," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    11. Upham, Dr Paul & Sovacool, Prof Benjamin & Ghosh, Dr Bipashyee, 2022. "Just transitions for industrial decarbonisation: A framework for innovation, participation, and justice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    12. Marco Bornstein & Amrit Singh Bedi, 2026. "AI Cap-and-Trade: Efficiency Incentives for Accessibility and Sustainability," Papers 2601.19886, arXiv.org, revised May 2026.
    13. Capellán-Pérez, Iñigo & Campos-Celador, Álvaro & Terés-Zubiaga, Jon, 2018. "Renewable Energy Cooperatives as an instrument towards the energy transition in Spain," Energy Policy, Elsevier, vol. 123(C), pages 215-229.
    14. Sylvain, Dernat & Bertrand, Dumont & Dominique, Vollet, 2023. "La Grange®: A generic game to reveal trade-offs and synergies among stakeholders in livestock farming areas," Agricultural Systems, Elsevier, vol. 209(C).
    15. Funcke, Simon & Bauknecht, Dierk, 2016. "Typology of centralised and decentralised visions for electricity infrastructure," Utilities Policy, Elsevier, vol. 40(C), pages 67-74.
    16. Bessi, Alessandro & Guidolin, Mariangela & Manfredi, Piero, 2021. "The role of gas on future perspectives of renewable energy diffusion: Bridging technology or lock-in?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    17. Meina Zhou & Yiqun Sun & Hao Ji, 2025. "The Impact of Financial Inclusion on Sustainable Development in China: A Panel fsQCA Analysis," SAGE Open, , vol. 15(4), pages 21582440251, December.
    18. João Tovar Jalles, 2024. "Financial Crises and Climate Change," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(1), pages 166-190, March.
    19. Eleftheria Vasileiadou & Boukje Huijben & Rob Raven, 2014. "Crowdfunding niches? Exploring the potential of crowdfunding for financing renewable energy niches in the Netherlands," Working Papers 14-11, Eindhoven Center for Innovation Studies, revised Nov 2014.
    20. Florian Knobloch & Hector Pollitt & Unnada Chewpreecha & Vassilis Daioglou & Jean-Francois Mercure, 2017. "Simulating the deep decarbonisation of residential heating for limiting global warming to 1.5C," Papers 1710.11019, arXiv.org, revised May 2018.

    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:s2:p:924-938. 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: 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.