IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i21p11034-d660811.html
   My bibliography  Save this article

The Impact of Sustainability Goals on Productivity Growth: The Moderating Role of Global Warming

Author

Listed:
  • Domicián Máté

    (Department of Engineering Management and Entrepreneurship, Faculty of Engineering, University of Debrecen, H-4028 Debrecen, Hungary
    College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa)

  • Adam Novotny

    (College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa
    Faculty of Economics and Social Sciences, Eszterházy Károly Catholic University, H-3300 Eger, Hungary
    Business School, Nord University, 8026 Bodø, Norway)

  • Daniel Francois Meyer

    (College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa)

Abstract

The objective of this paper was to gain novel insights into the complex relationships among Sustainable Development Goals (SDGs) in shaping productivity (GDP/capita) growth. Using dynamic panel regressions on data collected in 138 countries between 2000 and 2017, we found that rising temperatures negatively affect growth and mitigate the impact of other SDGs on growth. We also found that CO 2 emissions have a U-shaped relationship with growth; life expectancy negatively influences growth (positively moderated by rising temperatures), and food security positively impacts growth (negatively moderated by rising temperatures). This study highlights the difficulty of simultaneously implementing SDGs and elucidates novel research perspectives and policies to decrease the negative impacts of climate change on socio-economic and environmental well-being.

Suggested Citation

  • Domicián Máté & Adam Novotny & Daniel Francois Meyer, 2021. "The Impact of Sustainability Goals on Productivity Growth: The Moderating Role of Global Warming," IJERPH, MDPI, vol. 18(21), pages 1-13, October.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:21:p:11034-:d:660811
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/21/11034/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/18/21/11034/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rigas, Nikos & Kounetas, Konstantinos, 2021. "The Role of temperature, Precipitation and CO2 emissions on Countries’ Economic Growth and Productivity," MPRA Paper 104727, University Library of Munich, Germany.
    2. Matteo Cervellati & Uwe Sunde, 2011. "Life expectancy and economic growth: the role of the demographic transition," Journal of Economic Growth, Springer, vol. 16(2), pages 99-133, June.
    3. Vandenbroucke, Guillaume, 2021. "The baby boomers and the productivity slowdown," European Economic Review, Elsevier, vol. 132(C).
    4. Esso, Loesse Jacques & Keho, Yaya, 2016. "Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries," Energy, Elsevier, vol. 114(C), pages 492-497.
    5. Marshall Burke & Solomon M. Hsiang & Edward Miguel, 2015. "Global non-linear effect of temperature on economic production," Nature, Nature, vol. 527(7577), pages 235-239, November.
    6. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
    7. Roberto Roson & Dominique Van der Mensbrugghe, 2012. "Climate change and economic growth: impacts and interactions," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(3), pages 270-285.
    8. Joshua Graff Zivin & Matthew Neidell, 2014. "Temperature and the Allocation of Time: Implications for Climate Change," Journal of Labor Economics, University of Chicago Press, vol. 32(1), pages 1-26.
    9. Domicián Máté & Mohammad Fazle Rabbi & Adam Novotny & Sándor Kovács, 2020. "Grand Challenges in Central Europe: The Relationship of Food Security, Climate Change, and Energy Use," Energies, MDPI, vol. 13(20), pages 1-16, October.
    10. Valeria De Laurentiis & Dexter V.L. Hunt & Christopher D.F. Rogers, 2016. "Overcoming Food Security Challenges within an Energy/Water/Food Nexus (EWFN) Approach," Sustainability, MDPI, vol. 8(1), pages 1-23, January.
    11. Tomoko Hasegawa & Shinichiro Fujimori & Petr Havlík & Hugo Valin & Benjamin Leon Bodirsky & Jonathan C. Doelman & Thomas Fellmann & Page Kyle & Jason F. L. Koopman & Hermann Lotze-Campen & Daniel Maso, 2018. "Risk of increased food insecurity under stringent global climate change mitigation policy," Nature Climate Change, Nature, vol. 8(8), pages 699-703, August.
    12. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    13. Jeremi s M t Balogh & Attila J mbor, 2017. "Determinants of CO2 Emission: A Global Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 217-226.
    14. Robert J. Nicholls & Abiy S. Kebede, 2012. "Indirect impacts of coastal climate change and sea-level rise: the UK example," Climate Policy, Taylor & Francis Journals, vol. 12(sup01), pages 28-52, September.
    15. Muhammad Kamran Khan & Muhammad Imran Khan & Muhammad Rehan, 2020. "The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-13, December.
    16. Nair, Mahendhiran & Arvin, Mak B. & Pradhan, Rudra P. & Bahmani, Sahar, 2021. "Is higher economic growth possible through better institutional quality and a lower carbon footprint? Evidence from developing countries," Renewable Energy, Elsevier, vol. 167(C), pages 132-145.
    17. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2012. "Temperature Shocks and Economic Growth: Evidence from the Last Half Century," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(3), pages 66-95, July.
    18. Mathew E. Hauer & Alexis R. Santos-Lozada, 2021. "Inaction on Climate Change Projected to Reduce European Life Expectancy," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(3), pages 629-638, June.
    19. Siong Law & W. Azman-Saini, 2012. "Institutional quality, governance, and financial development," Economics of Governance, Springer, vol. 13(3), pages 217-236, September.
    20. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    21. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
    22. James Horrocks & Andrea Kutinova Menclova, 2011. "The effects of weather on crime," New Zealand Economic Papers, Taylor & Francis Journals, vol. 45(3), pages 231-254, September.
    23. Smith, Michael D. & Rabbitt, Matthew P. & Coleman- Jensen, Alisha, 2017. "Who are the World’s Food Insecure? New Evidence from the Food and Agriculture Organization’s Food Insecurity Experience Scale," World Development, Elsevier, vol. 93(C), pages 402-412.
    24. Roberto Roson & Dominique Van der Mensbrugghe, 2012. "Climate change and economic growth: impacts and interactions," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(3), pages 270-285.
    25. Lechtenböhmer, Stefan & Nilsson, Lars J. & Åhman, Max & Schneider, Clemens, 2016. "Decarbonising the energy intensive basic materials industry through electrification – Implications for future EU electricity demand," Energy, Elsevier, vol. 115(P3), pages 1623-1631.
    26. Daron Acemoglu & Simon Johnson, 2007. "Disease and Development: The Effect of Life Expectancy on Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 925-985, December.
    27. Mirza Nouman Ali Talib & Masood Ahmed & Mirza Muhammad Naseer & Beata Slusarczyk & József Popp, 2021. "The Long-Run Impacts of Temperature and Rainfall on Agricultural Growth in Sub-Saharan Africa," Sustainability, MDPI, vol. 13(2), pages 1-16, January.
    28. Baltagi, Badi H., 2015. "The Oxford Handbook of Panel Data," OUP Catalogue, Oxford University Press, number 9780199940042.
    29. Elmar Kriegler & Jae Edmonds & Stéphane Hallegatte & Kristie Ebi & Tom Kram & Keywan Riahi & Harald Winkler & Detlef Vuuren, 2014. "A new scenario framework for climate change research: the concept of shared climate policy assumptions," Climatic Change, Springer, vol. 122(3), pages 401-414, February.
    30. Deolalikar, Anil B, 1988. "Nutrition and Labor Productivity in Agriculture: Estimates for Rural South India," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 406-413, August.
    31. Richard S. J. Tol, 2009. "The Economic Effects of Climate Change," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 29-51, Spring.
    32. Allen, Cameron & Metternicht, Graciela & Wiedmann, Thomas, 2016. "National pathways to the Sustainable Development Goals (SDGs): A comparative review of scenario modelling tools," Environmental Science & Policy, Elsevier, vol. 66(C), pages 199-207.
    33. Alberto Ansuategi & Charles Perrings, 2000. "Transboundary Externalities in the Environmental Transition Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(4), pages 353-373, December.
    34. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    35. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    36. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    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. Fadhlur Rahim Azmi & Suhaiza Zailani & Mastura Roni, 2023. "A Review of the Critical Gaps in the Food Security Literature: Addressing Key Issues for Sustainable Development," Information Management and Business Review, AMH International, vol. 15(2), pages 35-46.
    2. Kazuhiro Yamamoto & Yusei Akai & Naoki Hayashi, 2022. "Numerical Simulation of Spray Combustion with Ultrafine Oxygen Bubbles," Energies, MDPI, vol. 15(22), pages 1-15, November.
    3. Putri Aliah Mohd Hidzir & Shafinar Ismail & Sharifah Heryati Syed Nor & Aqilah Nadiah Md Sahiq, 2023. "Financial Well-Being of Micro-Entrepreneurs: A Proposed Conceptual Framework," Information Management and Business Review, AMH International, vol. 15(3), pages 418-428.
    4. Matteo Trane & Luisa Marelli & Alice Siragusa & Riccardo Pollo & Patrizia Lombardi, 2023. "Progress by Research to Achieve the Sustainable Development Goals in the EU: A Systematic Literature Review," Sustainability, MDPI, vol. 15(9), pages 1-37, April.
    5. Guangfan Sun & Changwei Guo & Junchen Ye & Chaoran Ji & Nuo Xu & Hanqi Li, 2022. "How ESG Contribute to the High-Quality Development of State-Owned Enterprise in China: A Multi-Stage fsQCA Method," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    6. Bytyqi Ardita & Abazi-Alili Hyrije & Hadzimustafa Shenaj, 2024. "Economic Growth and Environmental Sustainability determinants: a panel ARDL evidence for EU Countries," Logistics, Supply Chain, Sustainability and Global Challenges, Sciendo, vol. 15(s1), pages 71-82.
    7. George Martinidis & Arkadiusz Dyjakon & Stanisław Minta & Rafał Ramut, 2022. "Intellectual Capital and Sustainable S3 in the Regions of Central Macedonia and Western Macedonia, Greece," Sustainability, MDPI, vol. 14(16), pages 1-17, August.

    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. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    2. Letta, Marco & Montalbano, Pierluigi & Tol, Richard S.J., 2018. "Temperature shocks, short-term growth and poverty thresholds: Evidence from rural Tanzania," World Development, Elsevier, vol. 112(C), pages 13-32.
    3. Kalkuhl, Matthias & Wenz, Leonie, 2020. "The impact of climate conditions on economic production. Evidence from a global panel of regions," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    4. Franziska Piontek & Matthias Kalkuhl & Elmar Kriegler & Anselm Schultes & Marian Leimbach & Ottmar Edenhofer & Nico Bauer, 2019. "Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1357-1385, August.
    5. Aysit Tansel & Ceyhan Ozturk & Erkan Erdil, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," Koç University-TUSIAD Economic Research Forum Working Papers 2118, Koc University-TUSIAD Economic Research Forum.
    6. Dierk Herzer & Holger Strulik & Sebastian Vollmer, 2012. "The long-run determinants of fertility: one century of demographic change 1900–1999," Journal of Economic Growth, Springer, vol. 17(4), pages 357-385, December.
    7. Tol, Richard S.J., 2024. "A meta-analysis of the total economic impact of climate change," Energy Policy, Elsevier, vol. 185(C).
    8. Tol, Richard S.J., 2019. "A social cost of carbon for (almost) every country," Energy Economics, Elsevier, vol. 83(C), pages 555-566.
    9. Okada, Keisuke, 2013. "The interaction effects of financial openness and institutions on international capital flows," Journal of Macroeconomics, Elsevier, vol. 35(C), pages 131-143.
    10. Hajamini, Mehdi & Falahi, Mohammad Ali, 2018. "Economic growth and government size in developed European countries: A panel threshold approach," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 1-13.
    11. Peter H. Howard & Thomas Sterner, 2017. "Few and Not So Far Between: A Meta-analysis of Climate Damage Estimates," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 197-225, September.
    12. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    13. Newell, Richard G. & Prest, Brian C. & Sexton, Steven E., 2021. "The GDP-Temperature relationship: Implications for climate change damages," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    14. Clement Olalekan Olaniyi & Sunday Idowu Oladeji, 2021. "Moderating the effect of institutional quality on the finance–growth nexus: insights from West African countries," Economic Change and Restructuring, Springer, vol. 54(1), pages 43-74, February.
    15. Joseph P. Byrne & Prince Asare Vitenu-Sackey, 2024. "The Macroeconomic Impact of Global and Country-Specific Climate Risk," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(3), pages 655-682, March.
    16. Andrew Berg & Jonathan D. Ostry & Charalambos G. Tsangarides & Yorbol Yakhshilikov, 2018. "Redistribution, inequality, and growth: new evidence," Journal of Economic Growth, Springer, vol. 23(3), pages 259-305, September.
    17. Nina Knittel & Martin W. Jury & Birgit Bednar-Friedl & Gabriel Bachner & Andrea K. Steiner, 2020. "A global analysis of heat-related labour productivity losses under climate change—implications for Germany’s foreign trade," Climatic Change, Springer, vol. 160(2), pages 251-269, May.
    18. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    19. Otto Brøns-Petersen & Søren Havn Gjedsted, 2021. "Climate change and institutional change: what is the relative importance for economic performance?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 333-360, April.
    20. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.

    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:jijerp:v:18:y:2021:i:21:p:11034-:d:660811. 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.