Ho do a, De eje Fedasa
A icle
Examining he dynamics be ween banking sec o pe o mance,
en i onmen al sus ainabili y, and en i onmen al echnology
inno a ion: e idence om G20 coun ies
Cogen Business & Managemen
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Sugges ed Ci a ion: Ho do a, De eje Fedasa (2024) : Examining he dynamics be ween banking sec o
pe o mance, en i onmen al sus ainabili y, and en i onmen al echnology inno a ion: e idence
om G20 coun ies, Cogen Business & Managemen , ISSN 2331-1975, Taylo & F ancis, Abingdon,
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ISSN: 2331-1975 (Online) Jou nal homepage: www. and online.com/jou nals/oabm20
Examining he dynamics be ween banking sec o
pe o mance, en i onmen al sus ainabili y, and
en i onmen al echnology inno a ion: e idence
om G20 coun ies
De eje Fedasa Ho do a
To ci e his a icle: De eje Fedasa Ho do a (2024) Examining he dynamics be ween
banking sec o pe o mance, en i onmen al sus ainabili y, and en i onmen al echnology
inno a ion: e idence om G20 coun ies, Cogen Business & Managemen , 11:1, 2368709, DOI:
10.1080/23311975.2024.2368709
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ACCOUNTING, CORPORATE GOVERNANCE & BUSINESS ETHICS |
RESEARCH ARTICLE
Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2368709
Examining he dynamics be ween banking sec o pe o mance,
en i onmen al sus ainabili y, and en i onmen al echnology
inno a ion: e idence om G20 coun ies
De eje Fedasa Ho do a
Depa men o economics, Di e Dawa uni e si y, Di e Dawa, e hiopia
ABSTRACT
P e ious s udies examined sus ainabili y-inno a ion and banking-inno a ion linkages
sepa a ely. This esea ch add esses ha gap by join ly analyzing he ela ionships
be ween en i onmen al sus ainabili y, i e banking pe o mance me ics, and echnology
inno a ion in G20 na ions om 1990 o 2022. The s udy cons uc s a banking
pe o mance index om i e indica o s, including e u n on asse s, equi y, deposi s as
a pe cen o GDP, isk sco es, and ma ke capi aliza ion. A comp ehensi e IV-GMM
app oach con ols o endogenei y using lagged a iables as ins umen s in a wo-s ep
GMM model, along wi h he Lewbel me hod. Addi ional obus ness is p o ided by
c oss-sec ional, ime-se ies FGLS eg ession. Resul s show sus ainabili y consis en ly
boos s inno a ion di ec ly. Howe e , examining indi idual banking me ics e eals ha
he pe o mance index nega i ely co ela es wi h inno a ion, excluding isk sco es.
Mos in e ac ion e ms mi o sus ainabili y’s in luence, hough e u ns and
concen a ions di e ge. In oducing in e ac ion e ms also in e s p io index
ela ionships a imes. Analyzing di ec , in e ac i e, and ne impac s o e s di e en
iews han indexing alone. The pe o mance index posi i ely links o ne analyses
e sus o he speci ica ions. O e all, he indings p o ide empi ically g ounded insigh s
in o hese dynamics wi hin in luen ial na ions. Non-linea i ies a e obse ed be ween
agg ega e and disagg ega e banking indica o s. Conside ing me ics om di e se
analy ical angles h ough a mul idimensional lens in o ms op imized policy balances.
1. In oduc ion
Conside ing he signi ican in luence o majo economies’ policies on global sus ainabili y, i is impo an o
explo e he ela ionship be ween banking sec o pe o mance, en i onmen al egula ions, and g een inno-
a ion wi hin G20 na ions. The G20’s signi ican global economic in luence and popula ion size p esen
g ea po en ial o maximizing he bene i s o e ec i e collabo a ion. Al hough p e ious s udies ha e p o-
ided aluable insigh s, he e a e s ill some gaps ha he cu en esea ch aims o add ess. S iking a bal-
ance be ween en i onmen al sus ainabili y and economic g ow h is a pe sis en global challenge, as
highligh ed by he In e go e nmen al Panel on Clima e Change (Banne man, 2020; Guang‐Wen e al., 2023)
All sec o s mus make e o s o achie e he ambi ious global goals ela ed o add essing clima e change.
The banking sec o plays a i al ole in di ec ing capi al owa ds a ious business ac i i ies (Shahab e al.,
2018). Simul aneously, ad ancemen s in en i onmen al echnology a e d i ing he de elopmen o solu-
ions ha can e ec i ely deca bonize economies and mi iga e a ious impac s (Hsu e al., 2021).
Recen esea ch has examined mul iple ac o s ha impac en i onmen al sus ainabili y and inno a-
ion. S udies ha e demons a ed ha go e nance mechanisms such as boa d di e si y (Elmag hi e al.,
2019) and sus ainabili y commi ees (T an e al., 2021) ha e a posi i e in luence on disclosu e and pe -
o mance. Howe e , i has been ound ha s ic e egula ions do no enhance he ole o boa ds in
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup
CONTACT De eje Fedasa Ho do a de eje [email p o ec ed] Depa men o economics, Di e Dawa uni e si y, Di e Dawa, e hiopia.
h ps://doi.o g/10.1080/23311975.2024.2368709
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
Recei ed 12 Oc obe
2023
Re ised 11 June 2024
Accep ed 12 June 2024
KEYWORDS
Banking sec o
pe o mance;
en i onmen al
sus ainabili y;
echnological inno a ion;
G20 coun ies; IV-GMM
JEL CLASSIFICATIONS
G21; O30; Q55; Q56
REVIEWING EDITOR
Collins N im, Uni e si y o
Sou hamp on, Uni ed
Kingdom o G ea B i ain
and No he n I eland
SUBJECTS
Economics; Finance;
En i onmen al Economics;
In e na ional Economics
2 D. F. HORDOFA
p omo ing disclosu e (T an e al., 2021). Pee e ec s can also se e as a mo i a ion o inno a ion, as
i ms end o imi a e pe cei ed leade s in he ield (Machoko o e al., 2021). Ini ia i es ha a e associa ed
wi h ma ke s do no always lead o desi ed ou comes and ins ead may con ibu e o he pe cep ion o
‘g eenwashing,’ as desc ibed by Haque and N im (2022) and O azalin e al. (2024). Sha ing c edi in o -
ma ion has been ound o dec ease loan de aul s, bu his e ec is dependen on he le el o concen-
a ion, as shown in a s udy by Fosu e al. (2020). Ne e heless, he quali y o go e nance had a minimal
e ec on mi iga ing hese impac s. Sus ainabili y is in luenced by policies, leade ship, pee s, and disclo-
su e, as indica ed by Elmag hi e al. (2019) and Shahab e al. (2020). Howe e , symbolic ac ions occasion-
ally de ia e om b inging abou subs an ial change, as no ed by Haque and N im (2022) and O azalin
e al. (2024). Conside ing he signi ican in luence o majo economies’ policies on global sus ainabili y,
i is necessa y o in es iga e he ela ionship be ween he pe o mance o he banking sec o , en i on-
men al egula ions, and g een inno a ion in G20 na ions. The G20, which ep esen s mo e han 85% o
global GDP and wo- hi ds o he wo ld’s popula ion (Wang & Dong, 2021) has he po en ial o gene a e
signi ican ad an ages by maximizing coope a ion and collabo a ion be ween hese domains. Al hough
p e ious s udies ha e p o ided aluable insigh s, he e a e s ill ce ain gaps ha he cu en esea ch
aims o ill. The simul aneous pu sui o en i onmen al sus ainabili y and economic g ow h poses a pe -
sis en challenge o na ions globally (Haque & N im, 2018). Comp ehensi e measu es a e equi ed in all
indus ies o achie e ambi ious global objec i es ela ed o clima e change mi iga ion. The banking sec-
o plays a c ucial ole in di ec ing capi al owa ds business. Simul aneously, he ad ancemen o en i-
onmen al echnology os e s solu ions ha can acili a e he educ ion o ca bon emissions in economies
and mi iga e a ious en i onmen al consequences (Hsu e al., 2021).
Resea ch has es ablished connec ions be ween inancial de elopmen , sus ainabili y, and inno a ion on
a global scale (Hsu e al., 2021; Liu e al., 2021). Technological ad ancemen s con ibu e o he educ ion
o emissions and suppo sus ainable economic g ow h (Abid e al., 2022). Va ious quan i a i e me hods,
such as da a en elope analysis (DEA), eg ession, and panel analysis, ha e been used o e alua e he ela-
ionships be ween a iables (Anse e al., 2020; Kha ak e al., 2020; Liu e al., 2021). These s udies sugges
he p esence o nonlinea e ec s in he en i onmen al Kuzne s cu e. P io analyses ha e examined he
connec ions be ween inancial de elopmen , sus ainabili y me ics, and g een inno a ions. Mul iple s udies
(Cao e al., 2021; L e al., 2021; Uma & Sa i, 2023) ha e iden i ied ha he implemen a ion o policies ha
p omo e enewable ene gy, en i onmen ally- iendly echnologies, and obus ins i u ions has a consis en
and posi i e impac on educing emissions and imp o ing sus ainabili y o e a pe iod o ime. Digi al
inance plays an ac i e ole in d i ing inno a ion in g een echnology, especially in a eas whe e adi ional
inance alls sho . Va ious ac o s, such as he implemen a ion o enewable ene gy, ad ancemen s in
g een echnology, and he quali y o policies and egula ions, can ha e a non-linea impac on ou comes,
which is dependen on he ini ial condi ions (Anu e al., 2023; Y. Sun e al., 2022)
P io esea ch has p ima ily ocused on assessing he in luence o ac o s like sus ainabili y and inan-
cial de elopmen on echnological p og ess alone (Hsu e al., 2021). Howe e , his app oach o e looks
he po en ial eedback e ec s o inno a ion on sus ainabili y ou comes, esul ing in an incomple e
unde s anding. Despi e he close in e connec ion o inancial, policy, and esea ch and de elopmen
(R&D) domains in eali y, p e ious s udies ha e no ex ensi ely examined he po en ial bene i s o e ec-
i ely aligning economic, egula o y, and inno a ion s a egies (L e al., 2021). Fu he mo e, he p ac ice
o examining indi idual elemen s sepa a ely is mo e common han conduc ing in eg a ed analyses ha
un a el he in e ac ions be ween banking, egula ions, and cu ing-edge solu ions (Liu e al., 2021). A
limi ed concen a ion hinde s he explo a ion o how op imizing he ha mony be ween hese domains
could esul in signi ican en i onmen al ad an ages, gi en ha majo na ions ha e a disp opo iona e
in luence on global a ai s. Conduc ing ocused s udies on connec ions wi hin in luen ial G20 se ings
could help add ess hese empi ical limi a ions and p o ide a deepe unde s anding.
While some in o ma ion is a ailable, ex ensi e esea ch speci ically ocusing on hese dynamics
wi hin he in luen ial G20 g oup o coun ies emains lacking. This s udy aims o ill his gap by
examining he co ela ions be ween he pe o mance o he banking sec o , measu es o en i onmen-
al sus ainabili y, and he inno a ion o en i onmen al echnology in G20 coun ies. This s udy will
examine how a iables such as in es men s in enewable ene gy and g een inno a ions a ec emis-
sion le els and pa e ns o esou ce consump ion. The pu pose o insigh s is o p o ide in o ma ion
COGENT BUSINESS & MANAGEMENT 3
o G20 na ions ha a e looking o p omo e economic de elopmen and en i onmen al s ewa dship
h ough hei policies. The objec i e o his s udy is o gain new insigh s in o he ela ionship be ween
banking, sus ainabili y, and inno a ion. I ocuses on examining he echnological impac o sus ain-
abili y and he po en ial in luences o banking. Many G20 na ions a e se ing long- e m de elopmen
goals, bu achie ing en i onmen ally sus ainable g ow h is challenging and equi es u he in es i-
ga ion in di e en economic con ex s (Alam e al., 2022; W. Cai & Li, 2018; Lu & Chesb ough, 2022).
E iciency and en i onmen ally iendly manu ac u ing ha e imp o ed in G20 coun ies. Howe e ,
he e a e s ill obs acles ha hinde economically sus ainable p og ess. A deepe unde s anding o
global p oduc ion and consump ion challenges is necessa y o o e come hese obs acles.
Fu he mo e, i is c ucial o analyze he connec ions be ween inance, echnology, and en i onmen al pe -
o mance among G20 na ions a a egional le el. Howe e , ou unde s anding o he ela ionship be ween
hese ac o s emains incomple e (Cao e al., 2021; Ku niawan e al., 2023). This esea ch, d i en by a desi e
o add ess knowledge gaps, diligen ly examines he key ac o s in ol ed in e alua ing he in luence o sus-
ainabili y on echnological ad ancemen and explo es he po en ial ole o banking in his con ex (Jiakui
e al., 2023). Acco ding o Oz u k e al. (2023), achie ing long- e m p ospe i y hea ily depends on he ex en-
si e implemen a ion o en i onmen ally conscious inno a ion and esilien g ow h. Wi hin he G20, he e a e
oppo uni ies o de elop cos -e ec i e g een indus ies and anspo a ion by educing sus ainabili y cos s.
Mo eo e , p omo ing en i onmen al economic g ow h equi es s ong s a egies ha suppo he ad ance-
men o eco- echnology in G20 coun ies (X. Sun e al., 2023). Implemen ing e ec i e egula ions is a s a egy
o achie ing goals ela ed o clean ene gy and sus ainable inance. This app oach p omo es p og ess owa ds
en i onmen ally conscious p ospe i y by en o cing s ong policies and penal ies (Abbas e al., 2023; Hasan &
Du, 2023; Saeed Meo & Ka im, 2022; Yi, 2023). By me iculously analyzing he key hemes ela ed o esea ch
ques ions, my objec i e is o o e comp ehensi e insigh s ha add ess he exis ing gaps among G20 coun ies.
Se e al p e ious s udies o e pe inen con ex o analyzing he in e play be ween banking, sus ainabil-
i y, and inno a ion in G20 na ions. Howe e , signi ican esea ch a eas emain unexplo ed. Liu e al. (2021)
and Y. Sun e al. (2022) conduc ed c oss-coun y analyses ha p o ided b oad insigh s bu did no speci -
ically ocus on he signi ican G20 bloc. Raza e al. (2023) and Oz u k e al. (2023) used panel me hods o
assess he ac o s ha in luenced sus ainabili y measu es in G20 coun ies be ween 1990 and 2020.
Al hough bo h analyses p o ided in o ma ion, nei he o hem included an examina ion o he banking
sec o componen . The goal o his p esen s udy is o build on p e ious esea ch by ocusing solely on he
G20 g oup. Because hey a e he wo ld’s majo economies, he G20 membe s ha e a signi ican impac on
global a ge achie emen . The e o e, insigh s ocused on he G20 a e pa icula ly aluable. Howe e , we
ha e no ully elucida ed he complex connec ions be ween inancial pe o mance, en i onmen al endea -
o s, and echnological solu ions in his c ucial g oup. This s udy aims o add ess a ious signi ican knowl-
edge gaps by examining he in e play be ween banking, sus ainabili y, and inno a ion wi hin he G20
amewo k. Speci ically, no p e ious s udy has conduc ed a combined analysis o inancial suppo p o i-
sion, en i onmen al egula ions and impac s, and inno a ion esponses o G20 coun ies.
By cla i ying hese connec ions, G20 go e nmen s can de elop comp ehensi e policy amewo ks
ha p omo e bo h economic g ow h and en i onmen al s ewa dship. The p ima y con ibu ion is o
p o ide no el insigh s ha can expedi e he achie emen o in e na ionally ag eed sus ainabili y goals
wi hin he in luen ial G20 conso ium. A aining sus ainable expansion and os e ing eco- iendly
ad ancemen s a e becoming inc easingly c ucial on a global scale. Howe e , we ha e no ho oughly
in es iga ed he p ecise mechanisms by which sus ainabili y in luences echnological p og ess, no he
in luence o con ex ual ac o s like banking ac i i y on his ela ionship. This esea ch was mo i a ed
by he need o add ess hese knowledge gaps. The s udy aims o achie e ou esea ch objec i es:
1. Assess he impac o he banking indus y’s pe o mance on he de elopmen o en i onmen al
echnology inno a ion in G20 coun ies.
2. E alua e he in luence o en i onmen al sus ainabili y on he de elopmen o echnological ad ancemen s.
3. E alua e he in luence o he banking indus y’s pe o mance wi h he in e ac ion o en i onmen-
al sus ainabili y on en i onmen al echnology inno a ion in G20 coun ies.
4. Analyze he o e all ne impac o sus ainabili y ini ia i es on inno a ion, aking in o conside a ion
he in luence o inancial bank pe o mance.
4 D. F. HORDOFA
This esea ch seeks o enhance comp ehension o hese dynamics wi hin a signi ican G20 con ex by
empi ically examining hypo heses aligned wi h he objec i es. The goal o his s udy is o p o ide aluable
insigh s in o he connec ions be ween he banking sec o ’s pe o mance, en i onmen al sus ainabili y, and
en i onmen al echnology inno a ion. While p e ious s udies ha e sepa a ely examined hese subjec s, a
mo e comp ehensi e analysis is necessa y o comp ehend hei in ica e in e ac ions and b idge he exis -
ing knowledge gaps. This s udy aims o e alua e he o e all impac o en i onmen al sus ainabili y on he
ad ancemen o eco- iendly echnology. Addi ionally, i aims o explo e he po en ial impac o banking
pe o mance on he connec ion be ween sus ainabili y and inno a ion. By add essing hese objec i es, we
an icipa e gaining new empi ical knowledge abou he in luence o sus ainabili y on echnological de el-
opmen as well as how con ex ual ac o s such as banks may in luence his ela ionship. We will u ilize he
ecological oo p in indica o as a comp ehensi e gauge o en i onmen al pe o mance, ensu ing a ho -
ough examina ion. Mo eo e , pa en s pe aining o enewable ene gy se e as a ep esen a i e measu e o
g een inno a ion. The s udy aims o i s use IV-GMM eg ession o analyze linkages using he mos ecen
G20 da a om 1990 o 2022. This will allow o he in es iga ion o dynamics among hese elemen s o e
ime wi hin he majo emi e na ions. By closely analyzing well-de ined ela ionships ha e ol e a ound
he esea ch ques ions, we an icipa e gaining aluable new insigh s ha will ad ance sus ainable de elop-
men goals. The s udy is s uc u ed in o se en sec ions, commencing wi h an in oduc ion ha o e s an
o e iew. Then backg ound in o ma ion, and a e iew o heo e ical li e a u e, a e iew o empi ical li e a-
u e, a esea ch design, empi ical indings, and a conclusion.
2. Backg ound o s udy
The banking sec o ’s signi icance in os e ing bo h economic and ecological wel a e canno be unde -
s a ed (Y. Zhang & Zhou, 2020). Go e nmen s inc easingly ely on he inancial sys em, especially banking
ins i u ions, o de elop and implemen sus ainabili y egula ions aimed a issues like clima e change
(O azalin e al., 2024). Howe e , ela i ely li le esea ch has examined how expansion o he banking
sec o may in luence le els o en i onmen al inno a ion and echnological p og ess, despi e acknowledg-
men s o banking’s impo an con ibu ions o economic g ow h (Jiakui e al., 2023). As he ocus o his
s udy, he G20 bloc accoun s o app oxima ely 84% o global economic ou pu (Banne man, 2020;
D’O azio & Di ks, 2022), making i highly in luen ial. Unsu p isingly, his means G20 na ions also ep esen
a conside able po ion o wo ldwide ene gy consump ion and emissions impac s. As shown in Figu e 1,
China leads G20 ene gy consump ion a an es ima ed 260 million ons o oil equi alen , ollowed by he
Eu opean Union and he Uni ed S a es. This unde sco es he impo ance o examining policies wi hin
hese majo demand-side economies. Figu e 1, panel b illus a es echnology inno a ion ends as p ox-
ied by pa en app o als (L e al., 2021), displaying China a op G20 na ions o eco-inno a ions, ollowed
by Japan and he Uni ed S a es based on Wo ld In ellec ual P ope y O ganiza ion s a is ics om 2000–
2020 (Oz u k e al., 2023). Toge he , hese g aphics se he scope o analysis owa d he consequen ial
G20 bloc as key leade s in con empo a y ene gy usage (Kha ak e al., 2020) and po en ially d i e s o
he solu ions needed o ansi ioning o sus ainabili y goals (Cao e al., 2021; Raza e al., 2023).
G owing emphasis exis s on s eng hening sus ainabili y ules and guidelines wi hin he banking
indus y as well. New policies aim o p omo e g een g ow h, enewable ene gy deploymen , and ene gy
e iciency. E ec i ely ca ying ou such ini ia i es c ucially in ol es ha nessing suppo om he inance
sec o , wi h comme cial banks playing a p ima y ole in e o s o achie e sus ainabili y a ge s. The
in e sec ion be ween inancial sys ems and inno a ion has eme ged as a acili a o o ackling a ious
en i onmen al challenges h ough widesp ead adop ion o eco- iendly echnologies and enewable
esou ces (Fan e al., 2022). P e ious s udies p o ide e idence ha well-pe o ming banking sec o s can
s imula e enewable ene gy inno a ion and sus ainable de elopmen , as seen in China (Li e al., 2023; Y.
Zhang & Zhou, 2020). Access o bank esou ces and suppo has been shown o signi ican ly con ibu e
o ad ancing le els o g een inno a ion o e ime (Chen e al., 2022)
Recen analyses also ind ha banks assis ing g een ini ia i es and p ojec s end o demons a e
s ong inancial pe o mance hemsel es (Abbas e al., 2023; Alsag , 2023). The esou ces p o ided
h ough comme cial and in es men banking ac i i ies can subs an ially impac he implemen a ion o
g een echnologies ac oss di e en indus ies (Z. Ahmed e al., 2022; Hunj a e al., 2023). Fu he mo e,
COGENT BUSINESS & MANAGEMENT 5
banking sec o pe o mance ou comes seem o co ela e closely wi h enhanced acili a ion o wide sus-
ainabili y e o s. The a ailabili y o g een en u e capi al is also dependen on he p ospe i y o local
banking sys ems (Jiakui e al., 2023; H. Khan e al., 2022). Economic down u ns make ob aining inancial
suppo mo e di icul as well (P. Zhang e al., 2023).
This s udy aims o help add ess gaps in unde s anding hese linkages by comp ehensi ely e alua ing
he echnological e ec s o sus ainabili y e o s as well as explo ing banking sec o s’ po en ial o in lu-
ence inno a ion ajec o ies using da a om G20 na ions. This will allow o analyses ac oss coun ies
wi h di e se economic backg ounds, ci cums ances, and policy en i onmen s. P e ious wo k by Yi (2023)
examined he in e ac ions be ween banking pe o mance, en i onmen al sus ainabili y, and eco- echnology
inno a ion wi hin he single-coun y se ing o China. Yi acknowledged he impo ance o hese in e e-
la ed ac o s, bu he ocused on a la gely desc ip i e analysis wi hin na ional bounda ies. The p esen
s udy aims o build upon his unde s anding by aking a mo e comp ehensi e explo a o y app oach and
in es iga ing he unde lying mechanisms and dynamics be ween hese a iables ac oss mul iple econo-
mies. Speci ically, his esea ch e alua es hese ela ionships wi hin he di e se and in luen ial g oup o
G20 na ions. By examining he b oade mul i-coun y con ex and ela ionships be ween in ica e ac o s
o e ime, his s udy pu sues a mo e sophis ica ed comp ehension o sus ainabili y’s echnological
impac s beyond he scope o single-na ion s udies. Expanding analysis o an in e na ional scale allows
o compa ison ac oss di e en economic backg ounds, ci cums ances, and policy en i onmen s wi hin
majo globally in luen ial se ings.
3.Theo e ical li e a u e e iew
3.1. Con ingency heo y as an o e a ching heo e ical amewo k
Con ingency heo y p o ides a aluable heo e ical amewo k o unde s anding he dynamics be ween
banking sec o pe o mance, en i onmen al sus ainabili y, and en i onmen al echnology inno a ion in
he con ex o G20 na ions. This heo y sugges s ha he e ec i eness o o ganiza ional p ac ices and
s a egies depends on how well hey align wi h he ex e nal en i onmen and in e nal capabili ies o he
o ganiza ion (Lee e al., 2016; Lu & Chesb ough, 2022). By d awing on bo h classic and ecen s udies,
Figu e 1. (a) ene gy consump ion in (m ) and (b) echnology inno a ion (pa en applican s) o g20 coun ies.
6 D. F. HORDOFA
we can es ablish a solid heo e ical ounda ion ha links he dependen and independen a iables
oge he , allowing us o o mula e ele an p edic ions and hypo heses.
3.2. Banking sec o pe o mance and en i onmen al sus ainabili y
The i s aspec o ou heo e ical amewo k ocuses on he ela ionship be ween banking sec o pe o -
mance and en i onmen al sus ainabili y. Hsu e al. (2021) emphasize he signi icance o sus ainable busi-
ness pe o mance in he echnology indus y and highligh he posi i e impac o eco-inno a ion
p ac ices on economic, social, and en i onmen al pe o mance. This inding sugges s ha in es men s in
en i onmen al sus ainabili y can lead o imp o ed o e all pe o mance. Mo eo e , Dai (2023) demon-
s a e ha co po a e social esponsibili y (CSR) and g een inance posi i ely in luence en i onmen al pe -
o mance. Hence, we hypo hesize ha a posi i e associa ion exis s be ween banking sec o pe o mance
and en i onmen al sus ainabili y, wi h banks p io i izing en i onmen al sus ainabili y and showing
enhanced o e all pe o mance.
3.3. En i onmen al echnology inno a ion and en i onmen al sus ainabili y
The second pa o ou heo e ical amewo k explo es he ela ionship be ween en i onmen al ech-
nology inno a ion and en i onmen al sus ainabili y. The s udy by Zaka i e al. (2023) unde sco es he
ole o eco-inno a ion s a egies, such as eco-p ocess, eco-p oduc , and eco-o ganiza ional inno a-
ion, in enhancing sus ainable business pe o mance. This sugges s ha echnology-d i en inno a-
ions p omo ing en i onmen al sus ainabili y can con ibu e o imp o ed pe o mance ou comes.
Fu he mo e, Dai (2023) ind ha g een inno a ion media es he ela ionship be ween co po a e
social esponsibili y and en i onmen al pe o mance. Based on hese indings, we p opose a posi i e
associa ion be ween en i onmen al echnology inno a ion and en i onmen al sus ainabili y, wi h
banks engaging in eco-inno a i e p ac ices demons a ing a highe le el o sus ainabili y (Choubey &
Sha ma, 2022).
3.4. Linking he a iables: he con ingen ole o ma ke u bulence
Expanding on con ingency heo y, we p esen he ole o ma ke u bulence as a mode a ing ac o in
he connec ion be ween banking sec o pe o mance, en i onmen al sus ainabili y, and en i onmen al
echnology inno a ion. Acco ding o L e al. (2021), ma ke u bulence has he po en ial o enhance he
bene icial impac o eco-o ganiza ional inno a ion on social pe o mance. The e o e, he e ec o en i-
onmen al sus ainabili y ini ia i es and echnological inno a ion on he pe o mance o he banking sec-
o may di e based on he deg ee o ma ke u bulence. Thus, we p opose ha ma ke u bulence
in luences he connec ions be ween he pe o mance o he banking sec o and en i onmen al sus ain-
abili y, as well as be ween en i onmen al echnology inno a ion and en i onmen al sus ainabili y.
Ou heo e ical amewo k, based on con ingency heo y, sugges s ha he e is a ela ionship be ween
banking sec o pe o mance, en i onmen al sus ainabili y, and en i onmen al echnology inno a ion. The
amewo k d aws on seminal esea ch such as (Choubey & Sha ma, 2022) and Lee e al. (2016) o empha-
size he dependen and a iable na u e o hese connec ions. By in eg a ing ecen esea ch, speci ically
Dai (2023), we imp o e ou comp ehension o he a o able connec ions be ween banking sec o pe o -
mance, en i onmen al sus ainabili y, and en i onmen al echnology inno a ion. In addi ion, he esea che
in oduces ma ke u bulence as a mode a ing ac o , aking in o accoun he con ex ual in luences ha
may in luence hese ela ionships in he Chinese banking sec o .
3.5. Theo e ical amewo k
This s udy seeks o ho oughly in es iga e he impac o banking sec o pe o mance on he de elop-
men o en i onmen al echnology inno a ion and sus ainabili y (Al-Ahdal e al., 2023; Hunj a e al.,
2023). This esea ch employs he widely used S ochas ic Impac s by Reg ession on Popula ion, A luence,
COGENT BUSINESS & MANAGEMENT 7
and Technology (STIRPAT) heo e ical model o conduc he empi ical analysis (Die z & Rosa, 1997; Yo k
e al., 2003). Below is he p esen a ion o IPAT Equa ion (1).
I P AT=**
(1)
whe e I ep esen s he impac o he en i onmen , P is he popula ion numbe , A he a luence, and T
he le el o echnical ad ancemen . O iginally de eloped as an impo an ex ension o he basic IPAT
iden i y (Hold en & Eh lich, 1974), he STIRPAT amewo k allows in es iga ion o mul iple de e minan s’
e ec s in a mul iplica i e o m (Die z & Rosa, 1997) and shows using Equa ion (2) below:
CP A T
i i i i
αα α
ε
123
(2)
whe e Ii ep esen s he en i onmen al impac o ou come o in e es o coun y in ime pe iod . The
independen a iables include popula ion (P), a luence o weal h (A), and echnology (T). The e o
e m is deno ed by ε, while C ep esen s a cons an and he coe icien s o each p edic o by
α
1,
α
2,
and
α
3 espec i ely. The subsc ip s indica e he yea and coun y designa ion. This analysis ocuses
speci ically on en i onmen al impac s quan i ied as ca bon dioxide emissions le els. Po en ial d i e
a iables include GDP pe capi a as a measu e o a luence, o al popula ion size, a es o inno a ion
as cap u ed by pa en app o als, and indica o s o banking sec o pe o mance such as o al asse s o
loans ex ended. The ollowing sec ions aim o empi ically es ela ionships be ween hese ac o s u i-
lizing panel da a echniques applied o he G20 sample o e ecen decades. Banking pe o mance
p oxies o index (BP) ep esen ‘a luence’ (Ch’ng e al., 2021; C eel e al., 2015; Le e al., 2019; Liu e al.,
2021). To al pa en coun s symbolize en i onmen al echnologies as he ‘impac ’ (Jiakui e al., 2023;
U baniec e al., 2021).
4. Empi ical li e a u e e iew and hypo hesis de elopmen
Conside ing he signi ican in luence o majo economies’ policies on global sus ainabili y, i is necessa y
o conduc a mo e ho ough analysis o he ela ionship be ween he pe o mance o he banking sec o ,
en i onmen al egula ions, and g een inno a ion in G20 coun ies. Al hough p e ious s udies ha e p o-
ided aluable insigh s, he e a e s ill ce ain gaps ha he cu en esea ch aims o ill.
P io esea ch has p ima ily ocused on assessing he in luence o ac o s like sus ainabili y and inan-
cial de elopmen on echnological p og ess alone (Hsu e al., 2021; Liu e al., 2021). Howe e , his
app oach o e looks he po en ial eedback impac s o inno a ion on sus ainabili y ou comes, esul ing in
an incomple e unde s anding o he subjec . P e ious s udies ha e no ho oughly examined he po en-
ial bene i s o e ec i ely aligning economic, egula o y, and inno a ion s a egies (Cao e al., 2021; L
e al., 2021) despi e he ac ha he inancial, policy, and esea ch and de elopmen sec o s a e closely
in e connec ed in eali y. Fu he mo e, he p ac ice o conduc ing sepa a e examina ions o indi idual
elemen s is mo e common han conduc ing in eg a ed analyses ha un a el he in e ac ions be ween
banking, egula ions, and cu ing-edge solu ions (Hsu e al., 2021; Khan e al., 2022). A limi ed concen-
a ion hinde s he explo a ion o how maximizing ha mony be ween hese domains could esul in sig-
ni ican en i onmen al ad an ages, conside ing ha majo na ions ha e a disp opo iona e in luence on
global ma e s. Conduc ing ocused s udies on connec ions wi hin in luen ial G20 se ings could help
imp o e ou unde s anding by add essing hese empi ical limi a ions.
Resea che s ha e ho oughly examined he connec ions be ween inance, sus ainabili y, and inno a ion,
sugges ing ha ocused s a egies could esul in signi ican e u ns. Recen e idence sugges s ha imple-
men ing g een echnologies and alloca ing unds based on ca e ul selec ion can e ec i ely educe emis-
sions a bo h local and global le els. China, unde going apid indus ializa ion, has obse ed his (Anse
e al., 2020; Abid e al., 2022; Hsu e al., 2021; Khan e al., 2022; Kha ak e al., 2020). In addi ion, inno a ion
has a ans o ma i e impac by s imula ing imp o emen s in e iciency, ad ancemen s in clean p oduc ion,
and educ ions in ca bon emissions ha a e c ucial o bo h en i onmen al and economic ad ancemen
(Abid e al., 2022; Khan e al., 2022). Acco ding o ce ain analys s (Khan e al., 2022), obus socio-poli ical
s uc u es also help c ea e a o able condi ions o achie ing sus ainabili y goals.
14 D. F. HORDOFA
and possible endogenei y. O e all, hese p e-es ima ion es s alida e he use o ad anced econome ic
echniques in he empi ical analysis.
As a p ecu so o he panel da a analysis, Tables 6 and 7 epo he esul s o uni oo and coin e-
g a ion es s o examine he ime se ies p ope ies and es ablish a long- un ela ionship be ween he
a iables. The esul s o he Fishe uni oo es , p esen ed in Table 6, s ongly ejec he null hypo hesis
o non-s a iona i y ac oss all a iables a he 1% le el, indica ing he in eg a ion o he a iables o o de
one (I(1)). Gi en his conclusion, Table 7 hen epo s he Kao coin eg a ion es , which es ablishes coin e-
g a ion be ween he a iables based on he highly s a is ically signi ican es s a is ics. These
p e-es ima ion es s a e c ucial gi en ha he s udy examines ela ionships be ween en i onmen al sus-
ainabili y e o s, banking sec o pe o mance indica o s, and echnological inno a ion le els wi hin he
con ex o in luen ial G20 na ions o e 1990–2022. Valida ing ha he ime se ies a e I(1) and coin e-
g a ed p o ides s a is ical jus i ica ion o employing ad anced panel coin eg a ion echniques, such as
he IV-GMM es ima o , in subsequen empi ical analyses. This allows o igo ous quan i ica ion o di ec ,
in e ac ional, and ne impac s aligned wi h he key objec i es (Roodman, 2009).
Table 4. slope he e ogenei y es .
Del a adjus ed del a
2.376 4.388
0.017** 0.0000***
no e: he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks (**), and one as e isk (*) deno ing p
alues less han 0.01, 0.05, and 0.1, espec i ely.
Table 5. C oss-sec ional dependency es .
LinnoV LCo2 LgDPpc Roa Roe Bank_Z FsD MC D BP
Pesa an’s
es
18.342*** 8.454*** 61.376*** 7.141*** 7.253*** 4.208*** 34.675*** 5.661*** 31.849*** 6.237***
P ob. 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks (**), and one as e isk (*) deno ing p alues
less han 0.01, 0.05, and 0.1, espec i ely.
Table 6. Fishe uni oo es s.
Va iables in e se chi-squa ed p in e se no mal Z in e se logi L*
Modi ied in .
chi-squa ed Pm Decision
Roa 536.1756*** −20.1473*** −35.0238*** 58.9463*** i(1)
LCo2 535.0378*** −19.656*** −33.121*** 55.3469*** i(1)
LgDPpc 305.887*** −13.9056*** −19.3773*** 30.7287*** i(1)
LinnoV 516.5186*** −18.7337*** −32.667*** 54.8898*** i(1)
Boe 597.9978*** −21.6505*** −39.063*** 66.2321*** i(1)
Bank_Z 469.9287*** −18.967*** −30.698*** 51.139*** i(1)
FsD 382.1079*** −16.477*** −25.688*** 42.2143*** i(1)
MC 437.5797*** −17.453*** −29.399*** 48.941*** i(1)
D 485.1011*** −18.909*** −30.829*** 51.286*** i(1)
BP 249.3371*** −12.531*** −17.265*** 27.167*** i(1)
BP_LCo2 253.2115*** −12.635*** −17.532*** 27.6514*** i(1)
Roa_LCo2 478.9939*** −18.5272*** −31.282*** 52.2073 i(1)
Roe_LCo2 531.027*** −19.9166*** −34.685*** 58.3396*** i(1)
Bank_Z_LCo2 424.086*** −17.838*** −27.702*** 45.7364*** i(1)
FsD_LCo2 355.519*** −15.764*** −23.892*** 38.990*** i(1)
MC_LCo2 446.1540*** −17.576*** −29.966*** 49.981*** i(1)
no e: since da a a e unbalanced da a, we used Fishe es a di e ence; he as e isks indica e he le el o s a is ical signi icance, wi h h ee
as e isks (***), wo as e isks (**), and one as e isk (*) deno ing p alues less han 0.01, 0.05, and 0.1, espec i ely.
Table 7. Panel Kao coin eg a ion es s.
es s s a is ic p alue
Modi ied Dickey–Fulle 1.579 0.0572*
Dickey–Fulle 1.278 0.0000***
augmen ed Dickey–Fulle 2.8478 0.0022**
unadjus ed modi ied Dickey–Fulle 0.2807 0.0000***
unadjus ed Dickey–Fulle −0.1211 0.002**
he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks (**), and one as e isk (*) deno ing p alues
less han 0.01, 0.05, and 0.1, espec i ely.
COGENT BUSINESS & MANAGEMENT 15
6.3. Econome ic esul s o IV-GMM and in e p e a ion
Table 8 displays he indings ega ding he in luence o banking pe o mance and en i onmen al sus-
ainabili y on en i onmen al echnology inno a ion wi hin he G20 coun ies. The dependen a iable
in his s udy is echnological inno a ion (LINNOV), which is used as a me ic o assess he ex en o
en i onmen al echnology inno a ion. The econome ic esul s o e aluable insigh s in o he co ela-
ion be ween he pe o mance o he banking sec o , en i onmen al sus ainabili y, and he inno a ion
o en i onmen al echnology wi hin he G20 coun ies. The indings con i m he heo e ical and empi -
ical ounda ions discussed in he li e a u e e iew and p o ide suppo o he hypo heses de eloped
in his s udy. The da a p esen ed in Table 8 o e s aluable insigh s in o he in e play be ween banking
pe o mance, en i onmen al sus ainabili y, and echnological inno a ion wi hin he G20 na ions. In gen-
e al, he esul s suppo he hypo heses and heo e ical ounda ions. The esul s indica e ha he e is a
s ong and s a is ically signi ican ela ionship be ween en i onmen al sus ainabili y e o s and echno-
logical inno a ion, as e idenced by he posi i e and highly signi ican coe icien s o LCO2 in all spec-
i ica ions. This suppo s Hypo hesis 2, which sugges s ha highe sus ainabili y e o s ha e a posi i e
impac on echnological inno a ion. This is consis en wi h p e ious esea ch ha has ound ha policies
aimed a educing emissions s imula e he de elopmen o c ea i e solu ions (Cao e al., 2021; L e al.,
2021). Coun ies ha s eng hen sus ainabili y egula ions wi ness a co esponding esponse in e ms o
inno a ion.
In e ms o banking pe o mance, he majo i y o indica o s demons a e he an icipa ed nega i e
co ela ion, as s a ed in Hypo hesis 1. Speci ically, ROA, Bank_Z, FSD, and MC ha e a signi ican impac
on echnological p og ess. This implies ha banking sys ems ha pe o m well ha e a ce ain le el o
in luence in p omo ing inno a ion, which suppo s exis ing heo ies on he ole o inance in de elop-
men (C eel e al., 2015; Lee e al., 2016; L e al., 2021). Ne e heless, he ela ionship be ween ROEs
was no signi ican , de ia ing sligh ly om he p edic ed ou come. The indings sugges ha a 1%
inc ease in en i onmen al sus ainabili y (LCO2) is associa ed wi h an a e age inc ease in echnological
inno a ion (LINNOV) anging om 1.512% (column 6) o 1.887% (column 4), assuming all o he ac o s
emain cons an . This alida es he hypo hesis (3) ha implemen ing mo e s ingen policies o educe
Table 8. impac o banking pe o mances and en i onmen al sus ainabili y on echnological inno a ion (iV-gMM esul s,
Dep Va : LinnoV, o equa ion (7)).
(1) (2) (3) (4) (5) (6)
Va iables Di ec Roa Roe Bank_Z FsD MC
LCo2 1.626*** 1.626*** 1.655*** 1.887*** 1.586*** 1.512***
(0.051) (0.051) (0.05) (0.055) (0.045) (0.067)
BP −0.470*** −0.470*** −0.241 −0.360*** −0.245*** −0.459***
(0.082) (0.082) (0.160) (0.073) (0.052) (0.07)
LgDPpc 0.629*** 0.629*** 0.600*** 0.798*** 0.445*** 0.620***
(0.054) (0.054) (0.06) (0.06) (0.051) (0.05)
D −0.023*** −0.0234*** −0.023*** −0.025*** −0.0165*** −0.0236***
(0.004) (0.004) (0.004) (0.004) (0.004) (0.004)
Roa −0.16***
(0.091)
Roe −0.025
(0.012)
Bank_Z −0.071***
(0.01)
FsD 0.01***
(0.001)
MC 0.01***
(0.004)
Cons an −18.51*** −18.51*** −18.34*** −22.34*** −17.14*** −17.53***
(1.008) (1.008) (1.056) (1.024) (0.894) (1.087)
obse a ions 229 229 229 229 229 229
R-squa ed 0.849 0.849 0.851 0.874 0.885 0.854
Yea dummy Yes Yes Yes Yes Yes Yes
Hansen es 0.0458 0.0458 0.0507 0.0432 0.0228 0.0195
F-s a is ic 64.27*** 64.27*** 59.94*** 81.19*** 87.64*** 78.12***
no e. Robus s anda d e o s in pa en heses; he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks
(**), and one as e isk (*) deno ing p alues less han 0.01, 0.05, and 0.1, espec i ely. L = na u al loga i hm. sou ce: au ho s compu a ion using
s a a.
16 D. F. HORDOFA
emissions has a signi ican and a o able e ec on s imula ing new inno a ion. The esul s indica e ha
when o al bank asse s (Bank_Z) inc ease by 1%, echnological p og ess dec eases by an a e age o
0.071%, assuming all o he ac o s emain cons an . Simila ly, a 1% inc ease in he a io o inancial sys-
em deposi s o GDP (FSD) leads o an a e age inc ease in inno a ion o abou 0.01%, assuming all o he
ac o s emain cons an . These s a is ics o e nume ical in o ma ion on how imp o emen s in speci ic
aspec s o he banking sec o ’s s eng h can inc ease inno a i e e o s o de elop en i onmen al ech-
nologies, which suppo s hypo hesis 4. Meanwhile, he con ol a iables indica e ha a 1% inc ease in
GDP pe capi a esul s in an app oxima e 0.6–0.8% inc ease in echnological inno a ion. Ne e heless, an
inc ease o 1% in ade openness leads o a dec ease in inno a ion o app oxima ely 0.016–0.025% on
a e age, while keeping o he ac o s unchanged. The ob ained esul s align closely wi h he p edic ions
made by es ablished heo e ical amewo ks.
The con ol a iables exhibi ed he expec ed beha io , wi h GDP showing a posi i e co ela ion and
ade showing a nega i e co ela ion wi h inno a ion. The high R-squa ed alues, inclusion o yea dum-
mies, and posi i e diagnos ic es ou comes suppo he model speci ica ion and pa ame e eliabili y. In
gene al, u ilizing pe cen age change in e p e a ions e ec i ely communica es he ex en o ela ionships
be ween he key ac o s examined, as indica ed by he empi ical model esul s. An impo an con ibu-
ion is he ocused examina ion o hese dynamics wi hin G20 na ions, which ills gaps in p e ious anal-
yses ha had a b oade scope (E dogan e al., 2023; Liu e al., 2021; Y. Sun e al., 2022; P. Zhang e al.,
2023). The indings p o ide new empi ical e idence ha suppo s concep ual amewo ks on he connec-
ions be ween inancial sys ems, sus ainable policies, and he ou comes o inno a ion. Resul s a e used
o e alua e he echnological impac o sus ainabili y and how banking ac i i ies can in luence i in o de
o achie e impo an esea ch goals. In summa y, he empi ical analysis p o ides aluable insigh s in o
he ac o s ha con ibu e o p og ess owa d common sus ainabili y objec i es among his in luen ial
g oup o majo economies.
The second aim o his s udy was o examine he ela ionship be ween banking sec o pe o mance,
en i onmen al sus ainabili y, and echnological inno a ion in G20 coun ies (Table 9). Table 9 p esen s
he key indings om he IV-GMM echnique. Columns (1) h ough (6) analyze he linea model, which
is based on Equa ion (3). Columns (1) o (6) ep esen he pe o mance indica o s used by he banking
sec o , including BP (Banking Pe o mance), ROA (Re u n on Asse s), ROE (Re u n on Equi y), Bank_Z, MC
(Ma ke Capi aliza ion), and FSD (Financial S abili y Indica o ). Rows 3, 7, 9, 11, 13, and 15 p esen he
esul s om in e ac ion models de i ed om Equa ion (7).
Fu he mo e, Equa ion (8) links he calcula ion o he ‘ne e ec s’ shown in he bo om sec ion o he
able. The indings o e aluable insigh s in o how di e en banking indica o s mode a e he connec ion
be ween en i onmen al sus ainabili y and echnological p og ess in G20 na ions. We ound he majo i y
o in e ac ion e ms in he eg ession analysis o be s a is ically signi ican , suppo ing Hypo hesis 3,
which posi s he p esence o syne gis ic e ec s be ween hese ac o s. When analyzing he pe o mance
o e u n on asse s (ROA), he indings sugges ha a 1% imp o emen in en i onmen al sus ainabili y
esul s in a 3.321% dec ease in a e age inno a ion le els, conside ing he in luence o ROA. This complex
in e ac ion e ec con i ms heo ies abou how con ex ual ac o s in luence he ela ionship be ween sus-
ainable policies and echnological ou comes. A ne e ec o 5.44% indica es a signi ican posi i e impac
o an inc ease in inancial sys em deposi s on he ela ionship be ween sus ainabili y and inno a ion.
This p o ides empi ical e idence o suppo amewo ks ha highligh he impo ance o inancial dep h
and inclusion in p omo ing inno a i e solu ions.
This s udy’s speci ic ocus on he in luen ial G20 bloc, as opposed o p e ious esea ch ha examined
hese dynamics mo e gene ally, highligh s he signi icance o i s indings (Ak am e al., 2023; Azeem
e al., 2022; Ha eez e al., 2022; Hussain e al., 2023). The indings p o ide speci ic insigh s o p omo ing
coo dina ed p og ess owa ds common sus ainabili y and de elopmen goals wi hin his impo an
policy-se ing g oup. In gene al, measu ing in e ac ion pa e ns p o ides addi ional de ail and empi ical
e idence o assess he hypo hesized syne gies be ween banking ac i i ies and hei impac on en i on-
men al p og ess. The p edominan ly s a is ically signi ican esul s con ibu e o he alida ion o o e a -
ching heo e ical amewo ks ha conside he combined e ec s o economic, policy, and inno a ion
domains. Hypo hesis 3 posi ed ha he combina ion o banking sec o pe o mance and en i onmen al
sus ainabili y would esul in a mu ually bene icial impac on he de elopmen o en i onmen al
COGENT BUSINESS & MANAGEMENT 17
echnology inno a ion. The s a is ical analysis in Table 9 e ealed ha he majo i y o he in e ac ion
e ms be ween he banking pe o mance indica o s (BP, ROA, Bank_Z, FSD, and MC) and en i onmen al
sus ainabili y (LCO2) we e ound o be s a is ically signi ican . This s udy p o ides conc e e e idence sup-
po ing Hypo hesis 3, showing ha banking ac i i ies play a c ucial ole in in luencing he ela ionship
be ween sus ainabili y e o s and echnological p og ess in a mu ually bene icial way.
Hypo hesis 4 sugges ed ha , when aking in o accoun he pe o mance o he banking sec o , en i-
onmen al sus ainabili y would exe a ne posi i e impac on en i onmen al echnology inno a ion.
Table 9’s ne e ec s calcula ions p o ide e idence in suppo o his hypo hesis. We ound ha en i on-
men al sus ainabili y posi i ely in luences le els o echnological inno a ion a e accoun ing o a ious
aspec s o banking sys em quali y. The ne e ec s ange om 1.623% o 5.44%, depending on he spe-
ci ic condi ions. This implies ha implemen ing p og essi e policies can enhance inno a i e ac i i ies
among G20 coun ies in addi ion o any inancial assis ance hey may ecei e. Thus, he indings align
wi h Hypo hesis 4. To summa ize, he signi ican in e ac ion e ms and posi i e ne e ec s ound in Table
9 con i m Hypo heses 3 and 4. This shows ha banking suppo s he combined in luence o sus ainabil-
i y and inno a ion and ha sus ainabili y has a posi i e impac on echnology de elopmen , e en when
conside ing inancial cha ac e is ics.
In addi ion o he ou h objec i e, his s udy also sough o e alua e he o e all impac o en i on-
men al sus ainabili y on echnology inno a ion, aking in o conside a ion di e en aspec s o banking
sec o pe o mance. We conside ed he ollowing six a iables o achie e his goal: The s udy ound ha
Table 9. impac o banking pe o mances and en i onmen al sus ainabili y on echnological inno a ion (iV-gMM esul s,
Dep Va : LinnoV, o equa ion (8)).
(1) (2) (3) (4) (5) (6)
Va iables BP_LCo2 Roa_LCo2 Roe_LCo2 Bank_Z_LCo2 FsD_LCo2 MC_LCo2
LCo2 1.581*** 1.979*** 1.797*** 2.351*** 1.338*** 1.652***
(0.047) (0.088) (0.107) (0.111) (0.116) (0.171)
BP 4.698*** 4.698*** −0.394** −0.329*** −0.238*** −0.459***
(0.919) (0.919) (0.165) (0.052) (0.053) (0.069)
LgDPpc 0.572*** 0.572*** 0.568*** 0.826*** 0.442*** 0.619***
(0.052) (0.052) (0.06) (0.055) (0.051) (0.053)
D −0.023*** −0.023*** −0.0216*** −0.0291*** −0.0129*** −0.024***
(0.004) (0.004) (0.004) (0.004) (0.004) (0.004)
Roa na
Roa_LCo2 −0.415***
(0.077)
BP_LCo2 −0.412***
(0.076)
Roe 0.177
(0.108)
Roe_LCo2 −0.015*
(0.008)
Bank_Z 0.303***
(0.07)
Bank_Z_LCo2 −0.027***
(0.006)
FsD −0.057*
(0.033)
FsD_LCo2 0.005**
(0.003)
MC 0.034
(0.036)
MC_LCo2 −0.002
(0.003)
Cons an −17.37*** −17.37*** −20.09*** −28.58*** −13.90*** −19.30***
(0.878) (0.878) (1.453) (1.600) (1.644) (2.304)
ne e ec s 1.623% −3.321% −0.33% −3.191% 5.44% 0.12%
obse a ions 229 229 229 229 229 229
R-squa ed 0.872 0.872 0.856 0.885 0.886 0.855
Yea dummy Yes Yes Yes Yes Yes Yes
Hansen es 0.0319 0.0319 0.0068 0.0024 0.0472 0.0115
F-s a is ic 69.38*** 69.38*** 52.77*** 125.20*** 82.29*** 70.50***
no e: Robus s anda d e o s in pa en heses. he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks
(**), and one as e isk (*) deno ing p alues less han 0.01, 0.05, and 0.1, espec i ely. L = na u al loga i hm. sou ce: au ho s compu a ion using
s a a. he mean alues o he a iables a e: BP_LCo2 = -0.1016, Roa_LCo2 = 12.77, Roe_LCo2 = 141.75, Bank_Z _LCo2 = 205.24, FsD_
LCo2 = 819.61 and MC_LCo2 = 765.84.
18 D. F. HORDOFA
en i onmen al sus ainabili y has a posi i e impac on echnological inno a ion, as indica ed by a 1.623%
inc ease in he Banking Pe o mance Index (BP). This aligns wi h he esul s o p io s udies, which ha e
consis en ly demons a ed a posi i e co ela ion be ween en i onmen al sus ainabili y and inno a ion (K.
Chen e al., 2022; Saeed Meo & Ka im, 2022; Shai e al., 2021; Udemba & Yalçın aş, 2021) conduc ed an
empi ical s udy ha examined he ela ionship be ween en i onmen al sus ainabili y and e u n on
asse s (ROA) and ound a subs an ial ad e se impac o -3.321% on echnological inno a ion. This inding
con adic s p e ious s udies ha emphasize he posi i e impac o in eg a ing en i onmen al sus ainabil-
i y in o inancial pe o mance measu es o p omo e inno a ion (Lee e al., 2016; Zaka i e al., 2023).
The e a e se e al po en ial ac o s ha could explain his con adic o y inding. Fi s , he sample o
G20 coun ies and ime ame s udied he e di e om p e ious wo k, in oducing possibili ies o di e -
gen mac oeconomic o policy in luences on he associa ion o e ime. Second, ROA may no adequa ely
cap u e banking pe o mance in all con ex s, and i s connec ion o inno a ion could depend on o he
indus y o ma ke condi ions no ully accoun ed o (Saeed Meo & Ka im, 2022; Yi, 2023). Thi d, he
ue na u e o he in e ac ion could be indi ec ly nonlinea a he han di ec , a ying based on banking
sys em s eng h o echnological ma u i y le els ac oss coun ies. Fou h, ele an coun y-speci ic ac-
o s wi hin he G20 ha a e di icul o measu e, such as egula o y in ensi y o indus y composi ion,
may no be ully con olled o , biasing es ima es i omi ed om he analysis. Fu he nuanced empi i-
cal esea ch is wa an ed o gain a deepe unde s anding and po en ially econcile di e ences be ween
s udies.
Fu he mo e, he co ela ion be ween en i onmen al sus ainabili y and e u n on equi y (ROE) led o
a modes ly a o able ne impac o -0.33% on echnological inno a ion. This disco e y co obo a es p io
esea ch ha has simila ly documen ed a a o able co ela ion be ween e u n on equi y (ROE) and inno-
a ion (Klingenbe g e al., 2013). Ne e heless, he e ec size indica es ha he connec ion be ween ROE
and inno a ion is in ica e and necessi a es addi ional in es iga ion. In addi ion, an analysis o banking
s abili y (Bank_Z) e ealed a signi ican nega i e co ela ion o -3.191% be ween en i onmen al sus ain-
abili y and echnological inno a ion. This inding is consis en wi h p io esea ch ha has documen ed
a ying o inconsequen ial impac s o banking s abili y on inno a ion (Sha i e al., 2022). The e o e, he
indings suppo he cu en body o esea ch, sugges ing ha he s abili y o he banking sec o may
no ha e a subs an ial impac on echnological inno a ion.
Addi ionally, he co ela ion be ween en i onmen al sus ainabili y and inancial soundness (FSD) led
o a a o able o e all impac o 5.44% on echnological ad ancemen . Ul ima ely, he e was a sligh bu
a o able co ela ion o -0.12% be ween en i onmen al sus ainabili y and ma ke concen a ion (MC). This
disco e y is consis en wi h he ongoing dispu e in p io li e a u e conce ning he in luence o ma ke
concen a ion on inno a ion, which has p oduced inconclusi e esul s (Lu & Chesb ough, 2022). O e all,
his s udy success ully achie ed i s objec i e o examining he impac o en i onmen al sus ainabili y on
echnological inno a ion and di e en aspec s o banking sec o pe o mance. This esea ch seeks o
enhance comp ehension o hese dynamics wi hin a signi ican G20 con ex by empi ically examining
hypo heses aligned wi h he objec i es.
Upon e iewing ele an concep ual amewo ks in he li e a u e ega ding he pos ula ed ela ion-
ships be ween banking, sus ainabili y and inno a ion, one can con empla e how hese dynamics may
plausibly mani es wi hin he in luen ial G20 g oup o majo economies. I is easonable o hypo hesize
ha highe pe o ming banking sys ems wi hin G20 na ions would be be e posi ioned o acili a e
cu ing-edge en i onmen al echnology solu ions h ough inc eased access o inancing. A he same
ime, mo e s ingen sus ainabili y policies and emission educ ion a ge s adop ed by G20 go e nmen s
could s imula e aluable inno a ion as i ms seek oppo uni ies wi hin newly eme ging g een ma ke s.
Howe e , he ela ionships be ween hese domains a e likely mul idi ec ional. Success ul low-ca bon
inno a ions eme ging om G20 coun ies may hen mo i a e inc eased policy ambi ions a he na ional
le el o e ime (Abbas e al., 2023; Hasan & Du, 2023). Meanwhile, o wa d-looking banks ha p oac i ely
suppo pionee ing inno a o s wi hin hei G20 ma ke s could gain s a egic and epu a ional ad an-
ages. The e a e complex in e ac i e e ec s wo h explo ing empi ically. Gi en he G20 bloc’s disp opo -
iona e global economic weigh and leade ship in bo h adi ional indus ies and enewable sec o s,
unlocking syne gies ac oss inancial, policy and R&D sphe es wi hin hese con ex s may yield in aluable
lessons ha ipple ou wa d in e na ionally. A ocused analysis o pos ula ed links among banking,
COGENT BUSINESS & MANAGEMENT 19
sus ainabili y and echnological p og ess speci ically wi hin G20 se ings could he e o e p o ide compel-
ling policy insigh s.
Based on Equa ion (8), he ne e ec s o en i onmen al sus ainabili y, aking in o accoun banking
sec o pe o mances, a e as ollows: 1.623%, -3.321%, -0.33%, -3.191%, 5.44%, and 0.12%. The explici
calcula ions o hese ne e ec s a e as ollows:
∂
∂
= +− −
()
=
LINNOV
LCO21 581 0 412 0 106 1 623. ...* Bankingpe o manceiindex
()
∂
∂
= +−
()
= −
()
LINNOV
LCO21 979 0 415 12 77 3 321. .. .* ROA
∂
∂
= +−
()
= −
()
LINNOV
LCO21 797 0 015 141 75 0 33. ...* ROE
∂
∂
= +−
()
= −
()
LINNOV
LCO22 351 0 027 205 24 3 191
. ... _
* Bank Z
∂
∂
= +
()
=
()
LINNOV
LCO21 338 0 005 819 61 5 44. . ..* FSD
∂
∂
= +−
()
=
()
LINNOV
LCO21 652 0 002 765 84 0 12. . ..* MC
6.4. Endogenei y and obus ness es s
6.4.1. Endogenei y es
This s udy aims o examine he dynamics be ween banking sec o pe o mance, en i onmen al sus ain-
abili y, and en i onmen al echnology inno a ion in G20 coun ies. A co e me hodological conside a ion
is add essing po en ial endogenei y biases inhe en in models assessing hese ela ionships. Endogenei y
may a ise due o simul anei y, as he banking pe o mance measu es, ca bon emissions ep esen ing
en i onmen al sus ainabili y, and en i onmen al inno a ion ou comes could po en ially in luence each
o he concu en ly. Omi ed a iable bias is also a conce n i ele an d i e s o he ela ionships a e no
ully accoun ed o . Measu emen e o poses challenges, as p oxies like banking indexes and CO2 da a
may impe ec ly cap u e he unde lying heo e ical cons uc s. Addi ionally, including lagged inno a ion
le els o con ol o pe sis ence co ela es his p io dependen a iable wi h he e o e m. To help
add ess hese endogenei y issues speci ic o he a iables o in e es , he sys em GMM es ima o is
adop ed. I uses in e nal ins umen s in he o m o sui ably lagged banking pe o mance, ca bon emis-
sions, and con ol a iables o isola e exogenous a ia ion impac ing en i onmen al echnology inno a-
ion. A diagnos ic es was examining he alidi y o he GMM ins umen s and model speci ica ions. The
empi ical s a egy aims o p o ide mo e obus es ima es o he in luence ha banking sec o , en i on-
men al condi ions, and hei in e ac ion ha e on inno a ion ou comes acco ding o his s udy’s objec-
i es, while explici ly con olling o in icacies o endogenous ela ionships.
The indings displayed in Table 10 con ibu e o he alida ion o he ela ionships in es iga ed, aking
in o accoun conce ns ela ed o endogenei y. The s udy employed a igo ous me hodology ha add essed
po en ial endogenei y biases by using he Lewbel (2012) ins umen a ion app oach, and sys em GMM es i-
ma ion. Diagnos ic es esul s indica e he p ope speci ica ion o SYS-GMM. The A elleno Bond es shows
i s -o de bu no second-o de au oco ela ion in esiduals. Mo eo e , he Hansen es alida es he ins u-
men selec ion. The eg ession accoun s well o endogenei y based on diagnos ic ou comes.
Column (2) esul s indica e he es ima ed coe icien o ag icul u al socialized se ices emained pos-
i i e. A elleno Bond es esul s in column (1) show he AR(1) p alue is 0.018, below he 5% signi icance
20 D. F. HORDOFA
le el, while he AR(2) p alue is 0.942, abo e he 10% le el. This sugges s only i s -o de au oco ela ion,
wi h no second-o de o highe au oco ela ion in he esiduals. Mo eo e , he Hansen es p alue
exceeds 0.1, alida ing he ins umen selec ion. Reg ession esul s emained eliable a e accoun ing o
endogenei y. AR(1), AR(2) and Hansen es ou comes con i m alid ins umen s wi h no signi ican o e
i ing. No ably, he coe icien s emained consis en ly simila ac oss he di e en speci ica ions, which
inc eased con idence in he iden i ied pa e ns. This alignmen ein o ces p e ious esea ch ha has used
a ious me hods o add ess endogenei y, p o iding addi ional suppo o he c edibili y o he obse ed
e ec s (Z. Chen e al., 2022). In addi ion, diagnos ic es s p o ided eassu ing e i ica ion o accu a e
momen condi ions and uled ou any ins umen s. When analyzed in conjunc ion wi h wide empi ical
alida ion, he s udy o e s s ong e idence ha i s indings a e based on genuine cause-and-e ec
de e mina ions a he han coinciden al connec ions. The s abili y o ou comes in he p esence o endog-
enei y challenges is somewha consis en wi h he mixed indings epo ed in p e ious s udies (Liu e al.,
2021). In conclusion, by igo ously add essing endogenei y using es ed econome ic ools, he s udy
p o ides compelling e idence o he connec ions be ween banking, sus ainabili y, and inno a ion goals
among G20 coun ies. O e all, he igo o SYS-GMM, alongside o he models used, p o ides a obus
es ima ion o he in luence ha banking sec o pe o mance, en i onmen al condi ions, and hei in e -
ac ion ha e on en i onmen al inno a ion in G20 coun ies acco ding o he s udy objec i es. While lim-
i a ions exis , bes p ac ices a e ollowed o yield eliable esul s on he complex dynamics be ween
inancial, sus ainabili y, and echnology dimensions.
6.4.2. Robus ness es s
This s udy employed c oss-sec ional ime-se ies ully modi ied gene alized leas squa es eg ession o
conduc a obus ness analysis. Table 11 demons a es ha he FGLS speci ica ion suppo s he ela ion-
ships ound in p e ious models. Mo e p ecisely, he e was a consis en and s ong posi i e ela ionship
be ween en i onmen al sus ainabili y and inno a ion in all a eas, which aligns wi h he unde lying he-
o ies and p e ious esea ch. The majo i y o banking pe o mance me ics once again con i med he
ini ial hypo heses, as BP, Bank_Z, and MC consis en ly showed small nega i e e ec s ha we e in line
wi h p e ious indings. Financial deepening h ough inancial sys em deposi ed (FSD) has been iden i ied
as a signi ican ac o in d i ing p og ess, which complemen s amewo ks ha ocus on inclusion. The
con ol ac o s exhibi ed he an icipa ed beha io , he eby p o iding u he alida ion o he cons uc-
ion o he model. In addi ion, he diagnos ics e ealed ha he FGLS app oach e ec i ely deal wi h he
issues o he e oskedas ici y and au oco ela ion ha a e inhe en in panel da a. In e es ingly, e en when
Table 10. endogenei y es wi h Lewbel (2012) and sys em gMM.
(1) (2)
Va iables Lewbel (2012) sYs-gMM
L.LinnoV 0.795***
(0.0954)
LCo2 1.348*** 0.486
(0.0823) (0.300)
BP −0.575*** −0.0289
(0.0895) (0.0170)
LgDPpc 0.592*** −0.0128
(0.0509) (0.281)
D −0.0248*** 0.00298**
(0.00402) (0.00125)
Cons an −13.63*** −4.676*
(1.276) (2.544)
obse a ions 249 245
R-squa ed 0.800
numbe o c_id 22
Coun y Fe Yes
Con ol a iable Yes
aR (1) 0.018
aR (2) 0.942
Hansen es 0.640
F-s a is ic 820.25***
no e: s anda d e o s in pa en heses; he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks (**), and
one as e isk (*) deno ing p alues less han 0.01, 0.05, and 0.1, espec i ely.
COGENT BUSINESS & MANAGEMENT 21
using a di e en me hod o add ess s a is ical p oblems, he esul s we e consis en wi h he ini ial mod-
els and exis ing esea ch. This conco dance inc eases ce ain y in conclusions by ensu ing ha hey accu-
a ely ep esen genuine connec ions a he han being in luenced by es ima ion e o s. The indings,
along wi h p e ious e idence, p o ide compelling empi ical suppo o he ela ionships s udied among
G20 coun ies. Using FGLS eg ession as an addi ional obus ness es enhances he s eng h and depend-
abili y o in e ences made abou impo an dynamics.
7. Summa y and conclusion
This s udy p esen s new empi ical indings on he connec ions be ween en i onmen al sus ainabili y,
banking pe o mance, and echnological inno a ion in G20 coun ies. The indings o his s udy p o ide
aluable insigh s ha a e ele an o and expand upon he cu en body o esea ch. Th ough he appli-
ca ion o panel me hods, a ho ough analysis o di ec , in e ac i e, and ne e ec s was conduc ed, lead-
ing o he iden i ica ion o se e al signi ican indings ha ha e bo h heo e ical and p ac ical implica ions.
The indings p o ide a aluable unde s anding o he pa e ns o inno a ion in G20 na ions. Technological
p og ess consis en ly showed a s ong posi i e co ela ion wi h ca bon emissions ac oss all models.
Howe e , when examining speci ic banking me ics, i was disco e ed ha ce ain nuances eme ged. Fo
example, bank isk sco es de ia ed om he ypical nega i e co ela ion wi h o e all pe o mance. The
majo i y o in e ac ion e ec s we e consis en wi h he impac s o ca bon, al hough e u ns in luenced
ela ionships in a di e en manne . Examining he impac s om a ious pe spec i es p o ided dis inc
iewpoin s on banking. The indings alida e ha sus ainabili y consis en ly enhances inno a ion in a
di ec manne . Howe e , when examining disagg ega ed banking indica o s, i becomes appa en ha
he e a e in luences ha go beyond he o e all indexing. In oducing in e ac ions occasionally e e ses
p e ious index links. Examining he bene icial e ec s o sus ainabili y on inno a ion, pa icula ly in ela-
ion o inancial conside a ions, has u he emphasized i s ole as a ca alys .
As esea che s ocused on issues pe aining o inance, policy and inno a ion, his s udy examining link-
ages wi hin G20 con ex s makes an impo an con ibu ion owa ds suppo ing sus ainable de elopmen
goals. Upon e iewing he empi ical indings, a ew ecommenda ions eme ge o s eng hening in eg a ed
p og ess in hese sphe es going o wa d. Examining he bene icial e ec s o sus ainabili y on inno a ion,
pa icula ly in ela ion o inancial conside a ions, has u he emphasized i s ole as a ca alys . Policies
wi hin G20 na ions ha encou aged educ ions in emissions, such as manda o y sus ainabili y epo ing
and a ge s, had a signi ican impac in d i ing inno a i e solu ions, acco ding o his s udy’s indings.
Table 11. Robus ness analysis using c oss-sec ional ime-se ies FgLs eg ession (Dep. a : LinnoV).
(1) (2) (3) (4) (5) (6)
Va iables LinnoV LinnoV LinnoV LinnoV LinnoV LinnoV
BP −0.03 −0.03 −0.03 −0.03 −0.015 −0.03
(0.02) (0.02) (0.039) (0.021) (0.017) (0.018)
LCo2 1.742*** 1.742*** 1.757*** 1.736*** 1.551*** 1.684***
(0.06) (0.06) (0.052) (0.06) (0.08) (0.07)
LgDPpc 0.655*** 0.655*** 0.660*** 0.656*** 0.604*** 0.642***
(0.05) (0.05) (0.05) (0.05) (0.07) (0.06)
D −0.008*** −0.008*** −0.009*** −0.007*** −0.003 −0.06**
(0.004) (0.002) (0.003) (0.003) (0.002) (0.002)
o.Boa na
Boe −0.0001
(0.004)
Bank_Z −0.003
(0.006)
FsD 0.005***
(0.001)
MC 0.001
(0.002)
Cons an −20.40*** −20.40*** −20.61*** −20.33*** −17.78*** −19.59***
(0.942) (0.942) (0.891) (1.000) (1.157) (1.066)
obse a ions 249 249 249 249 249 249
numbe o c_id 22 22 22 22 22 22
no e: s anda d e o s in pa en heses. he as e isks indica e he le el o s a is ical signi icance, wi h h ee as e isks (***), wo as e isks (**), and
one as e isk (*) deno ing p alues less han 0.01, 0.05, and 0.1, espec i ely.
22 D. F. HORDOFA
I s e iden coope a ion ac oss sec o s is i al ye complex dynamics emain in need o unpacking.
Pilo collabo a ions a ge ing challenges wi hin indi idual G20 na ions may help un angle con ex -speci ic
ela ionships. Lessons lea ned om collabo a ing on place-based sus ainabili y ansi ions could hen
in o m b oade mul i-s akeholde pa ne ships. Policymake s should pu sue a comp ehensi e, mul idi-
mensional app oach when c a ing egula ions. Rules should aim o p omo e cus omized and inclusi e
g een inancing sys ems h ough ini ia i es like expanding dedica ed lending p og ams, inno a ion hubs
suppo ing SMEs, and p uden ma ke o e sigh .
Mains eaming sus ainabili y c i e ia wi hin bank go e nance and lending p ac ices may s eng hen
incen i es o inno a i e solu ions while boos ing long- e m inancial pe o mance long- e m. G adual
implemen a ion should balance isks wi h oppo uni ies. Lea ning exchanges be ween pionee s and lag-
ging G20 membe s could help su moun ba ie s. Businesses can gain compe i i e ad an ages by ac i ely
in ol ing s akeholde s o iden i y oppo uni ies associa ed wi h sus ainabili y. C oss-indus y collabo a-
ions also enhance he exchange o new ideas. O e all, he indings poin owa ds un apped po en ial i
G20-scale hinking shi s owa ds in eg a ed inno a ion de elopmen , inance ne wo ks, and s a egic
collabo a ions. Wi h esea ch insigh s, hese economies can pionee sus ainable sys ems change h ough
a ge ed policy expe imen s and mul i-s akeholde pa ne ships.
Despi e he limi a ions o his s udy, such as da a and ime pe iod cons ain s, measu emen chal-
lenges, and inabili y o ully add ess endogenei y, he indings p o ide aluable policy guidance o max-
imizing coope a ion be ween sus ainabili y and economic goals. The ongoing analysis, which ocuses on
speci ic G20 con ex s, is ad anced h ough collabo a ion be ween esea che s and policymake s. This
collabo a ion leads o p ac ical ac ions ha add ess sha ed eal-wo ld p io i ies. Howe e , he e is s ill
oom o imp o emen . Fu u e esea ch di ec ions include conduc ing quali a i e case s udies wi hin G20
na ions o help disen angle complex issue dynamics. As mo e longi udinal da a becomes a ailable,
expanding he scope and ime ames analyzed may e eal addi ional in icacies in he ela ionships o e
ime. Al e na i e econome ic echniques could also be e add ess endogenei y and po en ial nonlinea
in luences. Inco po a ing indus y-le el o local da a could expose condi ionally dis inc pa e ns. Su eys
and in e iews augmen ing s a is ical analyses wi h quali a i e inpu s may u he enhance unde s and-
ing. Compa a i e analyses in ol ing bo h G20 and non-G20 samples ha e he po en ial o shed ligh on
whe he sus ainabili y-economy linkages a y by de elopmen le el. Con inuous collabo a i e e o s
enhancing knowledgeable discussions be ween e idence and p ac ice a e impo an gi en he p essing
need o expedi e ans o ma ions wi hin impac ul G20 con ex s.
Acknowledgemen s
The au ho is esponsible o any e o s o omissions in he pape .
Au ho s’ con ibu ions
DFH conduc ed all aspec s o he s udy, including s udy design, da a collec ion, analysis, and manusc ip p epa a-
ion. DFH also e iewed and app o ed he inal manusc ip .
A ailabili y o da a and ma e ials
Upon eques , he da a and ma e ials will be made a ailable.
Disclosu e s a emen
The au ho s a es ha he e a e no compe ing in e es s o decla e.
Abou he au ho
De eje Fedasa Ho do a is a lec u e and esea che a Di e Dawa Uni e si y in E hiopia. He holds an MSc in
De elopmen Economics om Ambo Uni e si y and a BA in Economics om Wolki e Uni e si y. He is a ull membe
o he E hiopian Economic Associa ion. His esea ch in e es s include income inequali y, inancial de elopmen ,
COGENT BUSINESS & MANAGEMENT 23
de elopmen economics, and bank pe o mance. De eje has published six high-impac pape s in pee - e iewed jou -
nals such as Cogen Business & Managemen (Taylo & F ance), Heliyon, and Resea ch in Globaliza ion (Else ie ),
En i onmen , De elopmen and Sus ainabili y, and Disco e Global Socie y (Sp inge ). Two pape s explo ed he ela-
ionship be ween boa d di e si y, s uc u e, and bank pe o mance in E hiopia. One examined economic g ow h
d i e s. Two o he s in es iga ed income inequali y’s mode a ing ole on women’s economic empowe men and he
mul idimensional impac s o globaliza ion on economic g ow h. His ex ensi e empi ical wo k demons a es expe ise
in banking, mac oeconomics, and de elopmen domains.
Tools s a emen
The au ho used STATA 17 and ob ained a alid license o i .
ORCID
De eje Fedasa Ho do a h p://o cid.o g/0000-0001-8570-0222
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