Towards sustainability: Examining financial, economic, and societal determinants of environmental degradation

El Khoury, Rim; Min Du, Anna; Nasrallah, Nohade; Marashdeh, Hazem; Atayah, Osama F.

Abstract

We examine the determinants of environmental degradation, focusing on MENA economies from 1991 to 2020, with a particular focus on the role of sectoral composition. Specifically, we assess the contributions of the industrial, manufacturing, agricultural, and service sectors to GDP and their impact on environmental outcomes. Employing augmented mean group estimation, we evidence that technological advancements and renewable energy consumption significantly reduce environmental degradation, and that multinational corporations from developed countries transfer beneficial environmental practices to local firms in emerging regions. Results offer new insights into the impact of financial, economic, and societal factors on environmental outcomes.

Citation

El Khoury, R., Min Du, A., Nasrallah, N., Marashdeh, H., & Atayah, O. F. (2025). Towards sustainability: Examining financial, economic, and societal determinants of environmental degradation. Research in International Business and Finance, 73(Part A), Article 102557. https://doi.org/10.1016/j.ribaf.2024.102557

• Journal Article Type: Article
• Acceptance Date: Sep 3, 2024
• Online Publication Date: Sep 7, 2024
• Publication Date: 2025-01
• Deposit Date: Sep 9, 2024
• Publicly Available Date: Sep 9, 2024
• Print ISSN: 0275-5319
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 73
• Issue: Part A
• Article Number: 102557
• DOI: https://doi.org/10.1016/j.ribaf.2024.102557
• Keywords: CO2 Emissions, Ecological Footprint, Renewable Energy, Nonrenewable Energy, MENA