ItemArticle

Green Growth Nexus: Analysing Environmental Performance and GDP Trends in OECD Economies

Title
Green Growth Nexus: Analysing Environmental Performance and GDP Trends in OECD Economies
Creator
Keerthana, K.; Pachiyappan, Sathish; Joseph, Augustine; Vellaiyan, Saravanan; Raj, V. John Paul
Description
Subject and Purpose of the Work: Over the past two decades, OECD countries such as Italy, Germany, France, and the United Kingdom have experienced consistent economic growth, averaging 2% annually in GDP. This upward trend has been driven by various factors, including government spending, investment rates, and favourable global conditions. Recently, environmental performance has emerged as a critical factor influencing economic development. This study aims to examine the relationship between environmental performance indicators and GDP growth in selected OECD countries, focusing on the growing emphasis on environmental sustainability. Materials and Methods: The analysis uses panel data from the OECD and World Bank, spanning 25 years (20002024), for four OECD nations. The study employs a Panel Autoregressive Distributed Lag (ARDL) model, which allows for the estimation of both short-run and long-run dynamics. GDP growth is the dependent variable, while the independent variables include environmental tax revenue (TAX), greenhouse gas emissions (EMI), air quality (QUA), government expenditure on environmental protection (EXP), and the share of renewable energy in total energy supply (REN). Results: The empirical findings indicate that TAX and EXP have minimal positive impact on GDP growth, suggesting potential inefficiencies in the allocation or effectiveness of environmental funds. In contrast, other indicators such as air quality and renewable energy share show a stronger link with economic growth. Conclusion: The study highlights the growing significance of environmental performance in shaping economic outcomes. It contributes to the sustainable development literature by demonstrating that targeted environmental efforts can positively influence long-term economic growth. 2025 K Keerthana et al., published by John Paul II University of Applied Sciences.
Source
Economic and Regional Studies / Studia Ekonomiczne i Regionalne;Volume;18;Issue;3;pp.256-269
Date
01-01-2025
Publisher
Sciendo
Subject
Air quality; Environmental tax revenues; GDP Growth; Government expenditure on Environmental protection; Greenhouse gas emissions; Renewable energy production
Coverage
Keerthana K., Christ University, School of Business and Management, India; Pachiyappan S., Christ University, School of Business and Management, India; Joseph A., Christ University, School of Business and Management, India; Vellaiyan S., Christ University, School of Business and Management, India; Raj V.J.P., Christ University, School of Business and Management, India
Rights
All Open Access; Gold Open Access; Green Open Access
Relation
ISSN: 20833725;
Format
online
Language
English
Type
Article

Citation

Keerthana, K.; Pachiyappan, Sathish; Joseph, Augustine; Vellaiyan, Saravanan; Raj, V. John Paul, “Green Growth Nexus: Analysing Environmental Performance and GDP Trends in OECD Economies,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 18, 2026, https://archives.christuniversity.in/items/show/23419.

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