The environmental sustainable development goals and economic growth: an empirical investigation of selected SAARC countries

Abstract

Environmental SDGs, or Sustainable Development Goals, are a set of targets outlined by the United Nations to address the most pressing environmental issues of our time. These goals aim to promote sustainable development by addressing issues such as climate change, biodiversity loss, and pollution. By achieving these goals, we can safeguard the planet's resources for future generations while improving the quality of life for people around the world. This research investigates the effect of environmental SDGs on economic growth (GDPGRO) at the disaggregated level, with two dimensions: economic and social goals. Using panel data from selected SAARC countries between 2000 and 2020, we employ a panel ARDL (PMG) technique. The finding of this study shows that increasing access to SDG 7 (affordable and clean energy), SDG 13 (climate action), and SSDGs (social Sustainable Development Goals) is negatively associated with potential decreases in economic growth which can occur in several ways, such as increased government spending and taxes, redistributive policies, and regulations that increase costs for businesses. Promoting SDG 11 (sustainable cities and communities) and SDG 12 (responsible consumption and production) can lead to long-term economic growth. SDG 15 (life below water) and ESDGs (economic Sustainable Development Goals) have a positive relationship with economic growth by conserving and sustainably using terrestrial ecosystems that can contribute to economic growth in the long term. ESDGs lead to increased income, improved living standards, and reduced poverty and inequality. Policies should prioritize disaster risk mitigation, align climate change goals with sustainable development goals, and promote sustainable production and consumption. This can be achieved by incentivizing cleaner energy sources and sustainable cities. To balance economic growth with sustainability, policies should encourage responsible business practices and sustainable industries.

Keywords: ARDL PMG; ESDGs; Economic growth; Environmental SDGs; SAARC countries; SSDGs.