Role of Climate Policies and Environmental Regulations for Business Growth: Evidence from Sustainable Development Perspective

Authors

  • Muhammad Kamran Khan Qurtuba University of Science and Information Technology, Peshawar, Pakistan.
  • Irshad Ahmad Qurtuba University of Science and Information Technology, Peshawar, Pakistan.
  • Muhammad Sibt e Ali Zhengzhou University, Henan, Province, China.
  • Urooj Azhar Bahria University, Islamabad, Pakistan.

DOI:

https://doi.org/10.52131/joe.2024.0601.0202

Keywords:

Business Growth, Environmental Related Taxes and Revenue, Environmental Policy, Economic Growth, ARDL

Abstract

This study aims to use updated data sets for China from 1990 to 2022 to study the relationship between business growth and environmental factors and regulations such as environmental policies, taxes, green technologies, and environmental revenues. The first study confirmed that none of the variables used was static in I(II), while the ADF and PP unit root tests proved that all variables were static at the level, and confirmed the first difference in the ARDL model. Results demonstrate that environmental taxes stimulate business growth, a phenomenon explained by the Porter Hypothesis, suggesting that effective regulations related to environment can spur innovation and efficiency. The significant influence of environmental revenues further illuminates the potential of the green economy. The findings underscore the need for governments and businesses to adopt stringent environmental regulations, promote green technologies, and exploit the burgeoning opportunities in the green economy. The interplay between environmental factors and business growth not only fosters economic prosperity (SDG 8) but also aids in combatting climate change and promoting sustainable industrialization (SDG 9, 13), offering a roadmap towards a sustainable future.

Author Biographies

Muhammad Kamran Khan, Qurtuba University of Science and Information Technology, Peshawar, Pakistan.

Department of Management Sciences

Irshad Ahmad, Qurtuba University of Science and Information Technology, Peshawar, Pakistan.

Assistant Professor, Department of Management Sciences

Muhammad Sibt e Ali, Zhengzhou University, Henan, Province, China.

PhD Scholar, School of Business

Urooj Azhar, Bahria University, Islamabad, Pakistan.

Senior Lecturer, Management Studies Department, Bahria Business School

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Published

2024-03-20

How to Cite

Khan, M. K., Ahmad, I., Ali, M. S. e, & Azhar, U. (2024). Role of Climate Policies and Environmental Regulations for Business Growth: Evidence from Sustainable Development Perspective. IRASD Journal of Economics, 6(1), 199–214. https://doi.org/10.52131/joe.2024.0601.0202