Future‐Proofing Sustainability: Finance, Entrepreneurship, Innovation, and Policy Synergies in the <scp>E7</scp> Economies
ABSTRACT Achieving long‐term sustainability in emerging economies requires future‐oriented strategies that integrate financial systems, entrepreneurship, technological innovation, and regulatory policies. This study examines the dynamic interplay between financial development (FD), investment in green technology (INV), and environmental policy stringency (EPS) in driving sustainability outcomes across the E7 countries (Brazil, China, India, Indonesia, Mexico, Russia, and Turkey) from 2000 to 2022. Using the load capacity factor (LCF) as a comprehensive measure of ecological sustainability and applying the method of moments quantile regression (MMQR), the analysis captures heterogeneous effects across different levels of sustainability performance. The findings reveal that FD and INV significantly enhance sustainability, particularly in economies with weaker baseline performance, while EPS exerts a nonlinear influence, initially constraining but ultimately reinforcing sustainability once a regulatory threshold is surpassed. Moreover, interaction effects confirm that FD amplifies the benefits of green innovation and transition policies when aligned with regulatory frameworks. These results highlight the need for integrated policy designs that simultaneously strengthen financial markets, incentivize innovation, and enforce effective regulation. By offering novel empirical insights, this study contributes to the global discourse on future‐proofing sustainability and provides actionable guidance for achieving Sustainable Development Goals (SDGs) 7 and 13 in emerging economies.
Authors
- Na Luo (ORCID: https://orcid.org/0000-0002-4216-974X)
- Michal Sroka (ORCID: https://orcid.org/0009-0008-7889-9657)
Institutions
- Romanian-American University (RO)
- Jiangxi University of Technology (CN)
Publication Details
- Journal
- Sustainable Development
- Published
- 2025-10-26
- DOI
- https://doi.org/10.1002/sd.70302
- Primary Topic
- Energy, Environment, Economic Growth
- Type
- article
- Field-Weighted Citation Impact
- 0.00