Measuring ECON–ESG interdependencies

Building on the economic, environmental, social, and governance (ECON–ESG) framework, this study develops a country-level multilayer network model to examine how environmental (ENV), social (SOC), governance (GOV), and economic (ECON) dimensions are structurally coupled across 33 OECD countries during 2002–2020. The main methodological contribution is to operationalize the ECON–ESG system as a four-layer multiplex network rather than as a composite index or a set of pairwise relationships. Intra-layer links are constructed from standardized country-level indicator dynamics using Pearson correlations, Benjamini–Hochberg false discovery rate correction, and a minimum-spanning-tree backbone. Cross-layer relationships are represented through a supra-adjacency matrix with an inter-layer coupling parameter Ω. The study then evaluates the resulting multiplex structure using modularity, algebraic connectivity, density, clustering, core–periphery structure, rich-club organization, multiplex centrality, participation coefficients, and robustness under simulated node removal. The results show that the GOV layer has the highest connectivity and resilience, whereas the ENV layer is comparatively fragmented and vulnerable. The SOC and ECON layers occupy an intermediate position, indicating moderate socioeconomic coupling. Sensitivity analysis identifies a stable moderate-coupling regime around Ω ≈ 0.8–1.0 and a correlation threshold of approximately 0.25–0.35. Overall, the study provides a network-based framework for diagnosing policy coherence, cross-layer coordination capacity, and systemic resilience in ECON–ESG systems, offering structural evidence relevant to Sustanable Development Goals (SDG) 17-oriented partnership and policy-coherence mechanisms.

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Publication Details

Journal
The Engineering Economist
Published
2026-10-13
DOI
https://doi.org/10.1080/0013791x.2026.2741058
Primary Topic
Sustainable Development and Environmental Policy
Type
article
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article

Measuring ECON–ESG interdependencies

Cem Işık, Ran Wu, Serdar Ongan, Huma F. Işık
The Engineering Economist
Sustainable Development and Environmental Policy
article

Measuring ECON–ESG interdependencies

Cem Işık, Ran Wu, Serdar Ongan, Huma F. Işık
article en

Abstract

Building on the economic, environmental, social, and governance (ECON–ESG) framework, this study develops a country-level multilayer network model to examine how environmental (ENV), social (SOC), governance (GOV), and economic (ECON) dimensions are structurally coupled across 33 OECD countries during 2002–2020. The main methodological contribution is to operationalize the ECON–ESG system as a four-layer multiplex network rather than as a composite index or a set of pairwise relationships. Intra-layer links are constructed from standardized country-level indicator dynamics using Pearson correlations, Benjamini–Hochberg false discovery rate correction, and a minimum-spanning-tree backbone. Cross-layer relationships are represented through a supra-adjacency matrix with an inter-layer coupling parameter Ω. The study then evaluates the resulting multiplex structure using modularity, algebraic connectivity, density, clustering, core–periphery structure, rich-club organization, multiplex centrality, participation coefficients, and robustness under simulated node removal. The results show that the GOV layer has the highest connectivity and resilience, whereas the ENV layer is comparatively fragmented and vulnerable. The SOC and ECON layers occupy an intermediate position, indicating moderate socioeconomic coupling. Sensitivity analysis identifies a stable moderate-coupling regime around Ω ≈ 0.8–1.0 and a correlation threshold of approximately 0.25–0.35. Overall, the study provides a network-based framework for diagnosing policy coherence, cross-layer coordination capacity, and systemic resilience in ECON–ESG systems, offering structural evidence relevant to Sustanable Development Goals (SDG) 17-oriented partnership and policy-coherence mechanisms.

The Engineering Economist
European University of Lefke (TR), Anadolu University (TR), Korea University (KR), Usak University (TR), Western Caspian University (AZ), Southeast University (BD), Korea University (JP), Economic Research Centre (AZ), Baku Eurasian University, Atatürk University (TR), Southeast University (CN), University of West Bohemia in Pilsen (CZ)
Openalex Percentile: Top 9%
Sustainable Development and Environmental Policy
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