Does tradeoff between financial and social indicators matters
in environmental consideration: evidence from G7 region
Authors: Nguyen Van Song & Nguyen Thi Minh Phuong & Thai Thi Kim Oanh & Do Huy Chien & Vu Quang Phuc3 & Muhammad Mohsin4
Environmental Science and Pollution Research
: 06 January 2021, : Pg 19911-19925
Publishing year: 1/2021
The study tries to discover the impact of financial and social indicators’ growth towards environmental considerations to
understand the drivers of economic growth and carbon dioxide emissions change in G7 countries. The DEA-like composite
index has been used to examine the tradeoff between financial and social indicator matters in environmental consideration by
using a multi-objective goal programming approach. The data from 2008 to 2018 is collected from G-7 countries. The results
from the DEA-like composite index reveals that there is a mixed condition of environmental sustainability in G-7 countries where
the USA is performing better and Japan is performing worse among the set of other countries. The further result shows that the
energy and fiscal indicators help to decrease the dangerous gas emissions. Divergent to that, the human and financial index
positively contributes to greenhouse gas emissions. Fostering sustainable development is essential to successfully reduce emissions, meet established objectives, and ensure steady development. The study provides valuable information for policymakers.
Energy security . Environmental sustainability . Low-carbon finance . Common weight DEA . Composite indicator