GSSD/
Articles/
2611005557
  • Open Access
  • Article

Environmental Performance and Renewable Resources: The Impact on Economic Growth in the Emerging and Developing Economies

  • Francesco Scalamonti

Received: 10 October 2026 | Revised: 19 October 2026 | Accepted: 03 November 2026 | Published: 13 November 2026

Abstract

This study investigates the impacts of environmental performance measured by CO2 emission from industrial processes and renewable capacity measured by electricity production from renewable sources excluding hydroelectric on economic growth in emerging and developing economies. The analysis uses time-series data over the period 2000–2025 and three World Bank aggregates based on historical series of income levels (low, lower-middle, and upper-middle). Foreign direct investment inflows, trade openness, urbanization, and in an original way, the country policy and institutional assessment (CPIA) index—as a proxy for the quality of the institutional and business environment—were included as control variables. The results show that the growth effects of environmental performance, renewable capacity, and institutional quality differ markedly across income levels. Growth persistence emerges only in upper-middle-income economies, whereas in low- and lower-middle-income aggregates growth does not depend significantly on its previous levels. Carbon intensity from industrial processes is positively and significantly associated with growth only in the lower-middle-income group, indicating that carbon-based industrial production still fuels expansion at intermediate development stages. Renewable capacity does not exert significant growth effects in any group. Trade openness promotes growth in lower-middle- and upper-middle-income economies but not in low-income ones, foreign direct investment inflows are never significant, and urbanization hinders growth in the upper-middle-income group, where the CPIA index is marginally growth-enhancing. Overall, the findings confirm that the growth-environment nexus is strongly conditioned by income levels and institutional contexts. Growth remains carbon-dependent at lower-middle income levels, renewables do not deliver growth dividends, and sound institutions and openness support growth only beyond certain development thresholds. Decarbonization should therefore be paired with structural reforms, institutional strengthening, and staged integration into global markets to foster sustainable and inclusive growth.

References 

  • 1.

    Marzi, S.; Poljanšek, K.; Papadimitriou, E.; et al. Assessing future risk of humanitarian crises using projections of climate-related hazards, population, conflict and other socioeconomic variables within the INFORM framework. Big Earth Data 2025, 9, 676–713. https://doi.org/10.1080/20964471.2025.2535852.

  • 2.

    Safa, A.; Hilmi, N.; Dalmasso, D.A.J.; et al. Enhancing resilience: Strategies to mitigate climate change effects on vulnerable communities in the Southern and Eastern Mediterranean. J. Res. Econ. 2026, 54–70.

  • 3.

    Scalamonti, F. The Sustainable Development Index: An Integration of the Ecological Framework Considering the Governance-development Nexus. Highlights Sustain. 2024, 3, 354–373. https://doi.org/10.54175/hsustain3040020.

  • 4.

    UNCTAD. Transforming Our World: The 2030 Agenda for Sustainable Development. In United Nations General Assembly Resolution; No. 70/1; UNCTAD: Geneva, Switzerland 2015; pp. 1–41.

  • 5.

    Scalamonti, F. The Impact of FDI on Economic Growth in Emerging and Developing Economies: The Role of Institutional Quality and Technology Diffusion. Transnatl. Supply Chain. Res. 2026, 2, 24–45. https://doi.org/10.65773/tscr.2.1.92.

  • 6.

    Scalamonti, F. Societal change and progress in an evolving world: Beyond the maximization logic and to the adoption of satisficing choices for sustainable development. Sustain. Econ. 2025, 3, 1847. https://doi.org/10.62617/se1847.

  • 7.

    Scalamonti, F. Bounded Rationality, Societal Progress, Inclusive Institutions: Sustainability and Satisficing Choice. SSRN-Working Paper Series 2026, 6120326, 1–35. https://doi.org/10.2139/ssrn.6120326.

  • 8.

    Parello, C.P.; Venturini, F. Knowledge gaps, convergence, and growth. J. Econ. Geogr. 2026, 26, 461–484. https://doi.org/10.1093/jeg/lbaf066.

  • 9.

    Huber, J. Towards industrial ecology: Sustainable development as a concept of ecological modernization. J. Environ. Policy Plan. 2000, 2, 269–285. https://doi.org/10.1080/714038561.

  • 10.

    McNeill, D. Global Cities and Urban Theory; SAGE Publications Ltd.: Thousand Oaks, CA, USA, 2017. https://doi.org/10.4135/9781473921870.

  • 11.

    Belderbos, R.; Castellani, D.; Du, H.S.; et al. Internal versus external agglomeration advantages in investment location choice: The role of global cities’ international connectivity. J. Int. Bus. Stud. 2024, 55, 745–763. https://doi.org/10.1057/s41267-024-00686-7.

  • 12.

    Porter, M.E.; Linde, C.V.D. Toward a New Conception of the Environment-Competitiveness Relationship. J. Econ. Perspect. 1995, 9, 97–118. https://doi.org/10.1257/jep.9.4.97.

  • 13.

    Schumpeter, J.A. Capitalism, Socialism and Democracy; Harper: New York, NY, USA, 1942.

  • 14.

    Biala, M.I.; Ibrahim, A.Q.; Ibrahim, W.O. Governance-conditioned effects of climate finance on environmental sustainability in Sub-Saharan Africa. Acad. Green Energy 2026, 3, 1–13. https://doi.org/10.20935/acadenergy8299.

  • 15.

    Atalla, T.; Bigerna, S.; Bollino, C.A. A comparison of Alternative Programs for Climate Policies. KAPSARC-Res. Pap. 2018, 1–35. https://doi.org/10.30573/ks--2018-dp48.

  • 16.

    Yu, J.; Tang, Y.M.; Chau, K.Y.; et al. Role of solar-based renewable energy in mitigating CO2 emissions: Evidence from quantile-on-quantile estimation. Renew. Energy 2022, 182, 216–226. https://doi.org/10.1016/j.renene.2021.10.002.

  • 17.

    Khezri, M.; Heshmati, A.; Khodaei, M. Environmental implications of economic complexity and its role in determining how renewable energies affect CO2 emissions. Appl. Energy 2022, 306, 117948. https://doi.org/10.1016/j.apenergy.2021.117948.

  • 18.

    Mostafaeipour, A.; Bidokhti, A.; Fakhrzad, M.B.; et al. A new model for the use of renewable electricity to reduce carbon dioxide emissions. Energy 2022, 238, 121602. https://doi.org/10.1016/j.energy.2021.121602.

  • 19.

    Marelli, E.; Signorelli, M. Economic Growth and Structural Features of Transition; Palgrave: London, UK, 2010.

  • 20.

    Cornia, G.A.; Bertoli, S.; Bortolotti, L.; et al. La Politica Economica Dei Paesi in via Di Sviluppo; Firenze University Press: Florence, Italy, 2022. https://doi.org/10.36253/978-88-5518-522-6.

  • 21.

    Marelli, E.; Signorelli, M. Economic Policy: Policies in Times of Great Shocks and Geopolitical Instabilities (It.), 4th ed.; Giappichelli: Turin, Italy, 2025.

  • 22.

    Kraft, J.; Kraft, A. Interfuel substitution and energy consumption in the industrial sector. Appl. Energy 1980, 6, 275–288. https://doi.org/10.1016/0306-2619(80)90018-5.

  • 23.

    Apergis, N.; Payne, J.E. Renewable energy consumption and economic growth: Evidence from a panel of OECD countries. Energy Policy 2010, 38, 656–660. https://doi.org/10.1016/j.enpol.2009.09.002.

  • 24.

    Ozturk, I. A literature survey on energy–growth nexus. Energy Policy 2010, 38, 340–349. https://doi.org/10.1016/j.enpol.2009.09.024.

  • 25.

    Solow, R.M. A Contribution to the Theory of Economic Growth. Q. J. Econ. 1956, 70, 65. https://doi.org/10.2307/1884513.

  • 26.

    Lucas, R.E. On the mechanics of economic development. J. Monet. Econ. 1988, 22, 3–42. https://doi.org/10.1016/0304-3932(88)90168-7.

  • 27.

    Romer, P.M. Endogenous Technological Change. J. Political Econ. 1990, 98, S71–S102. https://doi.org/10.1086/261725.

  • 28.

    Aghion, P.; Howitt, P. A Model of Growth Through Creative Destruction. Econometrica 1992, 60, 323. https://doi.org/10.2307/2951599.

  • 29.

    Barro, R.J. Economic Growth in a Cross Section of Countries. Q. J. Econ. 1991, 106, 407. https://doi.org/10.2307/2937943.

  • 30.

    Borensztein, E.; De Gregorio, J.; Lee, J.W. How does foreign direct investment affect economic growth? J. Int. Econ. 1998, 45, 115–135. https://doi.org/10.1016/s0022-1996(97)00033-0.

  • 31.

    Alfaro, L.; Chanda, A.; Kalemli-Ozcan, S.; et al. FDI and economic growth: The role of local financial markets. J. Int. Econ. 2004, 64, 89–112. https://doi.org/10.1016/s0022-1996(03)00081-3.

  • 32.

    Niebel, T. ICT and economic growth—Comparing developing, emerging and developed countries. World Dev. 2018, 104, 197–211. https://doi.org/10.1016/j.worlddev.2017.11.024.

  • 33.

    Van Krevel, C. Why Cross-Country Convergence of Income is Unsustainable: Evidence from Inclusive Wealth in 140 Countries. Soc. Indic. Res. 2023, 170, 847–875. https://doi.org/10.1007/s11205-023-03218-2.

  • 34.

    North, D.C. Institutions, Institutional Change, and Economic Performance; Cambridge University Press: Cambridge, MA, USA, 1990.

  • 35.

    Knack, S.; Keefer, P. Institutions and Economic Performance: Cross-Country Tests Using Alternative Institutional Measures. Econ. Politics 1995, 7, 207–227. https://doi.org/10.1111/j.1468-0343.1995.tb00111.x.

  • 36.

    Kaufmann, D.; Kraay, A.; Zoido-Lobaton, P. Governance Matters; The World Bank: Washington, DC, USA, 1999. https://doi.org/10.1596/1813-9450-2196.

  • 37.

    Kaufmann, D.; Kraay, A. Growth without Governance. Economía 2002, 3, 169–229. https://doi.org/10.1353/eco.2002.0016.

  • 38.

    Acemoglu, D.; Johnson, S.; Robinson, J.A. The Colonial Origins of Comparative Development: An Empirical Investigation. Am. Econ. Rev. 2001, 91, 1369–1401. https://doi.org/10.1257/aer.91.5.1369.

  • 39.

    Aghion, P. Innovation, growth, and environmental challenges: Schumpeterian insights into climate change and green technologies. In Implications of Climate Change and Ecosystem Services Degradation for Macroeconomic and Financial Stability; Banco Central de Chile: Santiago, Chile, 2025; pp. 101–120.

  • 40.

    Acemoglu, D.; Robinson, J. The Role of Institutions in Growth and Development. Rev. Econ. Institutions 2010, 1, 1–33. https://doi.org/10.5202/rei.v1i2.14.

  • 41.

    Acemoglu, D.; Robinson, J.A. Why Nations Fail: The Origins of Power, Prosperity, and Poverty; Crown: New York, NY, USA, 2013.

  • 42.

    Acemoglu, D.; Robinson, J.A. Rents and economic development: The perspective of Why Nations Fail. Public Choice 2019, 181, 13–28. https://doi.org/10.1007/s11127-019-00645-z.

  • 43.

    Andrews, M.; Pritchett, L.; Woolcock, M. Building State Capability: Evidence, Analysis, Action; Oxford University Press: Oxford, UK, 2017.

  • 44.

    Acemoglu, D.; Naidu, S.; Restrepo, P.; et al. Democracy Does Cause Growth. J. Political Econ. 2019, 127, 47–100. https://doi.org/10.1086/700936.

  • 45.

    Acemoglu, D.; Robinson, J.A. Weak, Despotic, or Inclusive? How State Type Emerges from State versus Civil Society Competition. Am. Political Sci. Rev. 2023, 117, 407–420. https://doi.org/10.1017/s0003055422000740.

  • 46.

    Paldam, M. Income, growth, and democracy looking for the main causal directions in the nexus. Eur. J. Political Econ. 2024, 83, 102532. https://doi.org/10.1016/j.ejpoleco.2024.102532.

  • 47.

    Acemoglu, D. Nobel Lecture: Institutions, Technology, and Prosperity. Am. Econ. Rev. 2025, 115, 1709–1748. https://doi.org/10.1257/aer.115.6.1709.

  • 48.

    Fioramonti, L.; Coscieme, L.; Mortensen, L.F. From gross domestic product to wellbeing: How alternative indicators can help connect the new economy with the Sustainable Development Goals. Anthr. Rev. 2019, 6, 207–222. https://doi.org/10.1177/2053019619869947.

  • 49.

    Tiba, S.; Belaid, F. Modeling The Nexus between Sustainable Development and Renewable Energy: The African Perspectives. J. Econ. Surv. 2021, 35, 307–329. https://doi.org/10.1111/joes.12401.

  • 50.

    Bollino, C.A.; Galeotti, M. Multivariate Convergence toward the SDGs 2, 6 and 7: An Empirical Analysis of World and MENA Region Countries. Energy J. 2024, 45, 43–62. https://doi.org/10.5547/01956574.45.si1.cbol.

  • 51.

    Fikru, M.G.; Belaïd, F.; Ma, H. Carbon capture and renewable energy policies: Could policy harmonization be a puzzle piece to solve the electricity crisis? Energy Econ. 2024, 136, 107753. https://doi.org/10.1016/j.eneco.2024.107753.

  • 52.

    Moreno-Reyes, E.; Deriu, S.; Signorelli, M.; et al. Multisectoral tools for environmental targets: A sustainable economic change for Italy. J. Econ. Interact. Coord. 2026, 21, 873–907. https://doi.org/10.1007/s11403-026-00479-1.

  • 53.

    IRENA. World Energy Transitions; International Renewable Energy Agency: Abu Dhabi, The United Arab Emirates, 2023.

  • 54.

    Zhang, S.; Sovacool, B.K.; Wei, C. Do clean energy transitions enhance global energy security? A comparative analysis of trends and tradeoffs across eight major economies, 1990–2020. Energy Policy 2026, 212, 115164. https://doi.org/10.1016/j.enpol.2026.115164.

  • 55.

    Kilinc-Ata, N.; Xavier, B.; Bhat, M.A. Decoupling economic growth and CO2 emissions: A geopolitical comparison of the EU and GCC energy transitions. Qual. Quant. 2026, 60, 7377–7406. https://doi.org/10.1007/s11135-026-02572-w.

  • 56.

    Halkos, G.E.; Gkampoura, E.C. Examining the Linkages among Carbon Dioxide Emissions, Electricity Production and Economic Growth in Different Income Levels. Energies 2021, 14, 1682. https://doi.org/10.3390/en14061682.

  • 57.

    Li, M.; Zhang, Y.; Fan, Z.; et al. Evaluation and Research on the Level of Inclusive Green Growth in Asia-Pacific Region. Sustainability 2021, 13, 7482. https://doi.org/10.3390/su13137482.

  • 58.

    Namahoro, J.P.; Wu, Q.; Xiao, H.; et al. The Impact of Renewable Energy, Economic and Population Growth on CO2 Emissions in the East African Region: Evidence from Common Correlated Effect Means Group and Asymmetric Analysis. Energies 2021, 14, 312. https://doi.org/10.3390/en14020312.

  • 59.

    Qudrat-Ullah, H.; Nevo, C.M. Analysis of the Dynamic Relationships among Renewable Energy Consumption, Economic Growth, Financial Development, and Carbon Dioxide Emission in Five Sub-Saharan African Countries. Energies 2022, 15, 5953. https://doi.org/10.3390/en15165953.

  • 60.

    Yang, C.; Namahoro, J.P.; Wu, Q.; et al. Renewable and Non-Renewable Energy Consumption on Economic Growth: Evidence from Asymmetric Analysis across Countries Connected to Eastern Africa Power Pool. Sustainability 2022, 14, 16735. https://doi.org/10.3390/su142416735.

  • 61.

    Konyeaso, A.W.; Eregha, P.B.; Vo, X.V. Unbundling the dynamic impact of renewable energy and financial development on real per capita growth in African countries. Environ. Sci. Pollut. Res. 2023, 30, 899–916. https://doi.org/10.1007/s11356-022-22109-6.

  • 62.

    Teklie, D.K.; Yağmur, M.H. The Role of Green Innovation, Renewable Energy, and Institutional Quality in Promoting Green Growth: Evidence from African Countries. Sustainability 2024, 16, 6166. https://doi.org/10.3390/su16146166.

  • 63.

    Gershon, O.; Asafo, J.K.; Sowah, J.N.; et al. Persistence of emissions in selected African countries: Energy consumption and population growth dynamics. Energy Strategy Rev. 2025, 57, 101628. https://doi.org/10.1016/j.esr.2024.101628.

  • 64.

    Osman, A.; Afjal, M.; Alharthi, M.; et al. Green growth dynamics: Unraveling the complex role of financial development and natural resources in shaping renewable energy in Sub-Saharan Africa. Humanit. Soc. Sci. Commun. 2025, 12, 64. https://doi.org/10.1057/s41599-025-04364-3.

  • 65.

    Hunjra, A.I.; Bouri, E.; Azam, M.; et al. Economic growth and environmental sustainability in developing economies. Res. Int. Bus. Financ. 2024, 70, 102341. https://doi.org/10.1016/j.ribaf.2024.102341.

  • 66.

    Nolan, B. The Median Versus Inequality-Adjusted GNI as Core Indicator of ‘Ordinary’ Household Living Standards in Rich Countries. Soc. Indic. Res. 2020, 150, 569–585. https://doi.org/10.1007/s11205-020-02311-0.

  • 67.

    Waite, D.; Whyte, B.; Muirie, J. From an agreeable policy label to a practical policy framework: Inclusive growth in city-regions. Eur. Plan. Stud. 2020, 28, 1812–1835. https://doi.org/10.1080/09654313.2019.1691507.

  • 68.

    Barua, S. Green growth and energy transition: An assessment of selected emerging economies. In Energy-Growth Nexus in an Era of Globalization; Elsevier: Amsterdam, The Netherlands, 2021; pp. 323–352.

  • 69.

    Nupehewa, S.; Liyanage, S.; Polkotuwa, D.; et al. More than just investment: Causality analysis between foreign direct investment and economic growth. PLoS ONE 2022, 17, e0276621. https://doi.org/10.1371/journal.pone.0276621.

  • 70.

    Scalamonti, F. The foreign investments-growth nexus in underdeveloped countries: The state-of-art of research analysing a selected and recent empirical literature (2020–2022). Technol. Forecast. Soc. Chang. 2024, 198, 122933. https://doi.org/10.1016/j.techfore.2023.122933.

  • 71.

    Arthur, B.; Saha, M.; Sarpong, F.A.; et al. Unlocking Africa’s potential: The transformative power of foreign direct investment for sustainable development. Heliyon 2024, 10, e26507. https://doi.org/10.1016/j.heliyon.2024.e26507.

  • 72.

    Nam, H.J.; Ryu, D. Does trade openness promote economic growth in developing countries? J. Int. Financ. Mark. Institutions Money 2024, 93, 101985. https://doi.org/10.1016/j.intfin.2024.101985.

  • 73.

    Monyela, M.N.; Saba, C.S. Trade openness, economic growth and economic development nexus in South Africa: A pre- and post-BRICS analysis. Humanit. Soc. Sci. Commun. 2024, 11, 1–18. https://doi.org/10.1057/s41599-024-03604-2.

  • 74.

    Scalamonti, F. A Proper Measurement of the Countries’ Governance Climate with an Overall Composite Index. Glob. J. Emerg. Mark. Econ. 2026, 18, 174–185. https://doi.org/10.1177/09749101251372560.

  • 75.

    Ozturk, N.S. Trade openness, renewable energy and environmental performance: Evidence from Africa. Asian Dev. Policy Rev. 2026, 14, 139–155. https://doi.org/10.55493/5008.v14i1.5877.

  • 76.

    Le Quéré, C.; Jackson, R.B.; Jones, M.W.; et al. Temporary reduction in daily global CO2 emissions during the COVID-19 forced confinement. Nat. Clim. Chang. 2020, 10, 647–653. https://doi.org/10.1038/s41558-020-0797-x.

  • 77.

    UNCTAD. World Investment Report: Investing in Sustainable Recovery; United Nations Conference on Trade and Development: Geneva, Switzerland, 2021.

  • 78.

    Andres, R.J.; Boden, T.A.; Bréon, F.M.; et al. A synthesis of carbon dioxide emissions from fossil-fuel combustion. Biogeosciences 2012, 9, 1845–1871. https://doi.org/10.5194/bg-9-1845-2012.

  • 79.

    Jerven, M. Poor Numbers: How We Are Misled by African Development Statistics and What to Do about It; Cornell University Press: Ithaca, NY, USA, 2013.

  • 80.

    Johnson, S.; Larson, W.; Papageorgiou, C.; et al. Is newer better? Penn World Table Revisions and their impact on growth estimates. J. Monet. Econ. 2013, 60, 255–274. https://doi.org/10.1016/j.jmoneco.2012.10.022.

  • 81.

    Crippa, M.; Guizzardi, D.; Pagani, F.; et al. Insights into the spatial distribution of global, national, and subnational greenhouse gas emissions in the Emissions Database for Global Atmospheric Research (EDGAR v8.0). Earth Syst. Sci. Data 2024, 16, 2811–2830. https://doi.org/10.5194/essd-16-2811-2024.

  • 82.

    Leach, G. The energy transition. Energy Policy 1992, 20, 116–123. https://doi.org/10.1016/0301-4215(92)90105-b.

  • 83.

    Masera, O.R.; Saatkamp, B.D.; Kammen, D.M. From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model. World Dev. 2000, 28, 2083–2103. https://doi.org/10.1016/s0305-750x(00)00076-0.

  • 84.

    Argentiero, A.; Bollino, C.A.; Micheli, S.; et al. Renewable energy sources policies in a Bayesian DSGE model. Renew. Energy 2018, 120, 60–68. https://doi.org/10.1016/j.renene.2017.12.057.

  • 85.

    Bigerna, S.; Gattone, T.; Magazzino, C. Fossil lock-in, resource dependence, and energy transition policy in the Global South. Energy Policy 2026, 216, 115281. https://doi.org/10.1016/j.enpol.2026.115281.

  • 86.

    Kilinc, N.; Proskuryakova, L.N. Assessing the Influence of Innovation and Digitalization on Carbon Footprint Across the Middle East, North Africa, and South Caucasus Regions. Nat. Resour. Forum 2026, 1–18. https://doi.org/10.1111/1477-8947.70068.

  • 87.

    Bigerna, S.; Micheli, S. Is there worldwide convergence toward the SDGs? J. Policy Model. 2025, 47, 97–117. https://doi.org/10.1016/j.jpolmod.2024.12.002.

  • 88.

    Cinti, A.; Amadei, A.; Bigerna, S.; et al. Behavioural Economics in Business Networks: A Sustainability Compliance and Innovation Case. Ital. Econ. J. 2026, 12, 1889–1922. https://doi.org/10.1007/s40797-026-00367-4.

  • 89.

    Bigerna, S.; Bollino, C.A.; Micheli, S. The Sustainability of Renewable Energy in Europe To 2050; Springer: Berlin, Germany, 2025.

  • 90.

    Castellani, D.; Marin, G.; Montresor, S.; et al. Greenfield foreign direct investments and regional environmental technologies. Res. Policy 2022, 51, 104405. https://doi.org/10.1016/j.respol.2021.104405.

  • 91.

    Bello, M.; Castellani, D.; Damioli, G.; et al. Innovative Foreign Direct Investments and the Knowledge Sources for Green and Digital Inventions: A Patent-Based Analysis. In Inequality, Geography and Global Value Chains; Springer: Cham, Switzerland, 2023; pp. 161–188. https://doi.org/10.1007/978-3-031-24090-4_7.

  • 92.

    Turzo, T.; Chirieleison, C. Humanistic capitalism and inclusive leadership: Insights from Brunello Cucinelli. In Cases on Inclusive Leadership; Edward Elgar Publishing: Cheltenham, UK, 2026; pp. 20–36. https://doi.org/10.4337/9781035342020.00013.

  • 93.

    Paoli, M. Management of Complexity, Complexity of Management (It.); Angeli: Milan, Italy, 2006.

  • 94.

    Brusoni, S.; Prencipe, A. The Organization of Innovation in Ecosystems: Problem Framing, Problem Solving, and Patterns of Coupling. In Collaboration and Competition in Business Ecosystems; Emerald Group Publishing Limited: Leeds, UK, 2013; pp. 167–194. https://doi.org/10.1108/s0742-3322(2013)0000030009.

  • 95.

    Allal-Chérif, O.; Simón-Moya, V.; Ballester, A.C.C. Intelligent purchasing: How artificial intelligence can redefine the purchasing function. J. Bus. Res. 2021, 124, 69–76. https://doi.org/10.1016/j.jbusres.2020.11.050.

  • 96.

    Schönberger, M. Artificial Intelligence for Small and Medium-Sized Enterprises: Identifying Key Applications and Challenges. J. Bus. Manag. 2023, 21, 89–112. https://doi.org/10.32025/jbm23004.

  • 97.

    Wang, S.; Zhang, H. Promoting sustainable development goals through generative artificial intelligence in the digital supply chain: Insights from Chinese tourism SMEs. Sustain. Dev. 2025, 33, 1231–1248. https://doi.org/10.1002/sd.3152.

  • 98.

    Grashof, N.; Kopka, A. Artificial intelligence and radical innovation: An opportunity for all companies? Small Bus. Econ. 2023, 61, 771–797. https://doi.org/10.1007/s11187-022-00698-3.

  • 99.

    Shaik, A.S.; Alshibani, S.M.; Jain, G.; et al. Artificial intelligence (AI)-driven strategic business model innovations in small- and medium-sized enterprises. Insights on technological and strategic enablers for carbon neutral businesses. Bus. Strategy Environ. 2024, 33, 2731–2751. https://doi.org/10.1002/bse.3617.

  • 100.

    Kopka, A.; Fornahl, D. Artificial intelligence and firm growth—catch-up processes of SMEs through integrating AI into their knowledge bases. Small Bus. Econ. 2024, 62, 63–85. https://doi.org/10.1007/s11187-023-00754-6.

  • 101.

    Ruiz-Real, J.L.; Uribe-Toril, J.; Torres, J.A.; et al. Artificial intelligence in business and economics research: Trends and future. J. Bus. Econ. Manag. 2020, 22, 98–117. https://doi.org/10.3846/jbem.2020.13641.

  • 102.

    Arranz, C.F.A.; Arroyabe, M.F.; Arranz, N.; et al. Digitalisation dynamics in SMEs: An approach from systems dynamics and artificial intelligence. Technol. Forecast. Soc. Chang. 2023, 196, 122880. https://doi.org/10.1016/j.techfore.2023.122880.

  • 103.

    Ardito, L.; Filieri, R.; Raguseo, E.; et al. Artificial intelligence adoption and revenue growth in European SMEs: Synergies with IoT and big data analytics. Internet Res. 2025, 35, 1508–1534. https://doi.org/10.1108/intr-02-2024-0195.

  • 104.

    Ferraro, G.; Quinto, I.; Scandurra, G.; et al. The Impact of Artificial Intelligence and Sustainability Management on Fostering ESG Practices and Competitive Perspectives Among SMES. Corp. Soc. Responsib. Environ. Manag. 2025, 32, 6641–6657. https://doi.org/10.1002/csr.70051.

  • 105.

    Cimino, A.; Corvello, V.; Troise, C.; Thomas, A.; Tani, M. Artificial Intelligence Adoption for Sustainable Growth in SMEs: An Extended Dynamic Capability Framework. Corp. Soc. Responsib. Environ. Manag. 2025, 32, 6120–6138. https://doi.org/10.1002/csr.70019.

  • 106.

    Klimecka-Tatar, D.; Kapustka, K. The Role of Artificial Intelligence in Circular Economy Strategies: Predictive Analysis for SMEs. Manag. Syst. Prod. Eng. 2025, 33, 212–219. https://doi.org/10.2478/mspe-2025-0020.

  • 107.

    Ikpe, E.O. Adoption and implementation of artificial intelligence in small businesses in selected developing countries. J. Health Appl. Sci. Manag. 2024, 8, 26–34. https://doi.org/10.4314/johasam.v8i1.3.

  • 108.

    Okereke, C. C.; Arachie, A.; Onah, F. S.; Ndum, N. B. Artificial Intelligence (AI) Adoption in Supply Chain Management Dynamics of Manufacturing Firms in Emerging Markets. Afr. J. Manag. Bus. Res. 2025, 21, 129–147. https://doi.org/10.62154/ajmbr.2025.021.01017.

  • 109.

    Kim, S.; Wang, Q.; Taylor, S.; et al. Building Inclusive Entrepreneurial Ecosystems: Institutional Motivations, Adaptive Design, and Partnership Impacts. Econ. Dev. Q. 2026, 40, 10–26. https://doi.org/10.1177/08912424251393689.

  • 110.

    Ayinaddis, S. G. Artificial intelligence adoption dynamics and knowledge in SMEs and large firms: A systematic review and bibliometric analysis. J. Innov. Knowl. 2025, 10, 100682. https://doi.org/10.1016/j.jik.2025.100682.

  • 111.

    Pesaran, M.H. Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure. Econometrica 2006, 74, 967–1012. https://doi.org/10.1111/j.1468-0262.2006.00692.x.

  • 112.

    Eberhardt, M.; Bond, S. Cross-section dependence in nonstationary panel models: A novel estimator. MPRA-Working Papers 2009, 17692, 1–28.

  • 113.

    Chudik, A.; Pesaran, M.H. Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors. J. Econom. 2015, 188, 393–420. https://doi.org/10.1016/j.jeconom.2015.03.007.

Share this article:
Download PDF
DOI
10.53941/gssd.2026.100029
Issue
Volume 1, Issue 1
How to Cite
Scalamonti, F. Environmental Performance and Renewable Resources: The Impact on Economic Growth in the Emerging and Developing Economies. Global South & Sustainable Development 2026, 1 (1), 29. https://doi.org/10.53941/gssd.2026.100029.
RIS
BibTex
Copyright & License
article copyright Image
Copyright (c) 2026 by the authors.
Article Metrics
21
Article Views
0
Citations