Cycles-specific benefits of smart transport for sustainable investing: Global and regional perspectives with different ethical paradigms

Abstract

This study investigates the impact of light and heavy intelligent transportation systems on sustainable and socially responsible investments. It analyzes ESG, Islamic ethics-screened, and carbon-efficient industries, such as green-steady dividends and aqua-low-carbon Euro-ESG, using quantile-VAR methodologies and causality-in-quantile approaches from July 2013 to April 2023. The findings reveal significant spillover effects of sustainable and responsible investments on light and heavy smart transportation systems, particularly under normal market conditions. Heavy smart transportation systems exhibit a stronger recipient characteristic for investment growth compared to light systems. The study highlights the influence of sustainable and responsible investment opportunities on smart transportation performance across diverse market conditions. Specifically, heavy smart transportation systems demonstrate a notable impact in the middle and upper quantiles of the market. Conversely, light smart transportation systems have potential in stimulating shariah investment prospects, particularly during bear market conditions. Further analysis incorporating carbon-efficient industries refines these findings, showing that light systems generate spillover effects leading to green-steady dividends, while heavy systems act as catalysts for hydro-low-carbon Euro-ESG investments. Overall, the study underscores the pivotal role of smart transportation systems in regional low-carbon industries and provides valuable insights for transportation planners and regulatory authorities.