Does sustainable development have a causal relationship with environmental development? Evidence from a country-wise panel data analysis

This study contributes to the development of global sustainable development index (GSDI) as an integration of environmental sustainability development index (ESDI), socio-economic development index (SEDI) and science and technological progress index (STPI) for selected 39 countries during 2000–16. It uses the composite Z-score method, while ESDI, SEDI and STPI are the assimilation of 33, 19 and 9 factors, respectively. Subsequently, it examines the association of sustainable development (SD) with ESD and vice versa using linear, log-linear and non-linear regression models. Descriptive results show that there is a significant variation in SD due to a high diversity in environmental development, socio-economic development and science and technological progress-associated factors in selected countries. Empirical results imply that SD has a positive and significant association with ESD, socio-economic development and science and technological progress-related factors. This study emphasizes that global economies are desired to adopt conducive policies towards environmental, socio-economic and science and technological development to attain SD. Also, it advises that the protection of forest area, use of environmental and green technologies in production activities, creation of more jobs in all sectors and strong IPR regimes would be effective for sustainable, socio-economic, environmental development and science and technological expansion worldwide.