Impact of macroeconomic variables on sustainability indices using ARDL model

ABSTRACT The present study is conducted to check the effect of the collection of macroeconomic variables on Indian sustainability indices. The independent variables adopted are Industrial Index, Wholesale Price Index, Economy Money Supply (M3), Crude Oil Prices, Real Effective Exchange Rate (REER), while dependent variables are S&P BSE GREENEX and S&P BSE CARBONEX. The study uses monthly data (converted into natural log form) from April 2012 to March 2021. Our study shows that GREENEX is linked with the index of Industrial Production, Wholesale Price Index, M3, Crude Oil Prices, and (REER) and CARBONEX is linked with the index of Industrial Production, M3, Crude Oil Prices, and REER while it is not linked with wholesale prices index. There is no association of interest rates with any of the indices taken (GREENEX and CARBONEX).