A green ideology in Asian emerging economies: From environmental policy and sustainable development

Abstract

This panel study investigates the relationship between green logistics indices, economic, environmental, and social factors in the perspective of Asian emerging economies. This study adopted Fully Modified OLS (FMOLS) Model and Dynamic OLS (DOLS) Model methods to test the research hypothesis, catering the problem of endogeneity and serial correlation. The results suggest that logistics operations, particularly LPI2 (efficiency of customs clearance processes), LPI4 (quality of logistics services), and LPI5 (trade and transport‐related infrastructure), are positively and significantly correlated with per capita income, manufacturing value added and trade openness, whereas greater logistics operations are negatively associated with social and environmental problems including, climate change, global warming, carbon emissions, and poisoning atmosphere. In addition, human health is badly affected by heavy smog, acid rainfall, and water pollution. The findings further extend and reveal that political instability, natural disaster, and terrorism are also a primary cause of poor economic growth and environmental sustainability with poor trade and logistics infrastructure. There is very limited empirical work presented in the literature using renewable energy and green ideology to solve macro‐level social and environmental problems, and this study will assist the policy makers and researchers to understand the importance of the green concept in improving countries' social, economic, and environmental performance.