Transformations  in
Business & Economics

BOOSTING SUSTAINABILITY AND HUMAN WELL-BEING: SYNERGISING GREEN INNOVATION, GREEN FINANCE AND HEALTH EXPENDITURE TO REDUCE VIETNAMESE CARBON EMISSION
Trinh Anh Tuan, Nguyen Quoc Thai, Nguyen Thi Thu Cuc, Nguyen Huu Trinh, Pham Minh Tien, Dương Thi Thanh Hau

ABSTRACT: Although Vietnam’s commitment to sustainability is quite evident due to its strategic adoption of sustainable practices, however, with significant economic expansion, the country has been facing significant environmental challenges in the form of deforestation, pollution, climate change and others. The scenario, thus, necessitates a multi-faceted approach to ensure long term sustainability. In this regard, the present study aims to assess green finance, environmental policy, green innovations, health expenditures, and human development in terms of sustainable development in the Vietnamese context. The study used time series data from 1995 to 2021 and analysed it through QARDL estimations. With significant results in the case of green finance, environmental policy, green innovations and health expenditures, the study suggests that environmental policies greatly help the country provide a regulatory framework that enforces green practices. Green innovation and green finance are also vital tools for the economy to drive economic growth by creating new sustainable paths and promoting funding for green projects. Findings also highlight the crucial role of effective health spending as it ensures that a healthier population is capable of participating in sustainable initiatives. Thus, this confirms the evident role of these synergetic factors in the country’s progress toward carbon neutrality. However, the insignificant relationship of human development with sustainable development can be an exciting debate, implying that sometimes careless policies aimed at carbon neutrality neglect socio-economic factors. Therefore, in light of the findings, the study recommends implementing strict environmental policies and promoting green innovation activities. It is also suggested that the policies of the health and education sector be revised to promote sustainability in Vietnam.

KEYWORDS:  green finance, green innovations, environmental policy, human development, health expenditures, QARDL, Vietnam

JEL classification:  C33, G28, I15, O39.