Advancing sustainable construction in the EU: the role of environmental taxation, financial development and green energy financing

Purpose This study examines the critical factors of green buildings (GBs) in 19 selected EU countries from 2009 to 2022, exploring the impact of economic growth, environmental taxation, human capital, renewable and non-renewable energy and financial development on sustainable construction. Design/methodology/approach Employing advanced panel data techniques, GBs are proxied by the total points achieved in compliance with the Leadership in Energy and Environmental Design rating system, the most widespread GB rating tool worldwide. The relationship between GBs and various macroeconomic, financial, social and environmental indicators is investigated. Findings Empirical findings confirm that most factors, except financing non-renewable energy entrepreneurship, positively impact GB trends. The conclusions contribute to the development of theoretical frameworks and to forecasting of GB trends. Originality/value To our knowledge, this is the first empirical study that analyzes the relationship between GBs and various macroeconomic, financial, social and environmental indicators using statistical data and econometric techniques, but also provides critical insights into how these associations can inform policy decisions and construction entrepreneurship.