Does green entrepreneurship affect sustainable economic development? Evidence from OECD nations

This study examines the impact of green entrepreneurship on economic growth in 23 OECD countries for a period from 2005 to 2024. The study employed Linear Panel ARDL model along with Cross-Sectional Dependence (CD) test, CIPS unit root test, Hausman test and Wald Test of Asymmetric Link. CUP-FM technique was utilized for robustness check. The novelty of our study is long and short run dynamics utilizing ARDL technique by exploring the Pooled Mean Group (PMG) estimator and the Mean Group (MG) estimator along with CUP-FM technique. The findings indicate that green entrepreneurship (GE) significantly enhances long-term and short-term economic growth. A 1% increase in GE increases economic growth by 8.01% in the long run. Financial technology exhibits a significant positive impact in the long run. A 1% increase in financial technology increases economic growth by 4.95% in the long run. Renewable energy demonstrates a negative but insignificant impact on long-term growth and a significant negative impact on short-term growth. It may be due to high adjustment cost in the early stages of energy transition. The study concluded that if financial technologies are implemented, they would spur the practice of industrially sustainable industries and technological development having a positive effect on long-term economic growth. The policymakers should promote green entrepreneurship, financial technology and foreign investments to leverage long-term economic benefits while carefully managing the short-term adjustment period. Our findings are closely aligned with Sustainable Development Goals (SDGs) 7, 8, 9,11 and 13.