A CRITICAL REVIEW OF THE RELATIONSHIP BETWEEN ENVIRONMENTAL PERFORMANCE INDEX, FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH .

This article provides a critical review of the relationship between the Environmental Performance Index (EPI), financial development, and economic growth. The study finds that environmental performance and sustainability are important for economic growth in industrialized countries, while sustainable financial systems and renewable energy can promote economic growth in developing nations. Government policies such as carbon costs and taxes, technology transfer programs, and green trade policies are crucial for sustainable economic growth. Trade globalization contributes to global economic growth and reduces poverty levels, but policymakers should prioritize environmental performance and sustainability in their economic policies. It is important to consider CO2 emissions and energy consumption when addressing climate change. Developing countries may face technological limitations when transitioning to renewable energy sources. The relationship between environmental performance, financial development, and economic growth in developing countries is complex and varies depending on the specific country and time frame. Policymakers should prioritize settling carbon costs and taxes, commercializing low-CO2 emissions technologies, reducing subsidies for nonrenewable energy, providing technology transfer programs, and creating a green trade policy to achieve sustainable development. Renewable energy and energy efficiency can support sustainable economic development and reduce CO2 emissions in developing countries, but effective policies and investments in green technology are needed to balance economic and environmental sustainability goals. [Extracted from the article]