Towards environmental sustainability: Exploring the nexus among ISO 14001, governance indicators and green economy in Pakistan

The green growth paradigm has gained much attention in the last decade. Green growth not only protects the environment and human beings but also serves as a substitute for scarce natural assets. Governance institutions develop laws and policies for all industries in a country and are directly responsible for natural resource exploration and environmental protection or destruction. Pakistan is the fifth most vulnerable country to environmental hazards in the world. To address this issue, this study is the first to analyze the relations among governance indicators, ISO 14001 and green growth in Pakistan by using time-series data from 2000 to 2017. The study utilized advanced mathematical Grey Relational Analysis (GRA) models, namely, absolute grey relational grade (GRG), Deng's GRG, and Second Synthetic Degree of Grey Incidence Analysis (SSGIG) models, to capture the relations among the studied variables. The main results revealed that ISO 14001, with the highest GRA values of 0.8-0.9, proved to be effective in channeling green growth. Among all governance indicators related to green growth, the rule of law with the highest maximin criterion value of 0.644 was found to play a key role for Pakistan. The study findings provide insights into how good governance can contribute to accomplishing the objectives of environmental sustainability. They can also help legislators and organizations understand the importance of ISO 14001 certification to promote sustainable practices across sectors in Pakistan.