Role of External Finance and Innovation in Achieving Eco-Efficiency and Sustainable Development Goals

Abstract

Eco-efficiency is a biggest universal challenge and one-fourth CO₂ emission produce by World Transport sector. UN Sustainable development Goals Agenda-2030; Paris agreement of 2015 was most successful agreement between the advancing Global World to set a target, to meet Social-economic-environment success. The main objective of this study is to examine the effect of External finance and Power Diversity on Eco-efficiency and sustainable Development Goals; to identify the best financial and transport eco-power source. This study used two ways of data analysis; first, past and future trend analysis, and second, Regression, GMM and Robust measurement; first, External finance Trend of four countries, Japan has least dependent country, china only face dependency in FDI, while Pakistan major dependency on Remittances and ODA-Foreign-Aid. Fuel Consumption Trend; Japan Eco-efficiency policy is better than other three countries, but still away from Paris Agreement-Target-2030. Second; Regression and GMM results indicates external finance i.e. FDI, Remittances, ODA and Transport Power Source i.e. Oil and Electric high significant impact on eco-efficiency and SDGs; GDP highly significant inverse, health negative and Per-Capita GDP, Government Consumption positive relationships exist with Eco-efficiency and SDGs. The robust result indicates of validity and the sustainability. Study implication and recommendation are cleared; external finance has a modern finance source for technology enhancement and economy. Transport Cargo system need to be design according eco-friendly, UN SDGs Agenda-2030. Government need to enacting policies to encourage foreigner to invest eco-friendly project like modern technology enhancement, people to move away from gasoline and diesel transportation until modern technology eco-efficient, Electric power system is an alternative of fossil power generation toward CO₂ emission reduction.