Holistic Model of Green Economic Growth for Sustainable Development in Selected OIC Countries: The Moderating Role of Institutional Quality

DOI

10.2991/978-94-6239-624-1_7How to use a DOI?

Keywords

Green Economic Growth; Islamic Finance; Renewable Energy; Technological Innovation; Environmental Policy; Institutional Quality; Sustainable development goals; OIC Countries

Abstract

The global agenda toward sustainable development encourages Islamic countries to balance economic growth with environmental preservation. This study aims to analyze the impact of Islamic finance, renewable energy, technological innovation, and environmental policies on green economic growth in selected member countries of the Organization of Islamic Cooperation (OIC), both in the short and long term, while considering the moderating role of institutional quality. The study employs panel data from the 2019–2023 period and utilizes the Generalized Method of Moments (GMM) to address potential endogeneity and bias in the dynamic model. Control variables include inflation, foreign direct investment (FDI), gross domestic product (GDP), and population to ensure more robust results. Empirical findings indicate that Islamic finance, renewable energy, and technological innovation have a positive and significant effect on green economic growth, while the impact of environmental policies depends on the level of institutional quality. Furthermore, institutional quality is found to have a positive moderating effect, strengthening the relationship between Islamic finance and green economic growth. These findings underscore the importance of strong institutions in enhancing the effectiveness of financial and green technology policies. This study contributes to the development of the sustainable Islamic finance literature by offering policy implications for OIC countries to strengthen institutional frameworks, promote renewable energy innovation, and integrate financial instruments in achieving sustainable development goals.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Muh. Ginanjar
AU  - Sukran Sukran
AU  - Hamida Hamida
AU  - Nur Ariani Aqidah
AU  - Nurfadilah Nurfadilah
PY  - 2026
DA  - 2026/04/06
TI  - Holistic Model of Green Economic Growth for Sustainable Development in Selected OIC Countries: The Moderating Role of Institutional Quality
BT  - Proceedings of the International Conference on Sustainable Economics and Finance in the Digital Business Transformation (INCOSEF 2025)
PB  - Atlantis Press
SP  - 78
EP  - 104
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-624-1_7
DO  - 10.2991/978-94-6239-624-1_7
ID  - Ginanjar2026
ER  -