Editorial: Economic Visions to Mitigate Climate Change

REETU VERMA^1*Azer Dilanchiev²

• ¹University of Wollongong, Wollongong, Australia
• ²Caucasus University, Tbilisi, Georgia, Tbilisi, Georgia

Introduction As we strive for a more sustainable future, the research topic 'Economic Visions to Mitigate Climate Change' explores the pivotal role of economic strategies, tools, and visions to drive climate action, aligning with Sustainable Development Goal 13 (Climate Action). This collection highlights the need for a multifaceted approach that integrates economic measures with policy and technological innovations to drive sustainable development and mitigate climate change. By examining innovative economic approaches, such as green finance, responsible investment, and low-carbon pathways, the research topic seeks to uncover innovative solutions that balance economic growth with environmental sustainability. These articles provide critical insights into the interplay between economic, environmental, and social factors, equipping policymakers, researchers, and practitioners with evidence-based approaches to drive sustainable development and mitigate climate change. Overview of Contributions Building on this foundation, the studies have further illuminated the path to sustainable prosperity, highlighting the pivotal roles of green finance, foreign investment, and technological innovation in achieving this pressing global imperative. Wang's exploration of green finance and foreign investment in emerging economies reveals that these factors significantly influence sustainable prosperity. The study's findings suggest that targeted green finance programs, flexible regulatory regimes, and investment-friendly environments are essential for fostering sustainable development. The impact of green finance extends beyond economic growth, with significant implications for environmental sustainability. Shen and Zhang's analysis of green finance's effect on agricultural non-point source pollution in China demonstrates that green finance can play a powerful role in reducing pollution. This is particularly evident in large grain-producing regions and areas with digital inclusive finance. These findings underscore the importance of integrating green finance policies with environmental regulation and creating region-based strategies to maximize environmental benefits. The role of technology in driving sustainable development is further highlighted in Yang and He's study on the high-quality development of the Beijing-Tianjin-Hebei region. Using system dynamics modeling, the authors demonstrate that current trends will make it challenging to reach carbon neutrality and peaking goals. However, a high-quality development scenario can enable the region to reach peak emissions by 2035 and decouple economic growth from environmental output. This study emphasizes the need for prioritizing policy interventions, investments, and regulations to balance economic growth with climate goals. Further exploring the role of emerging factors, research by Yuan et al. reveals a complex, U-shaped relationship between digitalization and carbon emission efficiency. However, human capital, industrial restructuring, and marketization can accelerate the positive impacts of digitalization. This finding highlights the potential for digital transformation to enhance low-carbon pathways, offering valuable insights for policymakers seeking to reconcile technological advancement with sustainable urban development. The importance of environmental taxes and green technological innovation in shaping environmental outcomes is underscored in Khan et al.'s study of OECD countries. The authors confirm that environmental taxes and green innovation substantially reduce greenhouse gas emissions, while innovation further strengthens the effectiveness of environmental technologies. This research highlights the need for integrating regulatory mechanisms with innovation policies to accelerate low-carbon transitions. Another key area of investigation is illustrated by Pan and Zhao's study in the agricultural sector, which demonstrates the potential for system dynamics modeling to balance productivity, ecological protection, and livelihood improvement. The authors show that prioritizing green transition strategies can benefit economically advanced areas, while less-developed regions require supportive policies to sustain agricultural transformation. This work offers a valuable framework for decision-makers seeking to balance short-term progress with long-term sustainability goals in China's rural development agenda. Finally, Mubangizi et al.'s comprehensive overview of climate change theories highlights the multidimensional nature of climate change research. The authors emphasize the need for an integrated, interdisciplinary theoretical approach that accounts for both scientific and sociopolitical dynamics. This finding underscores the complexity of climate change and the importance of crafting effective mitigation and adaptation strategies that incorporate diverse perspectives. In conclusion, these studies collectively highlight the critical role of green finance, technological innovation, and integrated approaches in driving sustainable development. By prioritizing policy interventions, investments, and regulations that balance economic growth with environmental protection, policymakers can foster sustainable prosperity and mitigate the impacts of climate change. Ultimately, a comprehensive understanding of the complex relationships between economic, environmental, and social factors is essential for crafting effective strategies for a sustainable future. Challenges and Future Directions The articles in this collection highlight common challenges and future directions for sustainable development and climate action. Three key issues emerge: policy coherence, institutional preparedness, and regional heterogeneity. Individual measures, whether fiscal, technological, or regulatory, are less effective without an integrated agenda. Connecting green finance to sector reforms and incorporating environmental targets into investment models can increase impact. Institutional frameworks promoting transparency, accountability, and long-term investment horizons are crucial for success. Regional heterogeneity also influences policy effectiveness, requiring context-dependent approaches that consider macroeconomic policy, sectoral planning, and social equity. Future research should focus on cross-sectoral approaches, exploring how green finance can drive decarbonization across agriculture, manufacturing, and urban infrastructure. Advanced methods like modeling, scenario analysis, and machine learning can help policymakers anticipate linkages and design flexible policies. By addressing these challenges, we can unlock the potential of green finance and sustainable development strategies to achieve a low-carbon future. Conclusion The Economic Visions to Mitigate Climate Change Research Topic shines a light on the essential role of economic strategies in mitigating climate change, supporting the objectives of Sustainable Development Goal 13 (Climate Action). The studies demonstrate that mitigating climate change requires not only technological advancements but also economic visions that integrate incentives, stimulate financial mobilization, propel innovation, and protect environmental integrity. By exploring financial determinants of sustainable prosperity, green finance's impact on agricultural pollution, and regional pathways to carbon neutrality, the papers showcase how specific economic policies can advance climate sustainability. The collection provides valuable insights into reconciling growth and sustainability, offering theory and policy proposals. This collection of studies will inspire interdisciplinary research collaborations and inform evidence-based policymaking, ultimately contributing to the development of climate-resilient economies that prioritize sustainability. By advancing our understanding of the complex interplay between climate action and sustainable development, this research lays the groundwork for a more resilient and sustainable global future.