Pathway to environmental sustainability in Asia: Roles of fiscal policy and digital government

NGUYEN VIET HONG ANH

PhD, University of Finance - Marketing (Corresponding author)

Email: [email protected]

NGUYEN NAM PHUONG, BUI THU HANG, CHU THI THU HOAI, TRAN QUYNH HUONG, LE NGOC PHUONG LINH

University of Finance – Marketing

Abstract

This study examines the influence of fiscal policy on environmental sustainability across 36 Asian nations from 2010 to 2024, with particular emphasis on the regulatory function of digital government. The S-GMM dynamic panel regression method indicates that the implementation of fiscal policy, via increased revenue and spending, positively influences environmental sustainability. Simultaneously, the digital government factor (assessed by the United Nations E-Government Development Index - EGDI) generates a distinct positive impetus for enhancing environmental quality. The interaction between fiscal policy and digital government on environmental sustainability is unfavorable and statistically significant. This proposes policy implications for modifying fiscal instruments to align with the rapid digital transition in Asia, hence enhancing environmental sustainability.

Keywords: Fiscal policy, environmental sustainability, digital government, Asia

(This article was published in the Vietnam Economic & Financial Review, Vol 2, Issue 1, February 2026)

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