Role of insurance in promoting sustainable development in OECD countries: Mediation analysis

This study investigates the correlations between economic and financial indicators and sustainable development goals. Data spanning 1995 to 2022 were collected from 36 OECD countries, resulting in a dataset comprising 1,008 observations. The findings reveal the significant influences of the banking sector’s loan assets, gross insurance premiums, gross domestic product, and tax environment on four dependent variables: carbon dioxide emissions, greenhouse gas emissions, material resources, and renewable energy. Furthermore, the study identifies that value added in financial corporations and patents related to environmental technologies impacts three dependent variables: carbon dioxide emissions, greenhouse gas emissions, and material resources. However, these factors do not influence renewable energy. Additionally, this study establishes that the banking sector’s leverage, financial corporations’ debt-to-equity ratio, financial intermediation ratio, and gross domestic spending on Research and Development R&D affect renewable energy. However, economic debt alone influences carbon dioxide emissions. Moreover, the results indicate that gross insurance premiums mediate between GDP and carbon dioxide emissions, greenhouse gas emissions, material resources, and renewable energy. These outcomes underscore the significance of insurance premium policies, environmental taxes, bank lending management, and corporate debt management as crucial tools for mitigating the environmental impacts of sustainable development.