Revealing the Impact of Green Entrepreneurship on Environmental Sustainability in Turkey: What Will Be the Role of Green Innovation?

This research investigates how green entrepreneurship, green innovation, and domestic credit to the private sector, contribute to environmental sustainability in Turkey from 1990 to 2022. Environmental sustainability is proxied by ecological footprint. The methods used include Wavelet Quantile Regression (WQR) and Wavelet Quantile Correlation (WQC). This research also ascertained if interacting domestic credit and green entrepreneurship and domestic credit and green innovation could contribute to environmental sustainability using the Multivariate Wavelet Quantile Regression (MWQR) approach. The WQR and WQC outcomes confirm the following: (1) green entrepreneurship reduces ecological footprint across all quantiles and periods; (2) green innovation reduces ecological footprint in the short and medium term, while in the long term, it increases ecological footprint; (3) domestic credit increases ecological footprint across all quantiles and periods. The MWQR results confirm that domestic credit and green entrepreneurship interaction reduces ecological footprint, while domestic credit and green innovation interaction reduces ecological footprint in the short term. Policies are recommended for implementation.