ABSTRACT Achieving sustainable economic growth in emerging economies remains challenging due to fragmented policy approaches linking circular economy practices, technological innovation, and renewable energy adoption. This study investigates the dynamic interactions among these sustainability pillars and their implications for long‐term economic development in five emerging Asian economies—Bangladesh, India, Vietnam, Indonesia, and the Philippines. Drawing on Ecological Modernization Theory and Endogenous Growth Theory, the study aims to examine both short‐run trade‐offs and long‐run complementarities among these variables. Using annual panel data from the World Development Indicators (1995–2024), the study employs a Generalized Method of Moments–Panel Vector Autoregression (GMM‐PVAR) framework to capture endogenous relationships, feedback effects, and dynamic adjustments. The findings reveal that technological innovation is the primary driver of sustainable economic growth and exhibits strong self‐reinforcing dynamics while also promoting circular economy development. In contrast, renewable energy adoption and economic growth initially exert negative effects on technological innovation, indicating short‐term trade‐offs; however, these effects transition into positive synergies over time. The circular economy demonstrates gradual and persistent influence across the system, although its short‐term effects remain limited. Furthermore, Granger causality results confirm that renewable energy adoption significantly predicts sustainable economic growth, while variance decomposition highlights the increasing long‐term contribution of circular economy practices and renewable energy. More importantly, the results underscore the importance of a phased and coordinated policy approach that balances short‐term trade‐offs with long‐term sustainability gains. The study contributes to the literature by providing a dynamic, system‐based understanding of sustainability transitions and offers practical insights for designing integrated policy frameworks in emerging economies.
Hossain et al. (Sun,) studied this question.