Leadership role in sustainable future of circular economy: Climate, economy, and environment interplay

Ali Junaid Khan, Iza Gigauri (), Sana Fayyaz, Gheorghina-Liliana Birladeanu and Iffat Sabir Chaudhry
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Ali Junaid Khan: The Islamia University of Bahawalpur
Iza Gigauri: The University of Georgia
Sana Fayyaz: Bahauddin Zakariya University
Gheorghina-Liliana Birladeanu: Agora University of Oradea
Iffat Sabir Chaudhry: Al Ain University

E&M Economics and Management, 2025, vol. 28, issue 3, 195-211

Abstract: The issue of climate change is a significant concern in contemporary society characterized by a volatile, uncertain, complex, and ambiguous (VUCA) environment. Asian nations are also dealing with issues related to climate change. The objective of this study is to ascertain the relationship between climate change and its impact on both the economy and the environment. This research examines the moderating influence of leadership skills on the variables of climate change, the economy, and the environment. The study employed a time lag research design to gather data in Pakistan. The analysis was based on a structural equation modelling approach with a sample size of 4,243 participants. The results suggest that leadership skills have a significant moderating impact on the relationship between climate change and the economy, and between climate change and the environment. The research highlights the impact of climate change on the economy and environment of a developing nation. The findings indicate that effective leadership abilities are necessary to manage environmental and economic conditions for long-term sustainability. The study holds significant implications for both theoretical and practical domains, particularly in enhancing climate control by incorporating leadership competencies. This research contributes to the concept of circular economy by showcasing the complex relationship between climate change, environment, economy, and leadership. The research extends noteworthy avenues for future exploration, laying the foundation for further contributions to the existing body of literature related to circular economy.

Keywords: Leadership skills; climate change; environment; global warming; circular economy (search for similar items in EconPapers)
JEL-codes: M10 M2 O1 O15 Q01 (search for similar items in EconPapers)
Date: 2025
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https://doi.org/10.15240/tul/001/2025-5-015

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Persistent link: https://EconPapers.repec.org/RePEc:bbl:journl:v:28:y:2025:i:3:p:195-211

DOI: 10.15240/tul/001/2025-5-015

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