The Dual Impact of the Green Economy on Sustainability and Labour Markets
Abstract
This research investigates whether the Green Economy (GE) can be the key to achieving sustainable development goals, especially in the areas of GDP per capita, unemployment, and poverty. The analysis through descriptive statistics and associations gives an idea of the significant variation in the main variables of the dataset, where GDP per capita has the greatest range, and unemployment rates have the lowest standard deviation. The correlation matrix, which depicts high interrelations among the GE dimensions and the macroeconomic variables without any signs of multicollinearity, assures the reliability of the model. The Generalised Least Squares (GLS) regression results show that the GE initiatives have positively and significantly affected the GDP per capita, with each dimension of GE contributing to economic growth. Nonetheless, the variable of the labour force negatively correlates, implying the existence of trade-offs in the sectors that require more labour. The study of the unemployment rates is contradictory, as the two factors, Environment and Natural Capital, show a positive relationship with joblessness, while the studies that emphasise the creation of jobs through green innovations are being contradicted. Additionally, the characteristics of Market and Investment and Environment and Natural Capital considerably lower poverty, demonstrating how GE innovations advance social justice. Policymakers are urged to create focused plans that combine social, environmental, and economic goals in order to accelerate the shift to a sustainable and inclusive future. To do this, they might rely on green finance systems and technology innovation.
Keywords
Environmental Economics, Sustainable Development Goals, European Green Deal, Employment
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