Green development as a catalyst for inclusive economic transformation: a cross-country analysis of sustainable growth pathways

This study investigates how green development influences inclusive economic transformation across OECD countries between 2000 and 2022. Grounded in ecological economics and inclusive growth theory, it combines sustainability and equity within a unified analytical framework. Using advanced panel data methods - fixed effects, Driscoll-Kraay, and system GMM - it assesses the effects of renewable energy use, reduced carbon intensity, and green innovation on income equality, social protection, and employment participation. The findings show that green development significantly promotes inclusive growth, particularly in countries with strong governance, effective regulation, and robust financial systems. Institutional quality plays a key role in translating green investments into equitable outcomes. Addressing a gap in the literature that often treats environmental and social goals separately, the study demonstrates how green transitions can align ecological sustainability with social justice. The results offer valuable policy insights for promoting just transitions consistent with the Sustainable Development Goals and the Paris Agreement.