Mapping Cultural Influence on Green Economic Development

Research purpose. This study explores the cultural underpinnings of green economic development in the EU and Ukraine by examining how national cultural dimensions shape eco-efficiency trajectories, institutional responsiveness, and technological transformation. By integrating Hofstede’s cultural framework with the Malmquist‒Luenberger productivity index (MLPI), this paper aims to identify cultural configurations that either catalyse or constrain green productivity and map country-specific patterns in green economic performance. Design/Methodology/Approach. The research applies a directional distance function-based MLPI model to a dataset of 27 EU countries and Ukraine from 2005–2023. The model distinguishes between technological progress and efficiency change, integrating multiple inputs (capital, labour, renewable energy) and outputs (GDP and an environmental burden index based on CO₂, PM2.5, water stress, fertiliser use, and forest loss). Cultural characteristics were assessed via six Hofstede dimensions. Hierarchical cluster analysis (Ward’s method) was used to group countries on the basis of their cultural and eco-productivity profiles. Canonical discriminant analysis was used to validate the cluster structure and determine the most influential cultural variables. Findings. Three clusters of countries were identified, each reflecting distinct cultural and green economic development profiles. Cluster 1 included high-income, moderately individualistic countries with a strong performance orientation; Cluster 2 included countries with higher indulgence and uncertainty avoidance but moderate green convergence; and Cluster 3 included Eastern and Southeastern European nations with lower eco-productivity, weaker governance, and high cultural rigidity. Discriminant analysis revealed that indulgence, uncertainty avoidance, and power distance were key differentiators. Green TFP exceeded unity in 42% of the years for Ukraine but declined from 2022–2023 due to war-induced disruptions. The model achieved 100% classification accuracy, confirming the predictive value of cultural dimensions in explaining cross-national differences in green growth. Originality/Value/Practical implications. This study advances the theoretical and empirical understanding of how cultural norms influence the national capacity for sustainable transformation. This finding demonstrates that green policy effectiveness is not merely a function of economic or technical readiness but is deeply shaped by the cultural context. Policy implications include the need for culturally adaptive sustainability strategies, especially in countries with hierarchical institutional cultures and risk-averse populations. The findings also support EU efforts to tailor green financing and cohesion policies to cultural realities. Future research should explore dynamic cultural change and extend the analysis beyond Europe to examine global cultural diversity in sustainability transitions.