The Role of Green Technologies in Shaping Sustainable Economic Growth

Abstract

This review examines how green technologies (including renewable energy, sustainable transport, energy efficiency, circular economy practices, and green construction) contribute to sustainable economic growth across regions. We synthesize findings from peer-reviewed studies (2018–2024), international agency reports (World Bank, IEA, IRENA, OECD, etc.), and data sets, with attention to G7, BRICS, EU, and developing countries. Empirical evidence generally shows that expanding green tech spurs growth and job creation (e.g. China’s clean-energy boom drove ~40% of GDP growth in 2023), though some short-run trade-offs have been noted in select contexts. Key quantitative results include elasticities from panel regressions and input–output analyses linking renewable penetration to GDP, as well as global statistics (e.g. 13.7 million renewable energy jobs worldwide in 2022). We also identify barriers (financing gaps, policy uncertainty, skill shortages) and enablers (innovation policy, finance mechanisms, training) of the green transition. Case examples (China’s clean-energy surge, EU Green Deal, urban clean construction) illustrate how targeted policies amplify benefits. The discussion highlights that green tech adoption can decouple growth from pollution if supported by coherent strategies. Policy implications emphasize scaled investment, incentives for green R&D, workforce development, and international cooperation. The paper provides a foundation for understanding how green innovation drives inclusive growth.