Article
GREEN ECONOMY AND RENEWABLE ENERGY TRANSITIONS
The study investigates the transition process and core principles of a green economy. At a global level, green growth represents the essence of a green economy. In this context, the process of restructuring the market economy and transitioning toward a green economy implies continuous efforts and interdependence since it cannot be achieved in isolation. The model of restructuring economic activities to the specificity of a green economy addresses the interdependent pillars of sustainable development: environmental concerns; renewable energy; low carbon levels. Nevertheless, the green economy model that is applied to advanced economies cannot be implemented to low-income economies because of development gaps. Moreover, emerging economies also have other goals and priorities that demand changes into the green economy model of advanced economies. Further study suggests that the boosting effect from implementing renewable energy policy may be overshadowed by its effects on resource allocation efficiency and technological innovation. In addition, differences in firms' type, external environment, and geographical location make the impact of renewable energy policies on total factor productivity heterogeneous. For example, renewable energy policies tend to suppress the total factor productivity of state-owned firms, large-scale firms, and firms with high equity concentration. The transition to a green economy for any country is crucial for the sustainability development of the economy, environment, society, and governance. A green economy is a sustainable approach to combating climate change and promoting sustainable development through the adoption of sustainable energy.
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