The Impact Of Green Economy On Sustainable Development: Evidence From Palestine

Abstract

Purpose: Globally, the green economy (GE) is now acknowledged as a major force behind sustainable development (SD). With a focus on GDP per capita, unemployment rate, and poverty level from 2005 to 2024, this paper investigates GE's role in SD in Palestine.

Design/methodology/approach: The analysis integrates the four aspects of the Global Green Economy Index (GGEI) to evaluate the multidimensional impact of GE using Generalized Least Squares (GLS) regression on cross-sectional data (panel data).

Findings: Empirical results indicate that most GE dimensions are positively associated with poverty reduction, while Green Economic Opportunities (GEO) exhibit a negative and statistically significant effect on GDP per capita, unemployment, and poverty. Efficient and Sustainable Resource Use (ESRU) shows no significant relationship with GDP per capita or unemployment.

Policy implications: The study highlights the importance of sustained public and private sector engagement in GE initiatives to promote SD, enhance employment, and reduce poverty.

Originality/value: This research is among the first studies in underdeveloped countries to examine the GE–SD nexus using three SD indicators within a GLS framework, offering evidence-based insights for policymakers.