CLIMATE CHANGE AND ECONOMIC GROWTH: CAN GREEN POLICIES STIMULATE OR STIFLE DEVELOPMENT

Abstract

The global climate crisis has intensified debates on whether green policies drive or hinder economic growth in the pursuit of sustainable development. This study examines how environmental regulations, including carbon pricing and renewable energy transition, influence economic performance and labor market dynamics. While critics emphasize short-term costs, our qualitative analysis—using comparative case studies of policy implementation across diverse economies—demonstrates that well-designed climate strategies can stimulate innovation, enhance energy security, and foster long-term prosperity. We evaluate the role of international frameworks like the Paris Agreement and propose balanced approaches that align ecological and economic objectives. The findings highlight that the long-term benefits of strategic climate policies outweigh transitional challenges, particularly when supported by inclusive social safety nets and targeted industrial strategies.