The Green Economy and its Role in Achieving Sustainable Development, with an Applied Framework for Libya During the Period (2000–2022)

Abstract

This study aimed to analyze the framework of the green economy and its key components, as well as to clarify the relationship between the green economy and sustainable development. The study employed both the descriptive-analytical approach and the econometric methodology. The findings revealed the existence of a long-run relationship between the green economy and sustainable development in Libya. However, the limited implementation of green economy policies—particularly in the field of renewable energy—reduces its positive impact. Meanwhile, economic diversification plays a pivotal role in supporting sustainability.

In the long run, the results indicate a positive effect of renewable energy, a negative effect of carbon emissions, and a strong positive impact of the non-oil GDP. The study also shows that the Libyan economy still heavily depends on oil, with weak green investment acting as a constraint on the sustainable development process.