Abstract:
The increase in industrial production volumes has led to a greater anthropogenic impact and environmental degradation, making it impossible for the market system to function without considering negative externalities. This article examines the principles and directions of a “green economy" as a foundation for the future development of society. It analyzes the current state and trends of environmental factors affecting other quality of life indicators, comparing developed and developing countries. The study explores effective indices and instruments that influence ecological and economic development, along with the main challenges and trends in implementing a “green economy." It demonstrates that indicators accounting for negative externalities, are more effective than commonly used indices. The article also analyzes the economic losses from negative impacts and shows a significant decrease in per capita GDP with extensive economic development.
This paper aims to aid in developing a green economy as part of policies to reduce environmental risks during economic growth. The proposed indicators and tools for environmental and economic development, stemming from the implementation of a “green economy" as a key vector for sustainable development, can be utilized in further research and adopted by European companies.