Unraveling the Green Growth Matrix: Exploring the Impact of Green Technology, Climate Change Adaptation, and Macroeconomic Factors on Sustainable Development

This study aims to investigate the influence of various economic, environmental, and social factors on sustainable development, with a specific focus on the impact of green technology and climate change adaptation. A panel dataset comprising 38 OECD member countries from 1990 to 2020 is employed, and a series of dynamic panel data models are estimated using the system generalized method of moments (GMM) approach. Numerous covariates, such as globalization, socio-economic conditions, economic and political values, climate and technological progress, and environmental determinants, are examined. The empirical findings highlight the significant role played by macroeconomic, institutional, social, and government policy-related factors in sustainable development. More importantly, our results provide novel and robust evidence that the diffusion of green technology and climate change adaptation positively affect green growth. The study's empirical outcomes are demonstrated to be robust to misspecification errors and statistically significant at traditional significance levels. These findings carry substantial policy implications for the development and implementation of strategies that promote climate change adaptation and green innovation. Consequently, policymakers should prioritize the integration of green technology and adaptive measures in their sustainable development agendas to foster a greener, more resilient future.