The term Sustainability has shown up as a systematic approach that aims to eliminate the waste and to use the resources continuously by recycling, remanufacturing, reusing, repairing, and refurbishing in a way that increases the lifetime of the products, and makes them a new resource for another process . Sustainability ensures the health of the planet by reducing the pressure on the environment and the natural resources and benefits the economy by increasing competitiveness, innovation, and profit. The current inefficient use of resources calculated to cost European industry 600 billion euros annually, these can be translated into substantial gains by increasing the resource efficiency in manufacturing . Organizations cannot ignore environmental issues if they want to survive in the global market, as the government regulations and stronger public awareness in environment protection increase, the integration of environment, economic and social performances to achieve sustainable development is a major business challenge for the new century . Sustainable development is a concept which aims to meet the needs of the present without affecting future generations to get their needs , the term is referred to the UN conference on the environment which was held in Rio de Janeiro in 1992 (Earth summit). Sustainable development was defined in the conference as: “alignment of economic growth on the one hand and the rational use of natural resources on the other hand” . Therefore, sustainable development is organizing the society so that it can exist for long-term by keeping the sufficient goods and services which are needed to maintain a well-functioning society. Another two pillars of sustainable development are environmental and economic. All three pillars are useful starting points for identifying difficulties and establishing green economic policy . Environmentally, the natural resources should not be depleted, and the renewable resources should not be over-exploited. Economically, the economic growth should consider distributional equity, health, education, and political accountability . Because it is the primary source of income, economic growth has an impact on the environment. Today's economic progress must ensure that future generations are not worse off than current ones. Or, to put it another way, per capita welfare should not be diminishing with time, as some economists have phrased it .
Environmental degradation and climate change have occurred, impacting everyone on the planet . Since then, the economic growth has been the primary target of the sustainable development process . Policymakers in nations like Denmark, Germany, Norway, and France have used the phrase "green economy" to push policy objectives, the European green economy is being promoted by the Organization of Economic Cooperation and Development (OECD) and the UN as a new paradigm to enable the economic growth while enhancing sustainability . Energy markets, natural resource development, clean and sustainable production, environmental innovation, and further development of services industries are all examples of green economies . To achieve the SD goals, green economies and economic growth must work together, as the is economic growth is one of the key indicators of a thriving economy. The benefits of traditional economic development, on the other hand, are not evenly dispersed, which can rise to wealth disparity and social conflicts . According to Hartwick (1977), the path of the sustainable economic development is governed by different principles. First, Environmental, and natural resources must be managed effectively to reduce welfare losses from environmental degradation and to maximize resource rents gained after "internalizing" environmental externalities. Second, the rents generated by natural capital depletion must be invested in other productive economic assets .
The engagement of each pillar is included in the execution of GE. As a result of these interactions, three common borders will emerge: eco-economic, socio-environmental, and socio-economic. In the context of SD, GE reflection would appropriately give policymaking chances for achieving SD goals. The GE conscript serves as a catalyst for reforming the grey economy and enacting sustainable development goals in national and international legislation .
In September 2015, international leaders at the United Nations (UN) endorsed the 2030 Agenda for Sustainable Development (UN, 2015), The Agenda of 2030 sets down 17 sustainable development goals (SDGs), which are increasingly being referred to as global objectives because they apply to all governments in the world , the 8th goal promotes the sustainable economic growth . Despite some criticism, the agenda has received widespread support, and global expectations for the SDGs are high . The SDGs rely on three main factors which are the environment, society and economy, each factor of them in recent years, has played a significant role in attempts to promote innovation, funding, and global development . The SDGs are a gift to businesses since the financial benefits for meeting the requirements specified in the SDGs are substantial. According to the Business and Sustainable Development Commission, offering solutions to the SDGs may generate up to 380 million new employments by 2030, with a potential economic payoff of at least $12 trillion per year in market opportunities . Some of the most important variables in the economic field which helped in enhancing the competitiveness and furthering market and business development Entrepreneurial entries, innovation, knowledge economy development, and digitalization . Sustainable economy relies on the usage of the resources flow and the value of externalities being created , sustainable economic growth reveals the key to solving the ecological disasters, weather changing, economic and social issues that affect most of the people around the globe . According to reports, a country's economic growth and development are intimately linked to environmental and natural resource protection . Economic growth occurs in a succession of lengthy waves, each lasting 40–60 years and coupled with a specific technical discovery that pushes the economy and gradually shifts the current techno-economic paradigm , which makes technology one of the key drivers for economic growth. Various researchers have emphasized the fundamental notion of energy and resource rational utilization, which may be done by reproducing, altering the kind of durable goods, disseminating appropriate Eco compatible technology, and implementing advanced forms of industrial ecology among businesses . The economic growth is being measured based on the GDP, while sustainable economic growth carries the idea of measuring the economic growth in more realistic way handling the economic growth in all its physical, social, and mental stats. Sustainable economic growth must be fueled by energy systems that are increasingly more efficient, less expensive, and cleaner to increase economic productivity and competitiveness . In this century the environmental issues will play an essential role in determining the characteristics and options for economic development since the environmental problems are not only affecting the natural ecosystems, but the economic activity as well . Sustainable economic growth donates continuity without making any fluctuations in the rate of economic growth and keep the main aim that future generations don’t suffer from depleting the natural resources. The economic growth is also enhanced with higher income reflected by the GDP which affects per capita income and makes the living standards and living better .
Nowadays governments tend to encourage sustainable economic growth to reduce unemployment, poverty, and inequality, P. Eko Prastery and N. Rahayu Kistani (2020) used primary data on entrepreneurship and SMEs in the provinces of Central Java and Yogyakarta in Indonesia to explain the four pillars of growth and development (human capital, social capital, institutional economies, and entrepreneurship) as the main drivers for equality and sustainable economic growth. The recursive model path analysis was used as an analytical method to conclude that there is a very strong correlation, significant, and positive influence between human capital and quality economic growth and that human capital is the primary and first key to promoting quality, high, and long-term economic growth. Second, entrepreneurship is a critical aspect in achieving long-term economic progress. The importance of repairing social capital is the third factor to consider. Fourth, institutions are fostering economic growth quality and durability through the characteristics of new economic quality. Fifth, it appears that greater economic freedom is required to increase the quality of existing institutions, human capital capability, and productive entrepreneurship competitiveness, as well as the other way around. It was also found that if the strategy of fostering sustainable economic growth is effective, then economic growth will be able to eliminate unemployment, poverty, and inequality to a greater extent . The performance of the stock markets is additionally counted as an essential parameter to measure the country’s economic growth, using an economic study, Henry Okodua and O. Olabanji Ewetan (2013) investigated the link between stock market performance and economic development in Nigeria to discover that the Nigerian economy's long-term development is too susceptible to interest rate fluctuations. This shows that macroeconomic variables in Nigeria are currently more beneficial in influencing the country's long-term economic orientation . Environmental regulations may have some impact on long-term economic growth. Jorgenson and Wilcoxen (1990) investigated the impact of environmental regulations on long-term economic growth in the United States by building a detailed model of the economy that included the determinants of long-term growth and analyzing the interaction between industries to capture the full ramifications of environmental regulations. The cost of emission restrictions was estimated to be more than 10% of the overall cost of government procurement of goods and services . Environmental regulations have a negative effect on economic growth in different urban agglomerations, according to Chong, Z., Qin, C., and Ye, X. (2016), who investigated the influence of environmental regulations on sustainable economic growth in China. Cities with more lenient environmental regulations had a higher growth rate. The long-term impact of environmental restrictions on long-term economic growth was also investigated, with the conclusion that there is insufficient evidence in the surveyed locations .