Social and Economic Diversity in the European Union on the Road to Green Economy*

Abstract

Purpose: The chapter analyses the diversity of the European Union (EU) member states in terms of the transition to a sustainable, green, and just economy.

Need for the study: Sustainable development is an important concern that the EU approaches by aiming to transition to a greener economy, fairly and inclusively. Moreover, the actual context, post-pandemic period and ongoing war at the EU border, makes the social and economic development of the EU countries matter even more in the light of this just transition.

Methodology: The authors relied on a multidimensional approach, using principal component analysis (PCA) to reduce the dimensionality of the dataset. The cluster analysis allowed us to group the countries in such a way that made it possible to identify the best and worst performers, as well as certain patterns that can be the basis for the formulation of good practices and transferable to the states that need more support in the transition to a green economy.

Findings: The results indicated that EU member states can be grouped into five clusters, each needing specific policies to ensure sustainable and inclusive development. Denmark, Finland, and Sweden turned out the best performers, while Estonia, Lithuania, Bulgaria, and Romania proved to have the most unfavourable situation.

Practical implications: The findings provide relevant policy implication insights for policy decision-makers in the field of green economy, economic development, and social policies, with directions for future research.

Citation

Vasilescu, M.D., Popescu, M.E., Stănilă, L. and Militaru, E. (2024), "Social and Economic Diversity in the European Union on the Road to Green Economy*", Taneja, S., Kumar, P., Reepu, Balusamy, B., Sood, K. and Grima, S. (Ed.) Sustainability Development through Green Economics (Contemporary Studies in Economic and Financial Analysis, Vol. 114), Emerald Publishing Limited, Leeds, pp. 1-19. https://doi.org/10.1108/S1569-375920240000114001