The Green Shift: Economic Tools for Sustainable Growth in the Digital Age

Abstract

As environmental challenges such as climate change, resource depletion, and pollution escalate, embedding sustainability into economic models has become an urgent necessity. This paper examines the role of environmental economics in addressing these issues by critically evaluating traditional economic frameworks and their shortcomings in accounting for environmental costs. It explores alternative sustainability-oriented economic indicators and policy mechanisms, including ecological efficiency, taxation strategies, and the IPAT equation. Furthermore, the study investigates the intersection of the digital economy and sustainable development, illustrating how technological advancements and data-driven solutions can not only strengthen environmental resilience but also foster a more conscious and responsible society. Through an analysis of global and local policy initiatives, this research underscores the pivotal role of regulatory frameworks in promoting sustainable economic growth. The findings indicate that while significant progress has been made, a more holistic and widespread integration of sustainability principles across both economic and digital domains is essential to cultivating a resilient and environmentally aware society. CZU: 504.06:[004.7+330.341.1]; JEL: Q01, Q5, O44