The Synergy of Green Growth, Clean Energy, and Foreign Direct Investment in Achieving Sustainable Development

ABSTRACT Sustainable development and economic growth have long been recognized as important goals for many nations worldwide. Efforts are being made to achieve these goals through various initiatives, including promoting green growth, green technology, clean energy, and foreign direct investment. This study examines the impact and synergy of these factors on the sustainable development and economic development of the 38 member states of the Organization for Economic Co‐operation and Development (OECD) from 2000 to 2020. Empirical analysis is conducted using advanced econometric methodologies. The results explain that green growth, technology, tax revenue, and clean energy promote sustainable and economic development in these countries, with few exceptions. The measure of sustainable development is based on the progress made toward accomplishing 17 SDGs' objectives, expressed as a percentage. The highest percentage reflects the highest level of achievement and vice versa. Similarly, human development, measured as mean years of schooling and foreign direct investment, has negatively affected sustainable and economic development. The negative effect of human development is probably because a very narrow definition has been used for human development because of data constraints. OECD countries can pursue several policy measures to promote sustainable and economic development, including green growth, technology advancements, effective taxation strategies, and transition to clean energy. By implementing these policies, countries can enhance their progress toward the SDGs while improving human development indicators. Study limitations and future research directions are discussed.