Directions of green transformation with inclusion of institutional and inequality perspectives

Green transformation is increasingly recognised as an important pathway toward environmentally sustainable and socially inclusive development. However, countries differ in their ability to balance environmental performance, economic development, and institutional effectiveness. This study examines green transformation across countries, with a focus on institutional quality and socio-economic inequality. It develops a multidimensional composite index using entropy weighting and the Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS). The index includes 63 indicators grouped into six domains: environmental performance, natural assets, quality of life, policy responses, socio-economic context, and institutional capacity. Diagnostic tests, including the Kaiser-Meyer-Olkin statistic and principal component analysis, support the suitability of the data. Ranking consistency across two periods (1990-2006 and 2007-2023) is assessed using Pearson and Spearman correlation tests, showing stable cross-country patterns. The findings indicate substantial variation in green transformation performance and point to the importance of institutional capacity, technological development, and inclusive policy frameworks in supporting sustainable transitions.