European International Journal of Multidisciplinary Research
and Management Studies
60
https://eipublication.com/index.php/eijmrms
TYPE
Original Research
PAGE NO.
60-62
DOI
OPEN ACCESS
SUBMITED
25 October 2024
ACCEPTED
19 December 2024
PUBLISHED
09 January 2025
VOLUME
Vol.05 Issue01 2025
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
The Role of the "Green
Economy" In Ensuring
Sustainable Development
Yormatov Sharofiddin
Doctor of Philosophy in Economics, Associate Professor, Uzbekistan
Nozima Normurodova
2nd year student of Termez University of Ecnomy and Service, Termez,
Uzbekistan
Abstract:
Over the past few years, the concept of a
green economy has been recognized as a vital
mechanism for achieving economic progress in both
developed and emerging nations. This study aims to
analyze the role of the green economy in Indonesia's
economic expansion based on an Islamic economic
perspective. The research methodology employs library
analysis and content assessment. The data sources
utilized in this study were gathered from previous
research, articles, regulations, and reference literature
pertaining to green economics, economic growth, and
Islamic economics. The results denote that the green
economy bears tremendous potential to support
economic advancement in Indonesia under an Islamic
economic lens. By applying key tenets such as the
obligation to safeguard nature and the judicious
utilization of resources, Indonesia can cultivate a
development paradigm that is sustainable and
beneficial across all societal strata. This research
recommends that private and public sector entities
continue endorsing and integrating green economy
principles moving forward. Specifically, Islamic financial
instruments can be directed toward eco-friendly
investments like renewable energy, sustainable
agriculture, green technologies, and environmentally-
conscious infrastructure. Such participations from
Islamic economics in "greening" the economy signify
promising trajectories aligning ethical and sustainable
finance. As the world grapples with urgent ecological
crises, policy frameworks in Indonesia should incentivize
collective societal and commercial transitions toward
greener fiscal practices. Islamic finance with its
underlying moral philosophy can potentially transform
finance itself into an apparatus upholding both
economic and environmental welfare.
European International Journal of Multidisciplinary Research
and Management Studies
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European International Journal of Multidisciplinary Research and Management Studies
Keywords:
Green Economy; Economic Growth; Islamic
Economics.
Introduction:
The detrimental impacts of negative
economic expansion on the natural environment and
scarce natural resources have emerged as a global
concern. Frequent topics of discussion related to
sustainable development include the high carbon
emissions produced by pollution, overutilization of
natural resources, and social inequity (Soehardi, 2022).
In recent years, the concept of a "Green Economy" has
gained traction across various forums. Some may
assume a Green Economy is one where the economy
itself becomes environmentally friendly. However, a
Green Economy is specifically one that does not
ecologically damage the environment (Iskandar &
Aqbar, 2019). There are three key principles: low
emissions, inclusive society, and efficient resource use.
Essentially, a Green Economy seeks to eliminate the
harmful effects of economic growth on environmental
sustainability and natural resource availability.
Succinctly put, a Green Economy has low carbon
emissions, preserves natural resources, and promotes
social justice (Iskandar et al., 2021). This green
economy concept arises because human behaviour
tends to be profit-oriented compared to sustainable-
oriented. Economy by following the current situation
that is demanded fast-paced. Of course, this will make
humans have the urge to use all means without having
concern for environmental sustainability, of course, to
get big profits (Alatas et al., 2023). In most of the
production activities in the current industry, many
need to use natural resources more wisely. This is not
balanced with a form of conservation. If this happens
continuously, it will undoubtedly threaten the
sustainability of the natural environment and humans
(Houssam et al., 2023). Maintaining a sustainable
economic environment that ensures the well-being of
current and future generations of Indonesians should
be a key priority for policymakers, with a focus on
economic activities that generate products and jobs.
Thus, the notion of a "green economy" is imperative to
support the welfare and equity of domestic market
participants so they can develop the national
economy. The purpose of a green economy is to
balance improving people's prosperity with sustaining
the
economy.
Therefore,
any
micro
and
macroeconomic development pursued by the
government must integrate the tenets of a green
economy (Anwar, 2022). There are five main principles
of green economy-oriented economic growth. First, it
must enrich the whole community. Second, it must
promote equality across generations. Third, it must
maintain, regenerate, and invest in natural resource-
based activities. Fourth, it should support sustainable
levels of consumption and production. Fifth, it requires
a robust, integrated, and accountable system (Chaaben
et al., 2022). A green economy needs to tackle the
overall issue of economies of scale by considering
materials and energy. GDP can continue growing if
production is limited to green products. The "green
economy" concept is valuable insofar as it spurs
policymakers, economists, and industry players into
critical discourse with other stakeholders, comparing
alternative developmental paths. Such comparisons
should evaluate economic criteria along with social,
political, cultural, and ecological sustainability metrics.
Economic policies and practices steer sustainable
growth models since they drive the key problems of
overproducing waste and overexploiting natural
resources, as well as the primary determinants of
prosperity in jobs, education, and health. Creating an
ecologically sustainable future necessitates a collective
societal
pledge
toward
greener
employment,
production, consumption, energy, transportation,
agriculture, waste management, water supply and
sanitation, and disease prevention and healthcare. Not
just one area but all are explicitly interrelated as
dynamic socioeconomic and ecological frameworks.
Authentic and innovative green economy perspectives
and actions could form a new conceptualization of
"economy" that is essentially centered on sustainability
and social equity (Anwar, 2022). Economic growth is a
crucial strategic domain that must be continuously
cultivated and expanded since it impacts many people's
livelihoods. However, the rising demand for economic
development today poses quite a dilemma regarding
the discord between economic progress on one hand
and preserving nature and the environment on the
other. Deteriorating natural resource quality, extensive
environmental destruction, pollution, flooding, and
expanding critical land are evidence of the
consequences of economic expansion that does not
align with nature and environmental conservation
(Suhada & Setyawan, 2016). If viewed from an Islamic
point of view, protecting nature (environment) so that
it is maintained is a must for every human being.
Humans as caliphs (representatives of God) on earth
should preserve and develop nature (earth) which is the
dwelling place of humanity, says Allah in the Qur'an,
which means... He has created you from earth (soil) and
made you his prosperity (QS Hud: 61). The verse above
explains that the function of humans as God's caliph is
to prosper the earth (nature closest to humans) using
the best charity or creative work. Empirical evidence
shows that a green economy can influence economic
growth, employment, and poverty rates in countries of
similar economic and social standing based on the
different economic policies and structural adjustments
European International Journal of Multidisciplinary Research
and Management Studies
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European International Journal of Multidisciplinary Research and Management Studies
adopted during this policy transition process (Houssam
et al., 2023).
The integration between green economy principles
and Islamic economics in Indonesia has yet to be
extensively researched. However, studies mapping the
challenges and opportunities of joint implementation
are required to formulate well-targeted policies
(Kristianto, 2020). Additionally, the strategic role of
Sharia financial instruments such as zakat, waqf, and
Sukuk to promote green economic growth has yet to
be explored. Empirical research on the impact and
outcomes of applying these tools can provide valuable
insights for policymakers and Islamic finance
practitioners in Indonesia (Siri, 2023). On the
regulatory side, the design of green financial policies
and regulations aligned with Sharia principles is still
lacking despite the pressing need to guide sustainable
finance transitions domestically. Hence, applied
research on formulating green financial policies within
a Sharia framework is crucial (Hassan et al., 2020).
Based on the description of the problem above, the
researcher intends to conduct research titled "The Role
of Green Economy in Economic Growth in Indonesia
Based on an Islamic Economic Perspective."
Various studies have delved into analyzing policies and
metrics to transition toward a greener economy.
Utilizing an Islamic economic framework, a “green
financial policy model” entailing financial instruments,
regulatory reforms, public incentives and investments
to drive eco-conscious, shared and inclusive
prosperity. Formulated priority areas and performance
indicators of a green economy guided by Islamic
philosophies of environmental stewardship. On the
industry level, The roles of Islamic social finance tools
like zakat and waqf in supporting renewable energy
and sustainable agriculture - strategic green economy
sectors - in Indonesia. Green economy objectives like
clean energy targets and GHG emission reductions.
Such studies collectively underscore the societal,
commercial and governmental efforts required to
transition current economic structures into an
integrative, equitable and eco-friendly growth
paradigm.
Economic growth remains a pivotal research domain
assessing
national
productivity
and
welfare
trajectories. The World Bank (2018) defines it as an
upsurge in a country’s productive capacity as
measured through Gross Domestic Product (GDP)
estimates.
Recent
perspectives
posit
more
multidimensional frameworks, gauging outputs as well
as sustainability factors. For instance, the Inclusive
Development Index devised by the World Economic
Forum (2018) measures economic expansion via not
just GDP but also metrics of living standards,
environmental sustainability, and equality. Various
studies have scrutinized determinants of equitable and
sustained growth models. Utilizing an endogenous
growth approach, Adame García et al., (2017) examined
the economic and social returns of public infrastructure
investments across European countries. Investigated
health and demographic dynamics as key inputs driving
economic progression in developing economies. On the
environmental aspect the role of sustainable utilization
of natural assets like forests and aquatic systems in
fostering green growth trajectory especially in emerging
countries. Such analyses reveal a scope for context-
specific and multidimensional policy interventions that
calibrate both productivity enhancements and human
well-being improvements.
REFERENCES
Adame García, V., Meseguer, J. A., Ortiz, L. P., & Tuesta,
D. (2017). Infrastructure and economic growth from a
meta-analysis approach: do all roads lead to Rome?
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Research,
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