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THE ESSENCE AND CONTENT OF THE ROLE OF THE GREEN ECONOMY IN THE
DEVELOPMENT OF SMALL BUSINESS ENTERPRISES
Akbarov Akramjon Ibroximjonovich
University of BUSSINES and SCIENCE
“Green economics” teacher
Abstract:
This article discusses the essence and content of the role of the green economy in the
development of small business enterprises. The green economy is analyzed as a complex of
relationships between the concepts of economic growth, social equality, sustainability, and
environmental safety. The priority directions of Uzbekistan's strategy for transition to a green
economy for 2019-2030 and the mechanisms for its implementation are evaluated. The
importance of environmental taxes and their role in environmental protection are studied, and
proposals for the development of a green economy are presented.
Key words:
green economy, sustainable development, environmental safety, energy efficiency,
renewable energy sources,
environmental taxes, carbon emissions, climate change, environmental protection.
INTRODUCTION
Today, issues such as environmental safety, environmental protection and sustainable
development are becoming increasingly relevant on a global scale. As a result of Global climate
change,dwindling natural resources, and increasing environmental concerns, there is a need to
move to a green economy. A green economy is an activity based on the development of material
and spiritual benefits necessary for the life and health of eople, in close connection with the
production and service industries, while maintaining the environment and biodiversity as a
whole. In a complex, uncertain and rapidly changing situation on a global scale, environmental
protection and the development of state and social services are becoming an urgent issue.
Improve the production potential and efficiency of society, the level of competitiveness, provide
them with modern technologies, as well as improve the quality of life, real income and the
formation of a new infrastructure that improves the living environment requires a transition to a
green economy. According to an analysis of the current state of the problem under consideration,
the concept of the green economy was put forward by the United Nations after the global
financial crisis of 2009, which is still growing in importance today. 2015 Sustainable
Development of countries around the world according to the action strategy designed before
2030 and adopted 17 Sustainable Development Goals within it. These goals are aimed at
addressing various social needs in the world, such as ending poverty, providing health, social
protection and creating new jobs, protecting the environment and combating the climate crisis.
Thus, the goals of Sustainable Development imply the formation of harmonious and effective
relations between environmental and socio-economic systems. The green economy is an
economic system, the main purpose of which is to preserve the ecological stability of the planet,
preserve and enrich natural and physical capital.
REVIEW OF THEMATIC LITERATURE
The concept of a green economy is seen in modern economic thought as an approach aimed at
ensuring a balance between environmental sustainability and economic growth. According to the
definition given by the UN Environment Programme (UNEP), a green economy is an economic
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system that promotes the well-being of people and promotes social equality, while reducing
environmental risk and environmental shortages. In this approach, the rational use of resources,
the reduction of waste and the introduction of environmentally friendly technologies stand out as
priorities. Many scientists have thoroughly analyzed the theoretical foundations of this concept.
In particular, Pearce, Marcandea and Barbier based the role of natural capital in the formation of
the green economy in the work “Green Economy Blueprint”. They stressed the need to take into
account the value of the environment when making economic decisions. These views largely rely
on the theory of "sustainable-scale economics" put forward by Daley, on which economic
activity must be conducted within environmental constraints. In international practice, policies
based on the principles of the green economy were successfully introduced in the states of the
European Union, in particular in Germany and the Netherlands. According to OECD
(Organisation for Economic Co-operation and Development) Research, green taxes and
subsidies serve as an effective tool in maintaining environmental balance. Research by Dinda,
Smart, and Rogers suggest that investments aimed at improving energy efficiency and reducing
carbon emissions are not only environmental but also economic benefits. At the national level,
Uzbekistan is also receiving important documents on the way to the transition to the green
economy. In particular, on the basis of presidential decisions and strategic programs, measures
are being implemented to develop renewable energy sources, improve energy efficiency and
recycle waste. National initiatives aimed at ensuring environmental sustainability are expanding
through the projects of the statistical agency of the Republic of Uzbekistan, the Ministry of
energy and the green space. M. Kholmominov and S. Local scientists such as Yusupov studied
the institutional foundations of the development of the green economy in the conditions of
Uzbekistan, and the importance of the territorial approach in their research is highlighted. So, the
analysis of the literature shows that the green economy is not just an environmental problem, but
a comprehensive economic strategy. It is a system that serves to introduce advanced technologies,
improve the efficiency of resource use, and promote social justice.
RESEARCH METHODOLOGY
In this study, information related to the green economy was obtained from reports from
international organizations (UNEP, OECD), Uzbek State Statistical bases and scientific articles.
Comparative and content analysis methods were used in the analysis and development trends
were evaluated based on theoretical views and practical applications.
ANALYSIS AND RESULTS
The EU states and the world community have adopted a strategy for
2021-2030 called The New decade movement: accelerating sustainable and green economic
change. This strategy defined the main directions of the transition to a green economy (Table 1).
Table 1. The main features of the green economy and its advantages
Features of the green economy
Advantages
Renewable energy use
Reduction of harmful gases released into the atmosphere,
increased energy security
Resource savings
Sustainable consumption of natural resources, reduction in
production costs
Environmentally
friendly
technologies
Reduction of environmental pollution, improvement of Public
Biodiversity conservation
Health Preservation of natural balance, increased agricultural
stability
Creating "green" jobs
Growth of economic activity, improvement of social equality
Source: compiled by the author based on the results of the study.
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To research the essence, concept and principles of development of the green economy, it is
necessary to consider the following main issues: to clarify the conceptual foundations of the
green economy, its goals and objectives. Analysis of the priorities of Uzbekistan's strategy for
the transition to the green economy. Assessment of the role of environmental taxes in
Environmental Protection.
Development of proposals for improving the mechanisms for the development of the green
economy. Strategy for the transition to a green economy in Uzbekistan. In 2019-2030, the
following priorities were set out in Uzbekistan's strategy for transition to the green economy:
Improving energy efficiency in the national economy. According to the first priority set out in
the strategy, the task is to double energy efficiency in the base sectors of the national economy
by 2030. By modernizing the infrastructure of industrial enterprises, introducing green and
environmentally friendly technologies to this goal it is planned to increase energy efficiency by
20 percent. Diversification of energy resource consumption and the use of renewable energy
sources. Diversification of energy resource consumption as well as the use of renewable
resources is a second priority in the transition to a green economy in Uzbekistan. The Line
provides for the use of renewable energy resources, the construction of green buildings and the
electrification of Surface transport parks. Adaptation to climate change, improving the efficiency
of natural resource use and maintaining biodiversity. As a third direction, adaptation to climate
change, rational use of Natural Resources and preservation of biodiversity are established.
Including the task of effective use of Water Resources, prevention of water loss, concreting
irrigation networks, implementation of drip irrigation technologies on an area of 1 million
hectares and increasing productivity in these areas by 20-40 percent. Development of
mechanisms for the development of the green economy. In this direction, measures have been
established to normalize the release of carbon emissions into the atmosphere, establish a carbon
trading system, introduce green technologies and improve the regulatory framework for the
transition to a green economy. The integration of green economy principles into education and
science, as well as the support of green investment, has also been considered among the
important tasks. Environmental taxes play an important role in the transition to a green economy.
Environmental tax efficiency has been analyzed based on the idea of a “Double dividend” first
put forward by Pearce on the issue of an environmental-related tax system. Carbon and energy
taxes serve to form a more equitable and efficient tax system over time. An econometric analysis
of environmental taxes in EU states in 2020 showed: employment increased by 3%, GDP
increased by 2%, and carbon emissions decreased by 5%. This situation has produced a
significant “double dividend” effect for Europe. Also, the ratio of environmental-related tax
revenues to GDP in Mexico ranges from 0.06% in 2014 to 4.17% in 2020 increases have been
observed. In the case of EU countries such as Denmark, Finland, Norway, the United Kingdom,
Germany and the Netherlands, however, environmental taxes grew from 1.8 percent in 2014 to
3.1
percent
by
2020 (Table 3). Table 1. Types of environmental taxes in EU states and their practices
State
Type
of
environmental tax
Main features
Denmark
Carbon tax
Introduced to industrial and energy enterprises,
accounts for 0.3% of GDP
Finland
Energy tax
Encourages renewable energy, accounting for 2.1% of
GDP
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Germany
Transport tax
Differentiated tax on car emissions, 0.5% of GDP
Great Britain Landfill tax
Aimed at reducing emissions, 0.2% of GDP
Holland
Water pollution tax
The industry regulates wastewater, accounting for 0.6% of
GDP
Source: compiled by the author based on EU data.
Currently, the national economy is intensively consuming natural capital at a priority level,
which in turn leads to environmental pollution, water shortages. At enterprises, 80-85% of the
means of production are outdated, one unit is spent in excess of the energy norm in the
production of gross product. In the development of the green economy in Uzbekistan, there are
the following problems: shortage of Water Resources. While there are 8,000 water wells in
Uzbekistan, 2,600 have dried up. It is necessary to improve the efficiency of water use and
improve irrigation systems using water-saving technologies.Degradation of land resources.
Uzbekistan has 20.3 million hectares of land, of which 3-4 million hectares are rural busy with
agricultural crops. In recent years, land desertification and desiccation (Water Escape) have
caused 70-80 percent of the land to become saline and productivity to decline. For example,
cotton yields on 1 hectare of land decreased by 17-20 percent, and wheat by 13-14
percent.Negative impact of the Transport sector. Although the development of the Transport
industry has improved infrastructure, it is increasing the release of parnik gases into the
atmosphere, negatively affecting climate change and harming the health of the population. The
following proposals for the development of the green economy in Uzbekistan have been
developed: improvement of environmental taxes. In 2023-2025, it is necessary to carry out
reforms in the environmental taxation system in the Fergana region, to expand the environmental
tax components. Including:
– when using traditional energy,
- to the amount of carbon leaving vehicles,
- activate or bury waste in landfills,
- activating plastic items,
- it is proposed to introduce a tax on cases of environmental pollution.
Development of renewable energy sources. It is necessary to expand the use of sources such as
the sun, wind and bioenergy, popularize them and improve the mechanisms of support.
Improving water resource management. It is necessary to modernize irrigation systems,
introduce drip irrigation technologies, ensure the rational and saving use of water. Conservation
of land resources. It is necessary to take measures to improve land reclamation, irrigation and
reclamation, use of local fertilizers, establish a crop rotation system, prevent land degradation
and increase the average yield by 20-25 percent. Ecologization of the Transport sector. It is
being released into the atmosphere through the development of the public transport system, the
promotion of electric vehicles, the construction of bicycle lanes and the improvement of the
necessary infrastructure for pedestrians it is necessary to reduce the amount of harmful
The green economy is now recognized as one of the most important factors in sustainable
development. It includes priorities such as improving human well-being, promoting social justice,
and protecting the environment. In the process of moving to a green economy, it is necessary to
pay special attention to the following areas:
- extensive use of renewable energy sources;
- rational management of water and land resources;
- environmental stabilization of the transport system.
Environmental taxes also appear as an important instrument in the transition to a green economy.
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European experience shows that properly designed environmental tax policies have a positive
impact not only on environmental protection but also on economic growth and employment
growth. For the development of the green economy, an integrated approach is necessary: to
improve the legal and regulatory framework, attract investments, increase scientific and
technical potential, introduce innovative technologies and form the environmental consciousness
of the population. These measures ensure a successful transition to the green economy in
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