Green industrial policy as an enabler of the transition to sustainability: challenges, opportunities and policy implications for developing countries

Phemelo Tamasiga (), Hope Mfuni, Helen Onyeaka () and El houssin Ouassou
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Phemelo Tamasiga: Am Depenbrock
Hope Mfuni: Reserve Bank of Malawi
Helen Onyeaka: University of Birmingham
El houssin Ouassou: Mohammed V University in Rabat

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 1, No 11, 355-376

Abstract: Abstract The transition to green industrial policies has become a global imperative as countries strive to achieve sustainable economic growth parallel to a reduction of environmental externalities. Developing countries face unique challenges in adopting green industrial policy, as they are latecomers to industrialization and must balance economic growth with stringent environmental controls. This study aims to gain insights into the progression of publications on green industrialization in developing countries and identify key themes and research gaps. By using a systematic-cum-bibliometric review, the study identified publication trends, influential articles and research themes. The analysis of the merged dataset of 539 articles from Scopus and Web of Science databases revealed a notable increase in publications from 2014 to 2022, driven by the momentum of the Paris Climate Agreement. China emerged as a leading country in green industrial policy research, followed by the UK and the USA. The University of Sussex and Tsinghua University demonstrated significant contributions to the field. We identified six themes which offer valuable insights for adopting environmentally friendly policies while fostering economic growth and inclusivity. Targeted subsidies, technological innovation and collaboration are vital to accelerate the transition to green industrialization. Research gaps remain particularly in integrating the informal sector into green economies, harmonizing climate policies with international trade rules and understanding the impact of digital technology on green industrialization in developing countries. The findings have crucial implications for policymakers, researchers and stakeholders aiming to promote green industrial policies and sustainable development. The study calls for further research to expand the scope of data sources beyond Scopus and Web of Science to Google Scholar and Dimensions to enhance the breadth of knowledge in this field.

Keywords: Green industrial policy; Sustainable development; Low-carbon emissions; Renewable energy; Green economic growth; Circular economy; Bibliometric review; Systematic review (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-023-03952-0

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