Theory and Practice of Sustainable Economic Development

1. Introduction

The concept of sustainable development has been in use for more than 40 years. Many critics have argued that the combined use of the terms “develop” and “sustain” is an oxymoron, although it remains a prevalent concept in global development discourse. The term “Sustainable Economic Development” refers to economic development that seek to balance economic growth with environmental and social sustainability. Since the 1970s, when the Club of Rome introduced the theory of “The Limits to Growth”, environmental quality has been regarded as a new prerequisite for economic progress. This shift has given rise to concepts such as the green economy, digital modernization, environmental conservation, renewable resources, and the fight against climate change as the mandatory components of economic development.

The Special Issue titled “Theory and Practice of Sustainable Economic Development” makes a broad contribution to advancing knowledge in the field of sustainability. This closing editorial aims not only to synthesize the key insights shared by our contributors but also to inspire further innovation. The journey toward sustainable economic development is not linear; it requires ongoing negotiation between theory and action, global ambition and local context, long-term vision and short-term needs. As we confront a rapidly changing climate, increasing waste, dwindling resources, widening inequality, and emerging technological disruptions, the urgency of translating sustainable development theory into practice has never been greater [1,2,3,4]. Strategies such as green finance, digital innovations, renewable energy, urban sustainability, and the green economy are essential for steering humanity toward a more balanced and sustainable future [4,5,6,7].

2. An Overview of the Published Articles

The first article, titled “Two-Way Causality Between Economic Growth and Environmental Quality: Scale in the New Capital of Indonesia”, investigates the reciprocal relationship between economic development and environmental quality, particularly in the context of Indonesia’s new capital city. Employing econometric analyses, the study reveals a bidirectional causality, indicating that economic growth influences environmental quality, and vice versa. This finding underscores the necessity for integrated policies that simultaneously promote economic advancement and environmental sustainability. The research highlights the importance of scale effects, suggesting that the size and scope of economic activities can significantly impact environmental outcomes. By focusing on a real-world case, the study provides empirical evidence supporting the theory that sustainable economic development must account for environmental constraints.

The second article, titled “Variability of the Level of Budget Expenditures on Social Insurance of Farmers in the Agricultural Policy of Poland After Accession to the European Union”, examines changes in Poland’s budgetary allocations for farmers’ social insurance following its EU accession. It highlights the significant role of the Agricultural Social Insurance Fund (KRUS) in providing social security to farmers, noting that despite Poland’s integration into the EU, the structure and funding of KRUS have remained largely unchanged. The study reveals that public expenditures on farmers’ social insurance have shown variability over the years, influenced by factors such as agricultural income levels, demographic shifts, and policy decisions. By analyzing budgetary trends and policy frameworks, the article underscores the challenges of aligning national agricultural social policies with broader EU standards. This research contributes to the discourse on sustainable economic development by emphasizing the need for adaptive social insurance systems that can respond to both domestic and international economic pressures.

The third article, titled “Sustainability Reporting in the University Context—A Review and Analysis of the Literature”, provides a comprehensive examination of sustainability reporting practices within higher education institutions (HEIs). By systematically reviewing the existing literature, the study identifies key trends, challenges, and opportunities associated with the implementation of sustainability reporting in universities. The authors highlight that while many HEIs have adopted sustainability reporting, there is significant variability in the depth, scope, and quality of these reports. This inconsistency underscores the need for standardized frameworks and guidelines to enhance the effectiveness and comparability of sustainability disclosures in the academic sector. By advocating for improved sustainability reporting in universities, the study suggests that HEIs can serve as exemplars and catalysts for sustainable development in society at large.

The fourth article, titled “The Efficiency of Financing Environmental Protection Measures in the Context of Ukraine’s Future Membership in the EU”, examines the relationship between environmental protection financing and pollutant emissions in Ukraine, Poland, and Romania. Utilizing statistical data from national and European sources, the study analyzes how investments, expenditures, and environmental tax revenues influence emission levels in these countries. Findings indicate that in Ukraine, pollutant emissions are most closely linked to investments in environmental protection; in Poland, to revenues from environmental taxes; and in Romania, to direct environmental expenditures. These insights highlight the varying effectiveness of financial mechanisms across different national contexts. The research underscores the importance of tailored financial strategies to enhance environmental outcomes, especially for countries like Ukraine aspiring to align with EU environmental standards.

The fifth article, titled “Green Human Resource Management: Practices, Benefits, and Constraints—Evidence from the Portuguese Context”, explores the role of Green Human Resource Management (GHRM) in promoting environmental sustainability within organizations. It highlights how GHRM practices—such as eco-friendly recruitment, training, and performance management—can foster a culture of environmental responsibility among employees. The study identifies key benefits of GHRM, including enhanced organizational reputation, increased employee engagement, and improved environmental performance. However, it also acknowledges constraints such as limited resources, lack of management support, and insufficient employee awareness that can hinder the effective implementation of GHRM practices. By providing empirical evidence from the Portuguese context, the article contributes to the broader discourse on sustainable economic development, emphasizing the importance of integrating environmental considerations into human resource management. It suggests that organizations adopting GHRM can play a pivotal role in achieving sustainability goals by aligning employee behaviors with environmental objectives.

The sixth article, titled “Research on Green Development Decision Making of Logistics Enterprises Based on Three-Party Game” by Chan He and Xu Xu, explores the dynamics of green transformation in logistics enterprises through an evolutionary game model involving three key stakeholders, namely logistics companies, government entities, and the public. The study analyzes how varying levels of government incentives and public preference for green consumption influence logistics companies’ strategic decisions towards environmental sustainability. Findings indicate that robust government supervision, combined with strong public demand for eco-friendly services, significantly motivates logistics enterprises to adopt green development strategies. Conversely, inadequate regulatory frameworks and low public engagement can deter companies from pursuing sustainable practices. By modeling these interactions, the research provides valuable insights into the mechanisms that drive or hinder green transitions in the logistics sector.

The seventh article, titled “Does Firm Size Matter for ESG Risk? Cross-Sectional Evidence from the Banking Industry” by Piotr M. Bolibok, investigates the relationship between bank size and Environmental, Social, and Governance (ESG) risk within the international banking sector. Utilizing a sample of 668 banks assessed by Morningstar Sustainalytics in 2021, the study employs both linear and non-linear regression analyses to explore this association. Findings reveal a U-shaped relationship, where ESG risk initially decreases with increasing bank size, due to better resource allocation for risk mitigation, but rises again beyond a certain size threshold, attributed to diseconomies of scale and operational inefficiencies. This nuanced understanding challenges the assumption that larger banks inherently possess lower ESG risks, highlighting the complexity of scaling sustainable practices. It underscores the importance of strategic planning in balancing expansion with sustainability objectives.

The eighth article, titled “Exploring Generation Z’s Investment Patterns and Attitudes towards Greenness” by Pašiušienė et al., investigates the investment behaviors and environmental attitudes of Generation Z, emphasizing their potential role in sustainable economic development. Through a comprehensive survey, the study reveals that while Generation Z exhibits a strong theoretical commitment to environmental sustainability, there is a noticeable gap between their intentions and actual investment behaviors. The research identifies various factors contributing to this discrepancy, including limited financial resources, lack of practical investment knowledge, and perceived risks associated with green investments. By categorizing respondents based on their potential investment behaviors and applying statistical inference methods, the study provides a nuanced understanding of the heterogeneity within Generation Z regarding sustainable investment. This analysis underscores the importance of targeted financial education and policy interventions to bridge the gap between environmental values and investment actions among young individuals.

The ninth article, titled “The Assessment of Green Business Environments Using the Environmental–Economic Index: The Case of China” by Liu et al., introduces a novel framework for evaluating the green business environment (GBE) across 30 Chinese provinces and municipalities. By integrating ecological and environmental protection indicators with sustainable development metrics, the study constructs a comprehensive GBE index comprising 5 primary and 30 secondary indicators. Utilizing principal component analysis, the research ranks each region’s green business environment, revealing significant disparities, with eastern provinces outperforming their central and western counterparts. This regional imbalance underscores the need for tailored policy interventions to promote equitable sustainable development across China. The study’s methodology offers a replicable model for other nations aiming to assess and enhance their green business environments.

The final article, titled “Assessment of Green Banking Performance” by Giedrė Lapinskienė and Irena Danilevičienė, evaluates the effectiveness of green banking initiatives within the financial sector. Recognizing the increasing internal and external pressures on financial institutions to adopt environmentally responsible practices, the study addresses the challenge of accurately measuring the true extent of banks’ commitment to green operations. The authors develop a comprehensive assessment framework that integrates various indicators to evaluate green banking performance. By applying this framework, the study provides insights into the current state of green banking and identifies areas requiring improvement. It underscores the need for transparent and standardized evaluation methods to ensure accountability and drive meaningful progress in green banking practices.

3. Conclusions

Sustainable economic development is a multifaceted concept that requires a holistic approach to balance economic, environmental, and social goals. While significant progress has been made, ongoing challenges demand continued innovation, effective policies, and active public participation to achieve truly sustainable development. These studies collectively emphasize the critical need for integrated and context-specific policy frameworks that align economic growth with environmental sustainability. Policymakers should prioritize tailored financial instruments and incentives that enhance environmental protection investments while fostering accountability in green banking and corporate practices. Recognizing the pivotal role of organizational behavior and stakeholder engagement, policies must encourage green human resource management and incentivize eco-friendly decision-making in industries such as logistics and finance. Addressing the social dimensions, targeted support for vulnerable groups—such as farmers—and initiatives that empower younger generations through education and sustainable investment opportunities are essential to inclusive development. Finally, improving transparency through standardized sustainability reporting in educational institutions and enterprises will strengthen progress monitoring and promote long-term sustainable economic development.