The Methodological Approach to Assessing Trends in the Development of the Green Economy of EU Countries
Varvashenko V. A.

Varvashenko, Vladyslav A. (2025) “The Methodological Approach to Assessing Trends in the Development of the Green Economy of EU Countries.” The Problems of Economy 4:14–23.
https://doi.org/10.32983/2222-0712-2025-4-14-23

Section: World economy and international relations

UDC 330.15:338.1:504:332.1

Abstract:
The article is devoted to developing a methodological approach for assessing trends in the development of the green economy of EU countries, which, unlike existing approaches, is based on forming a set of component indicators by extracting general methodological indicators of the conception of sustainable development and performing an integral assessment (overall integral indicator for the period 2018–2024). The strategic outcome of applying this approach is the analysis and assessment of the integral development index of the green economy of EU countries, which forms the basis for modeling strategic trends in the development of the green economy, using methods of cluster, factor, regression, and scenario analyses. The feasibility of creating an integral index as a tool for comprehensively assessing the level and dynamics of the development of the green economy is substantiated, based on the systematic consolidation of economic-resource, environmental, social, institutional, and innovative components. A critical analysis of contemporary international indices and indicator systems used to assess green development has been conducted, revealing their methodological limitations related to the fragmented coverage of components, temporal data inconsistencies, and limited suitability for comparative analysis within the EU. A structure for a composite index has been proposed, based on stepwise normalization of indicators, the formation of sub-indices, and their aggregation using the geometric mean. The methodological approach was tested for European Union countries over the period 2018–2024, which allowed the identification of differences in levels of green economy development and structural changes in the dynamics of its components. The results obtained were used for dynamic analysis, rapid diagnostics, and forecasting trends in green economy development in the medium term. The practical significance of the study lies in the potential application of the proposed methodological approach for the analytical substantiation of managerial decisions and strategic directions for the development of the green economy in EU countries.

Keywords: development, green economy, the EU, integral index, methodological approach, evaluation, trends, economic-resource component, environmental component, social component, institutional component, innovation component.

Fig.: 5. Tabl.: 3. Formulae: 3. Bibl.: 18.

Varvashenko Vladyslav A. – Postgraduate Student, Department of International Economic Relations and Logistics, V. N. Karazin Kharkiv National University (4 Svobody Square, Kharkіv, 61022, Ukraine)
Email: v.varvashenko@karazin.ua

List of references in article

Circular Economy Monitoring Framework. European Commission / Eurostat. https://ec.europa.eu/eurostat/web/circular-economy
Dovgal O. A. (2025). Features and trends of the digitalization process in the development of the green economy. Ekonomichnyi prostir, 206, 57–63. https://doi.org/10.30838/EP.206.57-63
Dovhal O. A. (2025). Ekonomichna polityka perekhodu do zelenoi ekonomiky v umovakh tsyfrovizatsii [Economic policy of transition to a green economy in the conditions of digitalization]. Ekonomichnyi prostir, 199, 26–31. https://doi.org/10.30838/EP.199.26-31
Dovhal O. A. (2025). Inkliuzyvne zrostannia yak novyi kryterii zelenoi ekonomiky: teoriia ta instrumenty analizu [Inclusive growth as a new criterion of the green economy: theory and analysis tools]. Biznes Inform, 4, 42–50. https://doi.org/10.32983/2222-4459-2025-4-42-50
Eco-Innovation Index (EU Eco-Innovation Index). The European Environment Agency. https://www.eea.europa.eu/en/analysis/indicators/eco-innovation-index-8th-eap
Energy Transition Index (ETI). World Economic Forum. https://sft-framework.unctad.org/key-performance-indicator/energy-energy-transition-index-eiti-score
Germanwatch, NewClimate Institute & CAN International. Climate Change Performance Index (CCPI). https://ccpi.org/
Global Green Growth Institute (GGGI). Green Growth Index (GGI). https://greengrowthindex.gggi.org/
OECD. OECD Green Growth Indicators. https://www.greenpolicyplatform.org/tools-and-platforms/oecd-green-growth-database
Polivantsev A. S. (2025). Osoblyvosti rozvytku «zelenoi ekonomiky» v krainakh YeS ta v Ukraini v konteksti tsyfrovoi transformatsii [Features of the development of the "green economy" in the EU countries and in Ukraine in the context of digital transformation]. Ekonomichnyi prostir, 205, 200–207. https://doi.org/10.30838/EP.205.200-207
Polivantsev A. S. (2025). Perekhid do «zelenoi ekonomiky» v umovakh hlobalnoi tsyfrovizatsii: dosvid yevropeiskykh krain dlia Ukrainy [Transition to a "green economy" in the conditions of global digitalization: the experience of European countries for Ukraine]. Prychornomorski ekonomichni studii, 94, 56–60. https://doi.org/10.32782/bses.94-8
Prokhorova V. & Us V. (2024). «Zelena» enerhetyka v kontseptsii tsyrkuliarnoi ekonomiky: vidnovlennia ta vykorystannia ponovliuvanykh dzherel u nestabilnykh umovakh ["Green" energy in the concept of circular economy: restoration and use of renewable sources in unstable conditions]. Adaptyvne upravlinnia: teoriia i praktyka. Seriia Ekonomika, 18 (36). https://doi.org/10.33296/2707-0654-18(36)-05
Prokhorova V. V., Us Yu. V. & Yukhman Ya. V. (2024). Osoblyvosti upravlinnia taryfoutvorenniam u konteksti «zelenoi» ekonomiky [Features of tariff management in the context of the "green" economy]. Problemy ekonomiky, 2, 53–60. https://doi.org/10.32983/2222-0712-2024-2-53-60
Sustainable Competitiveness Index. SolAbility. https://solability.com/the-global-sustainable-competitiveness-index#downloads
Sustainable Development Solutions Network. SDG Index (Sustainable Development Goals Index). https://www.sdgindex.org/
World Bank. Adjusted Net Savings (Genuine Savings). https://databank.worldbank.org/source/environment-social-and-governance-(esg)-data
Yale University & Columbia University. Environmental Performance Index (EPI). https://epi.yale.edu/
Zaitseva A. S. & Polivantsev A. S. (2025). Transformatsiia poniattia «zelena ekonomika» v umovakh hlobalnoi tsyfrovizatsii [Transformation of the concept of "green economy" in the conditions of global digitalization]. Aktualni pytannia ekonomichnykh nauk, 16. https://doi.org/10.5281/zenodo.17373261