THE ROLE OF GOVERNMENT POLICIES IN SUSTAINABLE ECONOMIC DEVELOPMENT

Abstract

Sustainable economic development requires a balanced integration of economic growth, social equity, and environmental preservation. Government policies play a pivotal role in steering nations toward this goal by shaping the regulatory frameworks, fiscal strategies, and institutional mechanisms that guide development. This paper explores how well-designed government interventions—such as green taxation, subsidies for renewable energy, public investment in sustainable infrastructure, and environmental regulations—can stimulate inclusive and environmentally responsible economic progress. It also examines the importance of transparent governance, policy coherence, and stakeholder participation in implementing effective sustainability policies. By analyzing case studies and global best practices, the study highlights the significance of adaptive and forward-looking policymaking in achieving long-term sustainability objectives. The findings underscore the necessity of a holistic policy approach that aligns economic incentives with environmental and social priorities.