Green Fiscal Policy and Sustainable Economic Transformation: A Systematic Literature Review and Bibliometric Analysis

Abstract

This study investigates Green Fiscal Policy (GFP) as a strategic tool for promoting sustainable economic transformation through a Systematic Literature Review (SLR) approach combined with bibliometric analysis. By examining 83 articles indexed in the Scopus database up to July 2025, the research highlights publication trends, geographic distribution, thematic focus, and key contributions to GFP discussions. The findings reveal a notable rise in publications after the 2015 Paris Agreement, with China leading as a major source of literature, while contributions from developing countries remain limited. The analysis also identified six key pillars of GFP success: fiscal accountability, energy transition, environmental data integrity, promotion of green innovation, cross-sector approaches, and integration of Environmental, Social, and Governance (ESG) frameworks. These results reaffirm GFP's role as a catalyst for fiscal reform that can align economic growth with environmental sustainability. This research makes a theoretical contribution to the environmental economics literature and offers practical recommendations for developing adaptive, inclusive, and context-specific green fiscal policies, especially in developing countries.