Green Economy and Greenwashing: A Critical Literature Review on the Paradoxes of Sustainable Transition

This article provides a critical literature review of the green economy and greenwashing, examining their conceptual foundations, evolution, and inherent tensions within the contemporary sustainability transition. Drawing on interdisciplinary academic sources from economics, management, environmental studies, and public policy, the article synthesizes theoretical, empirical, and normative contributions to clarify how the green economy has been framed as a pathway toward sustainable development. At the same time, it highlights greenwashing as a structural challenge that undermines the credibility and effectiveness of this transition. The analysis shows that conceptual ambiguity, weak regulatory frameworks, and fragmented reporting standards have facilitated the proliferation of symbolic sustainability practices that do not correspond to substantive environmental performance. The article also identifies key research gaps, including the need for greater conceptual standardization, longitudinal empirical evidence, and deeper analysis of organizational and institutional drivers of greenwashing. Finally, emerging research lines related to digital technologies, ESG governance, regulation, and sustainable finance are discussed, offering directions for advancing more credible and transformative green economy practices.