Greenwashing as an institutional trap

Abstract

Subject. This article considers the mechanisms for regulating harmful transformations that arise in the course of cyclical changes and slow down the achievement of sustainable development goals. Objectives. The article aims to determine the position of greenwashing in the institutional economic theory. Methods. For the study, we used the comparative and causal analyses. Results. The article finds that greenwashing is characterized by an increase in the impact on economic systems. It is necessary to form an alternative institution to reduce the negative long-term consequences of greenwashing. Conclusions. Being an institutional trap, greenwashing has a negative impact on the relationship between economic agents at all levels, hindering the achievement of sustainable development goals and the real greening of the economy.