Exploring the Interactions and Impacts of Sustainability Policies in OECD and EU Economies

This study explores the interrelationships among sustainable policy components of the sustainable governance indicators in OECD and EU economies, employing a hybrid analytical framework integrating expectation maximization clustering, Bayesian network‐tree augmented naïve Bayes classification, and structural equation modeling. The findings reveal significant direct and indirect effects, underscoring the interconnected nature of sustainable policy components. Health emerges as foundational, directly enhancing education and indirectly improving labor market outcomes. Environmental policy fosters economic stability and indirectly influences labor markets, while education drives workforce adaptability and innovation capacity. Global social inequalities and environmental protection significantly impact equity and innovation pathways. These results validate theoretical perspectives, including ecological modernization and human capital theories, emphasizing system‐wide interdependencies. By leveraging these synergies, policymakers can design integrated strategies to advance sustainability goals, fostering resilience across economic, social, and environmental dimensions. This research provides key insights to inform evidence‐based policymaking for achieving inclusive and sustainable development.