Ecological Boundaries of Green Keynesianism

Abstract

To stop climate change, we must drastically cut greenhouse gas emissions. The current reduction rate is inadequate, accelerating climate change. This calls for a drastic shift in economic policy. Given the effectiveness of aid programs applied during the COVID-19 pandemic, some scholars believe that a unique opportunity has arisen to fundamentally change the paradigm and enact new economic policies to address ecological problems. This includes merging Keynesian fiscal policy with environmental objectives, known as Green Keynesianism, a key component of the Green New Deal. This article evaluates if Green Keynesianism, a variation of traditional economic policy focused on growth, is genuinely eco-friendly and can aid in greening the economy. It explores the fundamental characteristics of Green Keynesianism and reviews criticisms from ecological economists. The paper first defines Green Keynesianism and its Green New Deal role. It then debates ecological objections before presenting counterarguments.