The Global Quest for Green Growth: An Economic Policy Perspective

Abstract

Economic growth has historically been the main driver of rising greenhouse gas (GHG) emissions. To achieve steep emission reductions, the world would have to either decouple global GHG emissions from gross domestic product (GDP) at an unprecedented pace or face deep cuts to GDP. The so-called ‘green growth’ literature is optimistic that suitable policies and technology can enable such fast decoupling, while ‘degrowth’ proponents dismiss this and argue that the global economy must be scaled down, and that systemic change and redistribution is necessary to accomplish this. We use the so-called Kaya identity to offer a simple quantitative assessment of the gap between the historic performance in reducing the emission intensity of GDP and what is required for green growth, i.e., the basis of ongoing disagreement. We then review the literature on both degrowth and green growth and discuss their most important arguments and proposals. Degrowth authors are right to point out the considerable gap between current climate mitigation efforts and what is needed, as well as the various technological uncertainties and risks such as rebound effects. However, the often radical degrowth proposals also suffer from many uncertainties and risks. Most importantly, it is very unlikely that alternative welfare conceptions can convince a critical mass of countries to go along with a degrowth agenda. Governments should therefore instead focus on mobilizing the necessary investments, pricing carbon emissions, and encouraging innovation and behavioral change.

8. Making Green Public Investments a Reality in the EU Fiscal Framework and the EU Budget

“…Any reform of EU fiscal rules accommodating GPI as well as reforms within the EU budget should be embedded in a broader mix of measures supporting the green transition in general and green private investment in particular. Here, carbon pricing, environmental taxation in general (including the repeal of the substantial fossil-fuel subsidies, which would increase fiscal space for GPI in MS), and environmental regulations are of particular importance; so, too, are long-term policy commitments providing investment security (Lenaerts et al 2022). In any case, the upcoming reform of the EU fiscal framework as well as the upcoming MFF mid-term review and the post-2027 MFF need to account for the massive GPI needs confronting all EU MS, and they need to be better coordinated with the current initiatives to realise the EGD.…”

Model of Global HR Development and Green Economy Diplomacy: Strengthening Global Environmental Governance in Indonesia

“…This shortcoming can hinder concerted efforts to promote green economy practices at the international level (Chohan, 2021). Meanwhile, green diplomacy emphasizes the need for diplomacy that focuses on environmental and sustainability issues (Leann Brown, 2003). However, this theory may need to consider economic aspects and national interests sufficiently, the primary concern in economic diplomacy.…”

“…At the same time, Green Economic Diplomacy creates conducive conditions for sustainable and environmentally friendly economic growth through cooperation between the government and the private/business sector. With the development of substantial human resources and Green Economic Diplomacy, the renewable energy and environmental sectors can grow sustainably, increase the contribution to zero-emission commitments (Lenaerts et al, 2022), and Indonesia can play a more decisive role in global environmental governance. For describe, as follows: Inputs involve government policies and regulations, available resources, and supporting infrastructure.…”

Towards a Green New Deal. Lessons after a lost decade

“…However, the growth of the economy is in combination with population growth the main driving force behind environmental destruction (Chertow, 2000). This conceptual inconsistency pushes against the limits of mainstream economic theory and political discourses in which two camps lead an academic debate about the feasibility of decoupling economic development from environmental pressure (Lenaerts, Tagliapietra & Wolff, 2022). While green growth proponents assume that such a decoupling is feasible, degrowth critics dismiss this option and argue for a scaling down of the economy and redistribution.…”