The feasibility of green growth is studied in the context of climate change. As carbon emissions are easier to quantify than many other types of environmental pressure, it will be possible to reach a more definite conclusion about the likelihood of green growth than has been possible in the long-standing historical debate on growth versus the environment. This paper calculates the rate of decoupling between gross domestic product (GDP) and GHG emissions needed to achieve internationally agreed climate targets. Next, eight arguments are considered that together suggest that fast decoupling will be very difficult. Subsequently, this study examines the main lines of research used by proponents of green growth to support their viewpoint, including theoretical arguments, exercises with integrated assessment models, and studies of the environmental Kuznets curve hypothesis. It will be concluded that decoupling as a main or single strategy to combine economic and environmental aims should be judged as taking a very large risk with our common future. To minimize this risk we need to seriously consider reducing our dependence on growth.
The need to find a suitable alternative to our present carbon-based production pattern is currently the subject of international discussion, not least because economic growth usually goes hand in hand with increased resource consumption. As part of such an alternative, all economic decisions would have to take into account environmental concerns and the value of natural assets. The discussion is mainly focused on different concepts of green growth, now a buzzword. The hope is that we can find a solution to our world's most pressing issues, one that enables us to achieve economic growth while conserving ecosystems, preventing environmental degradation and contributing to the aims of climate stability and poverty reduction.
In addition to the important debate on the different ways of achieving this, it is also essential to discuss how we can effectively map the achievement of green growth. A number of international organisations have proposed sets of indicators for measuring green growth, and initiatives such as the Green Growth Knowledge Platform (GGKP) have been set up to pool existing knowledge, identify gaps in knowledge and provide a platform for discussion.
This report assesses conceptually and empirically the extent to which the stringency of environmental regulations spurs the development of a market for a whole range of equipment specifically meant for preventing and abating pollution. Many of the measures governments adopt to address environmental issues take the form of regulations that aim to change the behaviour of firms or households. By increasing demand for environmental products and technologies, environmental policy can complement trade policy in supporting pollution-reduction efforts not just domestically, but also abroad.
This paper investigates the impact of changes in the stringency of environmental policies on productivity growth in OECD countries. Using a new environmental policy stringency index, it estimates a reduced-form model of multi-factor productivity growth, where the effect of countries' environmental policies varies with pollution intensity of the industry and technological advancement.
As the world economy slowly recovers from one of the longest and most severe global slowdowns in history, there has been growing interest in how fluctuations in economic activity interact with climate change policy. Of particular interest is how carbon pricing instruments, such as emissions trading systems and carbon taxes, are designed and operate. This policy brief analyses the relevant empirical evidence and theoretical research on how carbon pricing instruments function in recessions and booms.
This report is a documentation of the joint Public Expenditure Review (PER) of the Environment and Disaster Risk Management for the 2006 to 2012 period.