Growth theory and "green growth"
"The relatively new and still amorphous concept of "Green Growth" can be understood as a call for balancing longer-term investments in sustaining environmental wealth with nearer-term income growth to reduce poverty. We draw on a large body of economic theory available for providing i...
| Main Authors: | , , |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Oxford
2014
University of Oxford |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19119974124919371569-Growth-theory-and-green-growth.htm |
| Summary: | "The relatively new and still amorphous concept of "Green Growth" can be understood as a call for balancing longer-term investments in sustaining environmental wealth with nearer-term income growth to reduce poverty. We draw on a large body of economic theory available for providing insights on such balancing of income growth and environmental sustainability. We show that there is a no a priori assurance of substantial positive spillovers from environmental policies to income growth, or for a monotonic transition to a "green steady state" along an optimal path. The greenness of an optimal growth path can depend heavily on initial conditions, with a variety of different adjustments occurring concurrently along an optiaml path. Factor-augmenting technical change targeting at offsetting resource depletion is critical to sustaining long-term growth within natural limits on the availability of natural resources and environmental services." |
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| Physical Description: | 36 p. Digital |