Green Economists

A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011 UNEP Green Economy Report argues "that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource efficient, and socially inclusive."UNEP, 2011, Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication, www.unep.org/greeneconomy

A feature distinguishing it from prior economic regimes is the direct valuation of natural capital and ecological services as having economic value (''see The Economics of Ecosystems and Biodiversity and Bank of Natural Capital'') and a full cost accounting regime in which costs externalized onto society via ecosystems are reliably traced back to, and accounted for as liabilities of, the entity that does the harm or neglects an asset.

Green sticker and ecolabel practices have emerged as consumer facing indicators of friendliness to the environment and sustainable development. Many industries are starting to adopt these standards as a way to promote their greening practices in a globalizing economy. Also known as sustainability standards, these standards are special rules that guarantee the products bought do not hurt the environment and the people that make them. The number of these standards has grown recently and they can now help build a new, greener economy. They focus on economic sectors like forestry, farming, mining or fishing, among others; concentrate on environmental factors like protecting water sources and biodiversity, or reducing greenhouse gas emissions; support social protections and workers' rights; and home in on specific parts of production processes.

Green economists and economics

Green economics is loosely defined as any theory of economics by which an economy is considered to be component of the ecosystem in which it resides (after Lynn Margulis). A holistic approach to the subject is typical, such that economic ideas are commingled with any number of other subjects, depending on the particular theorist. Proponents of feminism, postmodernism, the environmental movement, peace movement, Green politics, green anarchism and anti-globalization movement have used the term to describe very different ideas, all external to mainstream economics.

According to Büscher, the increasing liberalisation of politics since the 1990s has meant that biodiversity must 'legitimise itself' in economic terms. Many non-governmental organisations, governments, banks, companies and so forth have started to claim the right to Define and defend biodiversity and in a distinctly neoliberal manner that subjects the concept's social, political, and ecological dimensions to their value as determined by capitalist markets.

Some economists view green economics as a branch or subfield of more established schools. For instance, it can be regarded as classical economics where the traditional land is generalized to natural capital and has some attributes in common with labor and physical capital (since natural capital assets like rivers directly substitute for human-made ones such as canals). Or, it can be viewed as Marxist economics with nature represented as a form of Lumpenproletariat, an exploited base of non-human workers providing surplus value to the human economy, or as a branch of neoclassical economics in which the price of life for developing vs. developed nations is held steady at a ratio reflecting a balance of power and that of non-human life is very low.

An increasing commitment by the UNEP (and national governments such as the UK) to the ideas of natural capital and full cost accounting under the banner 'green economy' could blur distinctions between the schools and redefine them all as variations of "green economics". As of 2010 the Bretton Woods institutions (notably the World Bank and International Monetary Fund (via its "Green Fund" initiative) responsible for global monetary policy have stated a clear intention to move towards biodiversity valuation and a more official and universal biodiversity finance.

The UNEP 2011 Green Economy Report informs that "based on existing studies, the annual financing demand to green the global economy was estimated to be in the range US$1.05 to US$2.59 trillion. To place this demand in perspective, it is about one-tenth of total global investment per year, as measured by global Gross Capital Formation."

At COP26, the European Investment Bank announced a set of just transition common principles agreed upon with multilateral development banks, which also align with the Paris Agreement. The principles refer to focusing financing on the transition to net zero carbon economies, while keeping socioeconomic effects in mind, along with policy engagement and plans for inclusion and gender equality, all aiming to deliver long-term economic transformation.

The African Development Bank, Asian Development Bank, Islamic Development Bank, Council of Europe Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, New Development Bank, and Inter-American Development Bank are among the multilateral development banks that have vowed to uphold the principles of climate change mitigation and a Just Transition. The World Bank Group also contributed.

Definition

Karl Burkart defined a green economy as based on six main sectors:
* Renewable energy
* Green buildings
* Sustainable transport
* Water management
* Waste management
* Land management

Image:Sustainable development.svg, The three pillars of sustainability, 300px, thumb
poly 138 194 148 219 164 240 182 257 219 277 263 291 261 311 264 331 272 351 283 366 300 383 316 394 287 408 261 417 224 424 182 426 154 423 119 415 87 403 58 385 40 368 24 347 17 328 13 309 16 286 26 263 43 240 64 224 84 212 107 202 Environment
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poly 319 221 330 229 337 235 347 244 357 258 365 270 371 287 358 289 344 291 321 292 303 292 284 290 268 288 272 275 278 261 287 249 297 239 Sustainable
poly 142 192 167 188 185 187 211 187 235 190 263 196 286 203 304 212 316 219 305 227 295 236 285 246 276 259 269 272 264 287 249 284 229 277 208 268 190 256 172 242 158 226 149 212 Bearable (Social ecology)
poly 267 291 265 304 267 320 275 345 284 360 293 371 304 381 319 392 332 384 343 374 354 362 364 347 371 332 373 317 374 305 372 292 362 293 344 295 323 296 301 296 286 294 Viable (Environmental economics)
poly 501 193 519 197 541 205 561 215 582 228 604 248 616 267 623 286 626 305 623 326 617 343 607 359 596 373 580 386 563 397 538 409 517 417 494 422 468 425 432 426 413 424 396 421 375 416 353 409 335 401 323 394 335 386 349 372 360 359 374 331 377 313 377 299 376 290 388 288 410 280 458 256 481 233 Economic
poly 141 188 139 173 143 147 152 126 169 107 191 88 216 75 242 65 280 55 310 53 352 54 379 60 415 71 447 88 461 99 475 112 488 128 496 147 500 162 500 176 500 189 471 185 452 183 410 185 369 194 337 206 319 216 305 208 279 197 257 191 230 185 199 183 199 182 199 183 Social

The International Chamber of Commerce (ICC), representing global business, defines the green economy as "an economy in which economic growth and environmental responsibility work together in a mutually reinforcing fashion while supporting progress on social development".

In 2012, the ICC published the ''Green Economy Roadmap'', containing contributions from international experts consulted bi-yearly. The Roadmap represents a comprehensive and multidisciplinary effort to clarify and frame the concept of "green economy". It highlights the role of business in bringing solutions to global challenges. It sets out the following 10 conditions which relate to business/intra-industry and collaborative action for a transition towards a green economy:

* Open and competitive markets
* Metrics, accounting, and reporting
* Finance and investment
* Awareness
* Life cycle approach
* Resource efficiency and decoupling
* Employment
* Education and skills
* Governance and partnership
* Integrated policy and decision-making

Finance and investing

Green growth

Approximately 57% of businesses responding to a survey are investing in energy efficiency, 64% in reducing and recycling trash, and 32% in new, less polluting industries and technologies. Roughly 40% of businesses made investments in energy efficiency in 2021.

Ecological measurements

Measuring economic output and progress is done through the use of economic index indicators. Green indices emerged from the need to measure human ecological impact, efficiency sectors like transport, energy, buildings and tourism, as well as the investment flows targeted to areas like renewable energy and cleantech innovation.
# 2016 - 2022 Green Score City Index is an ongoing study measuring the anthropogenic impact human activity has on nature.
# 2010 - 2018 Global Green Economy Index™ (GGEI), published by consultancy Dual Citizen LLC is in its 6th edition. It measures the green economic performance and perceptions of it in 130 countries along four main dimensions of leadership & climate change, efficiency sectors, markets & investment and the environment.
# 2009 - 2013 Circles of Sustainability project scored 5 cities in 5 separate countries.
# 2009 - 2012 Green City Index A global study commissioned by Siemens

Ecological footprint measurements are a way to gauge anthropogenic impact and are another standard used by municipal governments.

Green energy issues

Green economies require a transition to green energy generation based on renewable energy to replace fossil fuels as well as energy conservation and efficient energy use. Renewables, like solar energy and wind energy, may eliminate the use of fossil fuels for electricity by 2035 and replace fossil fuel usage altogether by 2050.

The market failure to respond to environmental protection and climate protection needs can be attributed to high external costs and high initial costs for research, development, and marketing of green energy sources and green products. The green economy may need government subsidies as market incentives to motivate firms to invest and produce green products and services. The German Renewable Energy Act, legislations of many other member states of the European Union and the American Recovery and Reinvestment Act of 2009, all provide such market incentives. However, other experts argue that green strategies can be highly profitable for corporations that understand the business case for sustainability and can market green products and services beyond the traditional green consumer.

In the United States, it seemed as though the nuclear industry was coming to an end by the mid-1990s. Until 2013, there had been no new nuclear power facilities built since 1977. One reason was due to the economic reliance on fossil fuel-based energy sources. Additionally, there was a public fear of nuclear energy due to the Three Mile Island accident and the Chernobyl disaster. The Bush administration passed the 2005 Energy Bill that granted the nuclear industry around 10 million dollars to encourage research and development efforts. With the increasing threat of climate change, nuclear energy has been highlighted as an option to work to decarbonize the atmosphere and reverse climate change. Nuclear power forces environmentalists and citizens around the world to weigh the pro and cons of using nuclear power as a renewable energy source. The controversial nature of nuclear power has the potential to split the green economy movement into two branches— anti-nuclear and pro-nuclear.

According to a European climate survey, 63% of EU residents, 59% of Britons, 50% of Americans and 60% of Chinese respondents are in favor of switching to renewable energy. As of 2021, 18% of Americans are in favor of natural gas as a source of energy. For Britons and EU citizens nuclear energy is a more popular energy alternative.

After the COVID-19 pandemic, Eastern European and Central Asian businesses fall behind their Southern European counterparts in terms of the average quality of their green management practices, notably in terms of specified energy consumption and emissions objectives.

External variables, such as consumer pressure and energy taxes, are more relevant than firm-level features, such as size and age, in influencing the quality of green management practices. Firms with less financial limitations and stronger green management practices are more likely to invest in a bigger variety of green initiatives. Energy efficiency investments are good to both the bottom line and the environment.

The shift to greener energy and the adoption of more climate regulations are expected to have a 30% positive impact on businesses, mostly through new business prospects, and a 30% negative impact, according to businesses that took part in a survey in 2022. A little over 40% of the same businesses do not anticipate the transition to greener alternatives to alter their operations.

Criticism

A number of organisations and individuals have criticised aspects of the 'Green Economy', particularly the mainstream conceptions of it based on using price mechanisms to protect nature, arguing that this will extend corporate control into new areas from forestry to water. Venezuelan professor Edgardo Lander says that the UNEP's report, ''Towards a Green Economy'', while well-intentioned "ignores the fact that the capacity of existing political systems to establish regulations and restrictions to the free operation of the markets – even when a large majority of the population call for them – is seriously limited by the political and financial power of the corporations."

Ulrich Hoffmann, in a paper for UNCTAD also says that the focus on Green Economy and "green growth" in particular, "based on an evolutionary (and often reductionist) approach will not be sufficient to cope with the complexities of climate
change" and "may rather give much false hope and excuses to do nothing really fundamental that can bring about a U-turn of global greenhouse gas emissions. Clive Spash, an ecological economist, has criticised the use of economic growth to address environmental losses, and argued that the Green Economy, as advocated by the UN, is not a new approach at all and is actually a diversion from the real drivers of environmental crisis. He has also criticised the UN's project on the economics of ecosystems and biodiversity ( TEEB), and the basis for valuing ecosystems services in monetary terms.Spash, C.L. 2008. How much is that ecosystem in the window? The one with the bio-diverse trail. Environmental Values, vol. 17, no. 2, 259-284

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References

External links

Green Growth Knowledge Platform

Green Economy Coalition


UNEP – Green Economy

{{DEFAULTSORT:Green Economy
Schools of economic thought
Industrial ecology
Natural resources
Resource economics
Economy by field
Economic systems