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A green economy is an
economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the p ...
that aims at reducing environmental risks and ecological scarcities, and that aims for
sustainable development Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desi ...
without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011
UNEP The United Nations Environment Programme (UNEP) is responsible for coordinating responses to environmental issues within the United Nations system. It was established by Maurice Strong, its first director, after the United Nations Conference on th ...
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 Just transition is a framework developed by the trade union movement to encompass a range of social interventions needed to secure workers' rights and livelihoods when economies are shifting to sustainable production, primarily combating climat ...
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 Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of ...
and ecological services as having
economic value In economics, economic value is a measure of the benefit provided by a good or service to an economic agent. It is generally measured through units of currency, and the interpretation is therefore "what is the maximum amount of money a spec ...
(''see
The Economics of Ecosystems and Biodiversity The Economics of Ecosystems and Biodiversity (TEEB) was a study led by Pavan Sukhdev from 2007 to 2011. It is an international initiative to draw attention to the global economic benefits of biodiversity. Its objective is to highlight the growing ...
and Bank of Natural Capital'') and a
full cost accounting Environmental full-cost accounting (EFCA) is a method of cost accounting that traces direct costs and allocates indirect costs by collecting and presenting information about the possible environmental, social and economical costs and benefits o ...
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 Ecolabels (also "Eco-Labels") and Green Stickers are labeling systems for food and consumer products. The use of ecolabels is voluntary, whereas green stickers are mandated by law; for example, in North America major appliances and automobiles us ...
practices have emerged as consumer facing indicators of friendliness to the environment and
sustainable development Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desi ...
. 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 don’t 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 Lynn Margulis (born Lynn Petra Alexander; March 5, 1938 – November 22, 2011) was an American evolutionary biologist, and was the primary modern proponent for the significance of symbiosis in evolution. Historian Jan Sapp has said that "Lynn Ma ...
). 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 Feminism is a range of socio-political movements and ideologies that aim to define and establish the political, economic, personal, and social equality of the sexes. Feminism incorporates the position that society prioritizes the male po ...
,
postmodernism Postmodernism is an intellectual stance or mode of discourseNuyen, A.T., 1992. The Role of Rhetorical Devices in Postmodernist Discourse. Philosophy & Rhetoric, pp.183–194. characterized by skepticism toward the " grand narratives" of moderni ...
, the
environmental movement The environmental movement (sometimes referred to as the ecology movement), also including conservation and green politics, is a diverse philosophical, social, and political movement for addressing environmental issues. Environmentalists advoc ...
,
peace movement A peace movement is a social movement which seeks to achieve ideals, such as the ending of a particular war (or wars) or minimizing inter-human violence in a particular place or situation. They are often linked to the goal of achieving world peac ...
,
Green politics Green politics, or ecopolitics, is a political ideology that aims to foster an ecologically sustainable society often, but not always, rooted in environmentalism, nonviolence, social justice and grassroots democracy. Wall 2010. p. 12-13. It be ...
,
green anarchism Green anarchism (or eco-anarchism"green anarchism (also called eco-anarchism)" in ''An Anarchist FAQ'' by various authors.) is an anarchist school of thought that puts a particular emphasis on ecology and environmental issues. A green anarchist ...
and
anti-globalization The anti-globalization movement or counter-globalization movement, is a social movement critical of economic globalization. The movement is also commonly referred to as the global justice movement, alter-globalization movement, anti-globalist m ...
movement have used the term to describe very different ideas, all external to
mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also known as orthodox economics, it can be contrasted to ...
. The use of the term is further ambiguated by the political distinction of
Green parties A green party is a formally organized political party based on the principles of green politics, such as social justice, environmentalism and nonviolence. Greens believe that these issues are inherently related to one another as a foundation f ...
which are formally organized and claim the capitalised ''Green'' term as a unique and distinguishing mark. It is thus preferable to refer to a loose school of "'green economists"' who generally advocate shifts towards a green economy,
biomimicry Biomimetics or biomimicry is the emulation of the models, systems, and elements of nature for the purpose of solving complex human problems. The terms "biomimetics" and "biomimicry" are derived from grc, βίος (''bios''), life, and μίμησ ...
and a fuller accounting for
biodiversity Biodiversity or biological diversity is the variety and variability of life on Earth. Biodiversity is a measure of variation at the genetic (''genetic variability''), species (''species diversity''), and ecosystem (''ecosystem diversity'') le ...
. (See ''
The Economics of Ecosystems and Biodiversity The Economics of Ecosystems and Biodiversity (TEEB) was a study led by Pavan Sukhdev from 2007 to 2011. It is an international initiative to draw attention to the global economic benefits of biodiversity. Its objective is to highlight the growing ...
'' especially for current authoritative international work towards these goals and Bank of Natural Capital for a layperson's presentation of these.) Some economists view green economics as a branch or subfield of more established schools. For instance, it is regarded as classical economics where the traditional land is generalized to
natural capital Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of ...
and has some attributes in common with labor and physical capital (since natural capital assets like rivers directly substitute for man-made ones such as
canal Canals or artificial waterways are waterways or engineered channels built for drainage management (e.g. flood control and irrigation) or for conveyancing water transport vehicles (e.g. water taxi). They carry free, calm surface fl ...
s). Or, it is viewed as
Marxist economics Marxian economics, or the Marxian school of economics, is a heterodox school of political economic thought. Its foundations can be traced back to Karl Marx's critique of political economy. However, unlike critics of political economy, Marxian e ...
with nature represented as a form of
Lumpenproletariat In Marxist theory, the ''Lumpenproletariat'' () is the underclass devoid of class consciousness. Karl Marx and Friedrich Engels coined the word in the 1840s and used it to refer to the unthinking lower strata of society exploited by reactionary ...
, an exploited base of non-human workers providing
surplus value In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to the owner of that product to manufacture it: i.e. the amount raised through sale of the product minus the cost ...
to the human economy, or as a branch of
neoclassical economics Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a good ...
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 Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of ...
and
full cost accounting Environmental full-cost accounting (EFCA) is a method of cost accounting that traces direct costs and allocates indirect costs by collecting and presenting information about the possible environmental, social and economical costs and benefits o ...
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 The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Interna ...
and
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glob ...
(via its "Green Fund" initiative) responsible for global
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often ...
have stated a clear intention to move towards
biodiversity Biodiversity or biological diversity is the variety and variability of life on Earth. Biodiversity is a measure of variation at the genetic (''genetic variability''), species (''species diversity''), and ecosystem (''ecosystem diversity'') le ...
valuation and a more official and universal biodiversity finance. Taking these into account targeting not less but radically zero emission and waste is what is promoted by the
Zero Emissions Research and Initiatives Zero Emissions Research and Initiatives (ZERI) was established by Gunter Pauli in 1994 at the United Nations University (UNU) with the support of the Japanese Government. Three years before the Kyoto Protocol was agreed upon in 1997, Pauli direct ...
. 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 The European Investment Bank (EIB) is the European Union's investment bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solution ...
announced a set of just transition common principles agreed upon with multilateral development banks, which also align with the
Paris Agreement The Paris Agreement (french: Accord de Paris), often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change. Adopted in 2015, the agreement covers climate change mitigation, adaptation, and ...
. 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 The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966, which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field office ...
,
Islamic Development Bank The Islamic Development Bank ( ar, البنك الإسلامي للتنمية, abbreviated as IsDB) is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and located in Jeddah, Saudi ...
, Council of Europe Development Bank, Asian Infrastructure Investment Bank,
European Bank for Reconstruction and Development The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies. Initially focu ...
,
New Development Bank The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). According to the Agreement on the NDB, ...
, and
Inter-American Development Bank The Inter-American Development Bank (IDB or IADB) is an international financial institution headquartered in Washington, D.C., United States of America, and serving as the largest source of development financing for Latin America and the Caribbe ...
are among the
multilateral development banks An international financial institution (IFI) is a financial institution that has been established (or chartered) by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, al ...
that have vowed to uphold the principles of
climate change mitigation Climate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly caused by emissions from fossil fuels bu ...
and a Just Transition.
The World Bank Group The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Group ...
also contributed.


Definition

Karl Burkart defined a green economy as based on six main sectors: *
Renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
*
Green building Green building (also known as green construction or sustainable building) refers to both a structure and the application of processes that are environmentally responsible and resource-efficient throughout a building's life-cycle: from plann ...
s *
Sustainable transport Sustainable transport refers to ways of transportation that are sustainable in terms of their social and environmental impacts. Components for evaluating sustainability include the particular vehicles used for road, water or air transport; th ...
*
Water management Water resources are natural resources of water that are potentially useful for humans, for example as a source of drinking water supply or irrigation water. 97% of the water on the Earth is salt water and only three percent is fresh water; slightl ...
* Waste management *
Land management Land management is the process of managing the use and development (in both urban and rural settings, but it is mostly managed in Urban places.) of land resources. Land resources are used for a variety of purposes which may include organic agri ...
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 poly 324 219 334 226 343 234 351 242 359 251 366 263 371 276 375 287 400 279 417 272 438 263 453 252 466 241 477 229 488 214 497 193 482 189 463 188 423 188 398 191 376 196 352 204 Equitable 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 Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livin ...
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 An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the p ...
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 Social organisms, including human(s), live collectively in interacting populations. This interaction is considered social whether they are aware of it or not, and whether the exchange is voluntary or not. Etymology The word "social" derives from ...
The
International Chamber of Commerce The International Chamber of Commerce (ICC; French: ''Chambre de commerce internationale'') is the largest, most representative business organization in the world. Its over 45 million members in over 100 countries have interests spanning every s ...
(ICC) representing global business defines 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 Open or OPEN may refer to: Music * Open (band), Australian pop/rock band * The Open (band), English indie rock band * ''Open'' (Blues Image album), 1969 * ''Open'' (Gotthard album), 1999 * ''Open'' (Cowboy Junkies album), 2001 * ''Open'' (YF ...
and competitive markets * Metrics, accounting, and reporting * Finance and investment * Awareness * Life cycle approach *
Resource efficiency Resource efficiency is the maximising of the supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively, with minimum wasted (natural) resource expenses. It means using the ...
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 Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land ( rail and road), water, cable, pipelin ...
,
energy In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of heat ...
,
buildings A building, or edifice, is an enclosed structure with a roof and walls standing more or less permanently in one place, such as a house or factory (although there's also portable buildings). Buildings come in a variety of sizes, shapes, and func ...
and
tourism Tourism is travel for pleasure or business; also the theory and practice of touring (disambiguation), touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tour (disambiguation), tours. Th ...
, as well as the
investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...
flows targeted to areas like
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
and
cleantech Clean technology, in short cleantech, is any process, product, or service that reduces negative environmental impacts through significant energy efficiency improvements, the sustainable use of resources, or environmental protection activities. Cle ...
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 Circles of Sustainability is a method for understanding and assessing sustainability, and for project management directed towards socially sustainable outcomes. It is intended to handle 'seemingly intractable problems' such as outlined in ...
project scored 5 cities in 5 separate countries. # 2009 - 2012 Green City Index A global study commissioned by Siemens
Ecological footprint The ecological footprint is a method promoted by the Global Footprint Network to measure human demand on natural capital, i.e. the quantity of nature it takes to support people or an economy. It tracks this demand through an ecological accountin ...
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 Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs". Most definitions of sustainable energy include considerations of environmental aspects such as greenho ...
generation based on
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
to replace
fossil fuels A fossil fuel is a hydrocarbon-containing material formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. The main fossil fuels are coal, oil, and natural gas. Fossil fuels ma ...
as well as
energy conservation Energy conservation is the effort to reduce wasteful energy consumption by using fewer energy services. This can be done by using energy more effectively (using less energy for continuous service) or changing one's behavior to use less service (f ...
and
efficient energy use Efficient energy use, sometimes simply called energy efficiency, is the process of reducing the amount of energy required to provide products and services. For example, insulating a building allows it to use less heating and cooling energy to ...
. Renewables, like
solar energy Solar energy is radiant light and heat from the Sun that is harnessed using a range of technologies such as solar power to generate electricity, solar thermal energy (including solar water heating), and solar architecture. It is an essenti ...
and
wind energy Wind power or wind energy is mostly the use of wind turbines to generate electricity. Wind power is a popular, sustainable, renewable energy source that has a much smaller impact on the environment than burning fossil fuels. Historically, w ...
, may eliminate the use of fossil fuels for electricity by 2035 and replace fossil fuel usage altogether by 2050. The
market failure In neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where indiv ...
to respond to
environmental protection Environmental protection is the practice of protecting the natural environment by individuals, organizations and governments. Its objectives are to conserve natural resources and the existing natural environment and, where possible, to repair da ...
and climate protection needs can be attributed to high
external costs In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...
and high initial costs for research, development, and marketing of
green energy Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs". Most definitions of sustainable energy include considerations of environmental aspects such as greenho ...
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 The American Recovery and Reinvestment Act of 2009 (ARRA) (), nicknamed the Recovery Act, was a stimulus package enacted by the 111th U.S. Congress and signed into law by President Barack Obama in February 2009. Developed in response to the Gr ...
, 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 Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced b ...
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 The Three Mile Island accident was a partial meltdown of the Three Mile Island, Unit 2 (TMI-2) reactor in Pennsylvania, United States. It began at 4 a.m. on March 28, 1979. It is the most significant accident in U.S. commercial nuclea ...
and the
Chernobyl disaster The Chernobyl disaster was a nuclear accident that occurred on 26 April 1986 at the No. 4 reactor in the Chernobyl Nuclear Power Plant, near the city of Pripyat in the north of the Ukrainian SSR in the Soviet Union. It is one of only two nucl ...
. 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 Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
. As of 2021, 18% of Americans are in favor of
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon di ...
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 Forestry is the science and craft of creating, managing, planting, using, conserving and repairing forests, woodlands, and associated resources for human and environmental benefits. Forestry is practiced in plantations and natural stands. Th ...
to water. The research organisation ETC Group argues that the corporate emphasis on bio-economy "will spur even greater convergence of corporate power and unleash the most massive resource grab in more than 500 years." Venezuelan professor Edgardo Lander says that the
UNEP The United Nations Environment Programme (UNEP) is responsible for coordinating responses to environmental issues within the United Nations system. It was established by Maurice Strong, its first director, after the United Nations Conference on th ...
'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 The United Nations Conference on Trade and Development (UNCTAD) is an intergovernmental organization within the United Nations Secretariat that promotes the interests of developing countries in world trade. It was established in 1964 by the ...
also says that the focus on Green Economy and "
green growth Green growth is a term to describe a hypothetical path of economic growth that is environmentally sustainable. It is based on the understanding that as long as economic growth remains a predominant goal, a decoupling of economic growth from resou ...
" in particular, "based on an evolutionary (and often
reductionist Reductionism is any of several related philosophical ideas regarding the associations between phenomena which can be described in terms of other simpler or more fundamental phenomena. It is also described as an intellectual and philosophical po ...
) 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 Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and lar ...
. 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 The Economics of Ecosystems and Biodiversity (TEEB) was a study led by Pavan Sukhdev from 2007 to 2011. It is an international initiative to draw attention to the global economic benefits of biodiversity. Its objective is to highlight the growing ...
), 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


See also

* Agroecology *
Carbon fee and dividend A carbon fee and dividend or climate income is a system to reduce greenhouse gas emissions and address climate change. The system imposes a carbon tax on the sale of fossil fuels, and then distributes the revenue of this tax over the entire popu ...
*
Circular economy A circular economy (also referred to as circularity and CE) is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. CE aims ...
*
Degrowth Degrowth (french: décroissance) is a term used for both a political, economic, and social movement as well as a set of theories that critique the paradigm of economic growth. It can be described as an extensive framework that is based on criti ...
*
Eco-capitalism Eco-capitalism, also known as environmental capitalism or (sometimes) green capitalism, is the view that capital exists in nature as "natural capital" (ecosystems that have ecological yield) on which all wealth depends. Therefore, governments ...
*
Eco-socialism Eco-socialism (also known as green socialism or socialist ecology) is an ideology merging aspects of socialism with that of green politics, ecology and alter-globalization or anti-globalization. Eco-socialists generally believe that the expa ...
* Ecology of contexts *
Embodied energy Embodied energy is the sum of all the energy required to produce any goods or services, considered as if that energy was incorporated or 'embodied' in the product itself. The concept can be useful in determining the effectiveness of energy-produ ...
*
Embodied water The virtual water trade (also known as embedded or embodied water) is the hidden flow of water in food or other commodities that are traded from one place to another. The virtual water trade is the idea that when goods and services are exchanged, s ...
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Energy accounting Energy accounting is a system used to measure, analyze and report the energy consumption of different activities on a regular basis. This is done to improve energy efficiency, and to monitor the environment impact of energy consumption. Energy man ...
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Energy economics Energy economics is a broad scientific subject area which includes topics related to supply and use of energy in societies. Considering the cost of energy services and associated value gives economic meaning to the efficiency at which energy ...
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Energy policy Energy policy is the manner in which a given entity (often governmental) has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to con ...
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Environmental economics Environmental economics is a sub-field of economics concerned with environmental issues. It has become a widely studied subject due to growing environmental concerns in the twenty-first century. Environmental economics "undertakes theoretical or ...
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Environmental ethics In environmental philosophy, environmental ethics is an established field of practical philosophy "which reconstructs the essential types of argumentation that can be made for protecting natural entities and the sustainable use of natural resourc ...
* Free-market environmentalism * Green accounting *
Green recovery Green recovery packages are proposed environmental, regulatory and fiscal reforms to build prosperity in the wake of an economic crisis, like the COVID-19 pandemic or the Global Financial Crisis. They pertain to fiscal measures that intend to recov ...
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Greenwashing Greenwashing (a compound word modeled on "whitewash"), also called "green sheen", is a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organization's products, aims ...
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Human ecology Human ecology is an interdisciplinary and transdisciplinary study of the relationship between humans and their natural, social, and built environments. The philosophy and study of human ecology has a diffuse history with advancements in ecol ...
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Industrial ecology Industrial ecology (IE) is the study of material and energy flows through industrial systems. The global industrial economy can be modelled as a network of industrial processes that extract resources from the Earth and transform those resource ...
* International Journal of Green Economics *
ISO 14000 ISO 14000 is a family of standards related to environmental management that exists to help organizations (a) minimize how their operations (processes, etc.) negatively affect the environment (i.e. cause adverse changes to air, water, or land); (b) ...
* Market governance mechanism *
Natural resource economics Natural resource economics deals with the supply, demand, and allocation of the Earth's natural resources. One main objective of natural resource economics is to better understand the role of natural resources in the economy in order to devel ...
* Outline of green politics *
Pigovian tax A Pigouvian tax (also spelled Pigovian tax) is a tax on any market activity that generates negative externalities (i.e., external costs incurred by the producer that are not included in the market price). The tax is normally set by the governm ...
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Purple economy Purple is any of a variety of colors with hue between red and blue. In the RGB color model used in computer and television screens, purples are produced by mixing red and blue light. In the RYB color model historically used by painters, pur ...
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Renewable energy commercialization Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include ...
* Restoration economy * Social ecology *
Sustainable design Environmentally sustainable design (also called environmentally conscious design, eco-design, etc.) is the philosophy of designing physical objects, the built environment, and services to comply with the principles of ecological sustainability ...
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Sustainable finance Sustainable finance is the set of financial regulations, standards, norms and products that pursue an environmental objective. It allows the financial system to connect with the economy and its populations by financing its agents while maintaining ...
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World energy consumption World energy supply and consumption is global production and preparation of fuel, generation of electricity, energy transport, and energy consumption. It is a basic part of economic activity. It includes heat, but not energy from food. This art ...


References


Further reading

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Jeremy Rifkin Jeremy Rifkin (born January 26, 1945) is an American economic and social theorist, writer, public speaker, political advisor, and activist. Rifkin is the author of 23 books about the impact of scientific and technological changes on the economy, ...
(2013)
"The Third Industrial Revolution"
. VII,233-242 *


External links


Green Growth Knowledge Platform

ICC Green Economy Roadmap 2012

Green Economy Coalition

UNEP – Green Economy

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