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From barriers to opportunities: Enabling investments in resource efficiency for sustainable development

Author

Listed:
  • Florian Flachenecker

    (European Commission, Joint Research Centre, Brussels, Belgium; University College London, Institute for Sustainable Resources, London, UK)

  • Jun Rentschler

    (The Payne Institute for Public Policy, Denver CO, USA)

Abstract

Increasing investments in resource efficiency is considered essential for transitioning towards a sustainable model of economic growth. This article presents evidence on the complex incentives, trade-offs, and challenges associated with the economics and politics of resource efficiency investments, especially in light of the Sustainable Development Goals and the Paris Climate Agreement. By synthesising and evaluating a wide range of empirical evidence, practitioners’ insights, and policy perspectives, this article carefully examines the role of resource efficiency in reconciling environmental and economic objectives. It makes particular reference to the investment barriers and transitional implications of moving economies towards more circular and resource efficient pathways. In doing so, it provides a policy-oriented guide and toolbox to help overcome barriers, unlock the economic potential of resource efficiency, and highlight the challenges associated with the resource transition. Overall, this article brings together evidence, aiming to further develop and propose new strategies for improving the efficient use of natural resources to advance the sustainable development agenda.

Suggested Citation

  • Florian Flachenecker & Jun Rentschler, 2019. "From barriers to opportunities: Enabling investments in resource efficiency for sustainable development," Public Sector Economics, Institute of Public Finance, vol. 43(4), pages 345-373.
    • Handle: RePEc:ipf:psejou:v:43:y:2019:i:4:p:345-373
    DOI: 10.3326/pse.43.4.2
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    Cited by:

    1. Clodniţchi Roxana & Tudorache Octavia, 2022. "Resource efficiency and decarbonisation of economies in the European Union," Management & Marketing, Sciendo, vol. 17(2), pages 139-155, June.
    2. Andrea Molocchi, 2021. "Circular Economy and Environmental Sustainability: A Policy Coherence Analysis of Current Italian Subsidies," Sustainability, MDPI, vol. 13(15), pages 1-38, July.
    3. Jackson, Emerson Abraham, 2020. "Importance of the Public Service in Achieving the UN SDGs," MPRA Paper 101806, University Library of Munich, Germany, revised 02 Jun 2020.
    4. Andrea Bacchiocchi & Alessandro Bellocchi & Germana Giombini, 2024. "Green Investment Challenges in European Firms: Internal vs. External Resources," Sustainability, MDPI, vol. 16(2), pages 1-20, January.

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    More about this item

    Keywords

    resource efficiency; sustainable development; investments; circular economy; eco-innovation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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