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Green Economy: great expectation or big illusion?

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  • Ignazio Musu

    (Department of Economics, University Of Venice C� Foscari)

Abstract

Simple growth accounting shows that the negative scale effect of economic growth on the environment can be compensated by a composition effect, increasing the weight of less polluting productions, and by a technical progress favorable to the environment, in order to make possible a sustainable growth path. To achieve this result a combination of environmental regulation and innovation policy is required. Revenues from economic instruments of environmental regulation can be earmarked to environmental friendly innovations; difficulties arise because of the trade off with using those revenues as redistributive means to compensate the usually regressive nature of environmental regulation. The �case study� of the energy and climate program of President Obama is an example of the complexity of the challenge to move towards the target of a �green economy�. A complementary essential role of social environmental responsibility both of consumers and firms is required.

Suggested Citation

  • Ignazio Musu, 2010. "Green Economy: great expectation or big illusion?," Working Papers 2010_01, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2010_01
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    References listed on IDEAS

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    Cited by:

    1. Almas Heshmati, 2018. "An empirical survey of the ramifications of a green economy," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 12(1), pages 53-85.

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    More about this item

    Keywords

    Economic Development; Innovation; Environmental Policies; Sustainable Development;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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