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From growth to green growth -- a framework

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  • Hallegatte, Stephane
  • Heal, Geoffrey
  • Fay, Marianne
  • Treguer, David

Abstract

Green growth is about making growth processes resource-efficient, cleaner and more resilient without necessarily slowing them. This paper aims at clarifying these concepts in an analytical framework and at proposing foundations for green growth. The green growth approach proposed here is based on (1) focusing on what needs to happen over the next 5-10 years before the world gets locked into patterns that would be prohibitively expensive and complex to modify and (2) reconciling the short and the long term, by offsetting short-term costs and maximizing synergies and economic co-benefits. This, in turn, increases the social and political acceptability of environmental policies. This framework identifies channels through which green policies can potentially contribute to economic growth. However, only detailed country- and context-specific analyses for each of these channels could reach firm conclusion regarding their actual impact on growth. Finally, the paper discusses the policies that can be implemented to capture these co-benefits and environmental benefits. Since green growth policies pursue a variety of goals, they are best served by a combination of instruments: price-based policies are important but are only one component in a policy tool-box that can also include norms and regulation, public production and direct investment, information creation and dissemination, education and moral suasion, or industrial and innovation policies.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5872.

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Date of creation: 01 Nov 2011
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Handle: RePEc:wbk:wbrwps:5872

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Keywords: Environmental Economics&Policies; Climate Change Economics; Economic Theory&Research; Transport Economics Policy&Planning; Labor Policies;

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References

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Citations

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Cited by:
  1. Barbier, Edward B., 2012. "Natural capital, ecological scarcity and rural poverty," Policy Research Working Paper Series 6232, The World Bank.
  2. Resnick, Danielle & Tarp, Finn & Thurlow, James, 2012. "The Political Economy of Green Growth: Illustrations from Southern Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Nwaobi, Godwin, 2013. "The Economics of Climate Change and Science of Global Warming Debate:African Perspectives," MPRA Paper 46807, University Library of Munich, Germany.
  4. Spencer, Thomas & Lucas, Chancel & Emmanuel, Guerin, 2012. "Exiting the crisis in the right direction: A sustainable and shared prosperity plan for Europe," MPRA Paper 38802, University Library of Munich, Germany.
  5. Hallegatte, Stephane & Fay, Marianne & Vogt-Schilb, Adrien, 2013. "Green industrial policies : when and how," Policy Research Working Paper Series 6677, The World Bank.
  6. Huang, Yongfu & Quibria, M. G., 2013. "Green growth: theory and evidence," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Duscha, Vicki & Schumacher, Katja & Schleich, Joachim & Buisson, Pierre, 2013. "Costs of meeting international climate targets without nuclear power," Working Papers "Sustainability and Innovation" S7/2013, Fraunhofer Institute for Systems and Innovation Research (ISI).
  8. Anna Dimitrova & Katarina Hollan & Daphne Laster & Andreas Reinstaller & Margit Schratzenstaller & Ewald Walterskirchen & Teresa Weiss, 2013. "Literature review on fundamental concepts and definitions, objectives and policy goals as well as instruments relevant for socio-ecological transition," WWWforEurope Working Papers series 40, WWWforEurope.
  9. repec:wbk:wbpubs:15790 is not listed on IDEAS
  10. Khanna, Neha, 2013. "Output, emissions, and technology: Some thoughts," Economics Letters, Elsevier, vol. 118(2), pages 284-286.
  11. Chen, Zexian & He, Jingjing, 2013. "Foreign aid for climate change related capacity building," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. Jouvet, Pierre-André & De Perthuis, Christian, 2012. "La croissance verte : de l’intention à la mise en oeuvre," Economics Papers from University Paris Dauphine 123456789/10234, Paris Dauphine University.
  13. K. Jenkins, 2013. "Indirect economic losses of drought under future projections of climate change: a case study for Spain," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 69(3), pages 1967-1986, December.

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