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Global Demand for Environmental Goods and Services on the Rise: Good Growth Opportunities for German Suppliers


  • Jürgen Blazejczak
  • Frauke G. Braun
  • Dietmar Edler


According to conservative calculations, over $580 billion was spent worldwide on environmental goods and services and renewable energy technologies1 in 2004. So-called "green spending" is set for strong growth in the future on account of the long-term expansion of the global economy and mounting environmental challenges. Significant opportunities for growth and employment in Germany are also offered by forecasted trends in the market for green technologies. DIW Berlin has developed a method to quantify future global demand for environmental goods and services based on alternative economic scenarios. The method places a key focus on the international trade of environmental goods and services. Our calculations predict that the effective annual demand for environmental goods and services in Germany will increase from $75 billion in 2004 to between $106 and 171 billion by 2020 (at 2004 prices and exchange rates).The high growth in German exports is responsible in particular for this trend. Nevertheless, sensitivity calculations indicate that demand could also grow at a much slower rate through 2020 under unfavorable economic conditions.

Suggested Citation

  • Jürgen Blazejczak & Frauke G. Braun & Dietmar Edler, 2009. "Global Demand for Environmental Goods and Services on the Rise: Good Growth Opportunities for German Suppliers," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 5(20), pages 138-144.
  • Handle: RePEc:diw:diwwrp:wr5-20

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    Cited by:

    1. Everett, Tim & Ishwaran, Mallika & Ansaloni, Gian Paolo & Rubin, Alex, 2010. "Economic growth and the environment," MPRA Paper 23585, University Library of Munich, Germany.
    2. LaFleur, Marcelo, 2011. "The liberalization of environmental goods and services: overview and implications for Latin America and the Caribbean," Comercio Internacional 111, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item


    Environmental Goods and Services Sector; World Trade; Scenarios;

    JEL classification:

    • 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
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • F18 - International Economics - - Trade - - - Trade and Environment


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