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The economic theory of qualitative green growth

Author

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  • Fabozzi, Frank J.
  • Focardi, Sergio
  • Ponta, Linda
  • Rivoire, Manon
  • Mazza, Davide

Abstract

Advanced economies are increasingly forced to act in order to mitigate climate changes and to reduce the impact of human activity on the environment. The key strategy promoted by the OECD and other international organizations is green growth. The key tenet of green growth is the ability of science and technology to let economies grow without damaging the environment. Banning unpredictable technology advances, empirical data cast doubts about the practical possibility of implementing green growth. This paper claims that we need to change the concept of growth, accepting qualitative growth as true growth. At the same time we need to change economic theory because mainstream economics recognizes only quantitative growth and would conclude that a healthy economy that grows qualitatively is in recession. We claim that economic theory is an abstract theory that can only model monetary variables plus abstract variables that represent the real economy. These variables are not descriptive but are only mathematical tools to connect monetary variables.

Suggested Citation

  • Fabozzi, Frank J. & Focardi, Sergio & Ponta, Linda & Rivoire, Manon & Mazza, Davide, 2022. "The economic theory of qualitative green growth," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 242-254.
    • Handle: RePEc:eee:streco:v:61:y:2022:i:c:p:242-254
    DOI: 10.1016/j.strueco.2022.02.005
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    Cited by:

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    3. Chang, Jun-Jie & Mi, Zhifu & Wei, Yi-Ming, 2023. "Temperature and GDP: A review of climate econometrics analysis," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 383-392.
    4. Chuansheng Wu & Yuyue Li & Lingling Qi, 2022. "Assessing the Impact of Green Transformation on Ecological Well-Being Performance: A Case Study of 78 Cities in Western China," IJERPH, MDPI, vol. 19(18), pages 1-21, September.
    5. Lee, Chien-Chiang & Wang, Chih-Wei & Thinh, Bui Tien, 2023. "Green development, climate risks, and cash flow: International evidence," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    6. Jin, Cheng & Luo, Shuangshuang & Sun, Kehan, 2023. "Energy Resources trade and investments for green growth: The case of Countries in the Asia-Pacific Economic Cooperation," Resources Policy, Elsevier, vol. 82(C).
    7. Mingyue Chen & Shuting Wang & Xiaowen Wang, 2024. "How Does Artificial Intelligence Impact Green Development? Evidence from China," Sustainability, MDPI, vol. 16(3), pages 1-23, February.
    8. Aziz, Ghazala & Sarwar, Suleman, 2023. "Revisit the role of governance indicators to achieve sustainable economic growth of Saudi Arabia – pre and post implementation of 2030 Vision," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 213-227.

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    More about this item

    Keywords

    Endogenous money generation; Credit; Symbolic consumption; Innovation; Inflation; Dual economy; Qualitative growth; Unstable economy;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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