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A Framework for Assessing Green Growth Policies

Author

Listed:
  • Alain de Serres

    (OECD)

  • Fabrice Murtin

    (OECD)

  • Giuseppe Nicoletti

    (OECD)

Abstract

This paper proposes an analytical framework for assessing policies that will contribute to a better integration of environmental externalities in the pursuit of economic efficiency and growth objectives. The framework consists of two parts. The first part lays out principles and criteria for the identification and selection of policies that will benefit both income and the environment or that will boost income at the least cost in terms of the environment (and vice-versa). In general putting a price on a pollution source or on the over-exploitation of a scarce resource is found to be the most efficient single policy to address many environment externalities. However, given that environmental damage often result from several interacting market failures, an appropriate policy response will in many cases involve a mix of complementary instruments. The second part focuses more on issues of structural adjustment related to the transition towards a greener economy. It finds that green growth policies could lead to significant re-allocation of resources within and across broad economic sectors. A policy framework facilitating the re-deployment of labour across firms and sectors, as well as the entry of new firms and the exit of firms in declining industries will thus be important in order for countries to seize the opportunities brought about by green growth policies. Un cadre d'analyse pour évaluer les politiques de la croissance verte Cette étude propose un cadre d’analyse pour évaluer les politiques pouvant contribuer à une meilleure intégration des externalités environnementales dans la poursuite d’objectifs d’efficience et de croissance économique. Le cadre suggéré comporte deux volets. Le premier établit un certain nombre de critères et principes permettant l’identification et le choix de politique qui soient bénéfiques à la fois pour le revenu et l’environnement, ainsi que celles pouvant stimuler la croissance des revenus au moindre coût en termes de qualité de l’environnement (et inversement). De manière générale, la politique la plus efficace en ellemême pour prendre en compte diverses externalités environnementales consiste à mettre un prix à l’émission de pollution ou la sur-exploitation d’une ressource naturelle. Toutefois, dans la mesure où les dommages environnementaux résultent dans bien des cas de l’interaction de plusieurs défaillances de marché, la réponse la mieux adaptée aux circonstances comportera généralement plusieurs instruments de politiques. Le deuxième volet explore les questions d’ajustement structurel que pose la transition vers une économie plus verte. Pour tirer parti des possibilités offertes par une éventuelle restructuration, les politiques facilitant l’entrée de nouvelles firmes et la sortie de firmes dans les secteurs en déclin joueront un rôle important.

Suggested Citation

  • Alain de Serres & Fabrice Murtin & Giuseppe Nicoletti, 2010. "A Framework for Assessing Green Growth Policies," OECD Economics Department Working Papers 774, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:774-en
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    File URL: http://dx.doi.org/10.1787/5kmfj2xvcmkf-en
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    3. Boris Cournède & Antoine Goujard & Álvaro Pina, 2013. "How to Achieve Growth- and Equity-friendly Fiscal Consolidation?: A Proposed Methodology for Instrument Choice with an Illustrative Application to OECD Countries," OECD Economics Department Working Papers 1088, OECD Publishing.
    4. Valeria Costantini & Francesco Crespi & Elena Paglialunga, 2017. "The Employment Impact Of Private And Public Actions For Energy Efficiency: Evidence From European Industries," Departmental Working Papers of Economics - University 'Roma Tre' 0227, Department of Economics - University Roma Tre.
    5. Robert P. Hagemann, 2012. "Fiscal Consolidation: Part 6. What Are the Best Policy Instruments for Fiscal Consolidation?," OECD Economics Department Working Papers 937, OECD Publishing.
    6. Don Drummond & Evan Capeluck & Matthew Calver, 2015. "The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth," CSLS Research Reports 2015-11, Centre for the Study of Living Standards.
    7. Luiz de Mello, 2013. "What Can Fiscal Policy Do in the Current Recession? A Review of Recent Literature and Policy Options," Hacienda Pública Española, IEF, vol. 204(1), pages 113-139, March.
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    17. Sutherland, Douglas, 2012. "Fiscal Consolidation Needs and Implications for Growth," MPRA Paper 38745, University Library of Munich, Germany.
    18. Francesco Crespi & Claudia Ghisetti & Francesco Quatraro, 2015. "Taxonomy of implemented policy instruments to foster the production of green technologies and improve environmental and economic performance," WWWforEurope Working Papers series 90, WWWforEurope.

    More about this item

    Keywords

    competitiveness; compétitivité; cost-effectiveness; croissance verte; défaillances de marché; efficacité par rapport aux coûts; environmental externalities; environmental taxes; externalités environnementales; fiscalité environnementale; green economy; green growth; market failure; économie verte;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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