Green Growth: An Assessment

Date: 01 September 2014

‘Green growth’ is almost tautologically required for global welfare to rise in the long run. Economic growth is desirable, not least because over 1 billion people still live in conditions of poverty. Undermining the ecological basis for human civilization will damage human welfare and further undermine economic growth. There are large adverse environmental externalities from economic activity that affect human welfare directly and indirectly through lower measured output. Finding ways to tackle these externalities will enhance wellbeing and allow continued growth of GDP while preserving aggregate natural capital. However, achieving this goal presents societies with major challenges. The composition of GDP is likely to have to change significantly, with more emphasis on new ideas and less on increased material throughputs. The role of the state in a ‘green growth’ transition will have to go beyond internalizing externalities to ‘get prices right’. The necessary transformation will ...

Cameron Hepburn Alex Bowen

Economics of Sustainability

Green Growth: An Assessment

Type: paper

Bowen, A. & Hepburn, C. (2014). ‘Green growth’. Oxford Review of Economic Policy, 30(3), pp.1–16.

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