Working Paper: NBER ID: w17841
Authors: Stéphane Hallegatte; Geoffrey Heal; Marianne Fay; David Treguer
Abstract: Green growth is about making growth resource-efficient, cleaner and more resilient without slowing it. This paper aims at clarifying this in an analytical framework and proposing foundations for green growth. This framework identifies channels through which green policies can potentially contribute to economic growth. Finally, the paper discusses the policies that can be implemented to capture 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.
Keywords: green growth; sustainable development; environmental policies; economic growth
JEL Codes: D90; Q01; Q32; Q4
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| improving environmental conditions (Q56) | increased labor productivity (J24) |
| better forestry management (Q23) | reduced soil erosion (Q24) |
| reduced soil erosion (Q24) | more productive agriculture (Q11) |
| investments in environmental protection (F64) | shift in production frontier outward (D24) |
| shift in production frontier outward (D24) | economic growth (O49) |
| environmental policies (Q58) | economic output (E23) |