An Introduction to the Green Economy

Science, Systems and Sustainability

Adrian C. Newton, Elena Cantarello

• Publisher: Routledge
• Year: 2014
• Print ISBN: 9780415711609
• eBook ISBN: 9781134654529
• Edition: 1
• Topic: Biological Sciences
• Subtopic: Environmental Economics
• Index: Biological Sciences

The green economy is widely seen as a potential solution to current global economic and environmental crises, and a potential mechanism by which sustainable development might be achieved in practice. Considerable investments are now being made into the development of green technology, renewable energy, biodiversity conservation, resource efficiency, recycling of materials and green infrastructure.

This textbook provides a comprehensive introduction to the green economy, using a strongly interdisciplinary approach based on environmental science, rather than treating it as a sub-set of economics. The scientific principles of sustainability are presented, which provide the foundations of the green economy, with a particular focus on systems-based approaches. Examples of real-world case studies are used to illustrate how the green economy can be achieved in practice. In this way, the authors provide a thorough overview of both the principles and practice of the green economy, drawing from a wide range of disciplines including ecology, geography, social science, psychology, sustainability science, environmental science, law and economics.

The emphasis is on presenting results of the latest research, derived from leading scientific journals. Rather than focusing on a single definition of what constitutes a 'green economy', the book introduces readers to the diversity of opinion that exists, and engages them in what is an active, on-going debate. This reflects the fact that many aspects of the green economy, and sustainable development more generally, are currently contested. In particular, the book will help readers to strengthen their ability to critically evaluate the evidence for and against the views presented, and to actively contribute to the future development of the green economy.

1
INTRODUCTION

The term ‘green economy’ appears to have first been used by Pearce et al. (1989) in the title of their book, Blueprint for a Green Economy. However, the term ‘green economy’ is not explicitly defined or referred to in the book itself, which focuses on the concept of sustainable development. The term ‘green economy’ only became widely used following the global financial crisis of 2007–2008, which helped push it swiftly to the top of the political agenda. The financial crisis drove many countries into recession and into higher levels of debt, while also causing high numbers of job losses and widespread business failure. At the same time, it exacerbated a food crisis in many developing countries, as a result of rising food and fuel prices. These events coincided with increasing concern about the potential impacts of climate change caused by anthropogenic activities, particularly the increasing use of fossil fuels (UNEP, 2009). All these crises occurred against a backdrop of widespread and intensifying ecological degradation, and growing concern about its impact on human livelihoods (Millennium Ecosystem Assessment, 2005).

Development of the green economy was widely seen as offering a potential solution to these multiple global crises. For example, the United Nations Environmental Programme (UNEP) promoted the idea of ‘green stimulus packages’ as part of the economic recovery efforts, involving large-scale public investment in green technologies. In 2008, UNEP launched a ‘Green Economy Initiative’ to provide analysis and policy support for development of the green economy, and published A Global Green New Deal (Barbier, 2009, 2010). This identified the potential opportunity provided by these multiple crises, by supporting economic recovery while addressing other global challenges, such as reducing carbon dependency, protecting ecosystems and water resources, and alleviating poverty. This was identified as the only way of revitalising the global economy on a more sustained basis (Barbier, 2009). In 2011, UNEP’s Green Economy Initiative provided a detailed report on the green economy, with the aim of providing practical guidance to policy-makers (UNEP, 2011).

A number of other commentators similarly suggested that these events might offer an opportunity for a fundamental shift in the global economy (Homer-Dixon, 2007; Jones, 2009). At the same time, many authors have identified the numerous business opportunities that can be provided by the development of the green economy (Esty and Winston, 2006; Croston, 2008; Makower, 2009; Kane, 2010; Weybrecht, 2010). Today, the green economy is growing rapidly through the development of environmentally enhancing goods and services, including cleaner and more efficient technology, renewable energy, ecosystem- and biodiversity-based products and services, chemical and waste management, and the construction or retrofitting of ecologically friendly buildings (UNEP, 2011).

This chapter provides a brief introduction to the concept of a green economy, by considering how it might be defined and how it has become incorporated into policy. Some of the economic principles on which the green economy might be based are then briefly described, to provide a context for the rest of the book.

1.1 Definition of the green economy

At the outset of its use, the term ‘green economy’ was treated as synonymous with the concept of sustainable development, as noted above (Pearce et al., 1989; Jacobs, 1991). More recently, a variety of other definitions have been proposed, some of which are:

• UNEP (2011) defines a green economy as one that results in ‘improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities’. Put another way, a green economy is ‘low-carbon, resource efficient and socially inclusive’. Furthermore, ‘growth in income and employment are driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services’.

• The Green Economy Coalition (2012), which is a large multi-stakeholder alliance, defines the green economy as ‘one that generates a better quality of life for all within the ecological limits of the planet’. These authors highlight the need for green economies to improve human well-being, while also improving natural capital and systems.

• The United Nations Conference on Trade and Development (UNCTAD, 2010) defines a green economy as ‘an economy that results in improved human well-being and reduced inequalities, while not exposing future generations to significant environmental risks and ecological scarcities. It seeks to bring long-term societal benefits to short-term activities aimed at mitigating environmental risks’.

• The International Chamber of Commerce (2011) defines the green economy from a business perspective, as ‘an economy in which economic growth and environmental responsibility work together in a mutually reinforcing fashion while supporting progress on social development’.

The Danish 92 Group (2012) defines the green economy as:

not a state but a process of transformation and a constant dynamic progression. The green economy does away with the systemic distortions and dysfunctionalities of the current mainstream economy and results in human well-being and equitable access to opportunity for all people, while safeguarding environmental and economic integrity in order to remain within the planet’s finite carrying capacity. The economy cannot be green without being equitable.

UNU-IHDP (2012) define a green economy as:

one that focuses on enabling people around the world to pursue and achieve lives that are meaningful to them, while minimizing humanity’s negative impacts on the environment. It is an economy that is measured against the yardsticks of human well-being and its productive base. It is an economy that is anchored by a passion for equity and a celebration of ingenuity.

Chapple (2008) defines the green economy as:

the clean energy economy, consisting primarily of four sectors: renewable energy (e.g. solar, wind, geothermal); green building and energy efficiency technology; energy-efficient infrastructure and transportation; and recycling and waste-to-energy. The green economy is not just about the ability to produce clean energy, but also technologies that allow cleaner production processes, as well as the growing market for products which consume less energy. Thus, it might include products, processes, and services that reduce environmental impact or improve natural resource use.

These different definitions highlight the lack of consensus about precisely what the green economy entails. Rather, this is an area of active debate. For many commentators, particularly those in the business community, the green economy is synonymous with the ‘clean energy’ economy, as described by Chapple (2008). Many of the definitions listed above, however, also refer to the goals of improving human well-being and social equity. Many also explicitly mention the environment, by referring to the concept of environmental limits or carrying capacity.

Reflection point

Which of these definitions do you think best describes the green economy? How might these definitions be improved? You are encouraged to continue to consider these questions, as you consult other chapters of this book.

As noted by Peters and Britez (2010), the existence of various definitions indicates that the term ‘green economy’ is ambiguous and can contain multiple meanings. It is therefore important to consider what is being meant by people when they use the term, particularly when they do not provide an explicit definition. It is also important to remember that there is also a political dimension to the concept. For example, Peters and Britez caution that it could be used as an empty rhetoric device, to justify the political primacy of certain countries within the global economic system. A key issue, which is hidden within these definitions, is whether an effective green economy can be constructed within the current capitalist economic system, or whether the system requires a profound restructuring. This relates to the widely held view that green technology, such as forms of clean energy, are sufficient solutions for the current global environmental problems, widespread poverty and social inequality. The explicit incorporation of social equity and environmental quality in many definitions of the green economy is evidence of a counter-view.

Reflection point

When politicians refer to the green economy, which definition do you think they have in mind?

Other related concepts have also been widely used, including ‘green growth’ and the ‘low carbon economy’. For example, in 2010, the Global Green Growth Institute (GGGI; http://gggi.org/) was established as a new international organisation, which is dedicated to pioneering and diffusing a new model of economic growth in developing and emerging countries, known as ‘green growth’. This simultaneously targets poverty reduction, job creation and social inclusion, together with environmental sustainability, including mitigation of climate change and biodiversity loss, and security of access to clean energy and water. Similarly at the G20 Seoul Summit in 2010, government leaders recognised green growth as an inherent part of sustainable development, focusing on creating enabling environments for the development of energy efficiency and clean energy technologies. These countries devoted some US$522 billion to such objectives as part of the fiscal stimulus measures undertaken in 2008–2009 (Allen and Clouth, 2012). A number of other international organisations have also focused on green growth, including the World Bank (2012) and the OECD (2011).

A range of different definitions for green growth have been proposed, including (Allen and Clouth, 2012):

• UNESCAP: growth that emphasises environmentally sustainable economic progress to foster low-carbon, socially inclusive development.

• OECD: fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.

• World Bank: growth that is efficient in its use of natural resources, clean in that it minimises pollution and environmental impacts, and resilient in that it accounts for natural hazards and the role of environmental management and natural capital in preventing physical di...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• List of figures
• List of tables
• Acronyms and abbreviations
• Preface
• 1 Introduction
• 2 Sustainability science
• 3 Climate change and carbon management
• 4 Biodiversity and ecosystem services
• 5 Green technology and renewable energy
• 6 Environmental law and social justiceWith Kate Forrester, Chris Shiel and Tilak Ginige
• 7 The green economy in practiceWith Kate Forrester and Kathy Hodder
• 8 Outlook for the green economy
• Index