Green Economy Research Paper: April 2020

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Green economy research paper
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The International journal of analytical and experimental modal analysis ISSN NO:0886-9367
RESEARCH PAPER COVER PAGE
Research Paper Title: Green Economy
Author’s Name : Dr. Mukesh Agarwal
Designation and Affiliation: Assistant Professor,
Dr. D Y Patil Vidyapeeth Global Business School & research centre
Contact No.: 91+ 9689926954
Email: mukesh.agrawal@dpu.edu.in
Volume XII, Issue IV, April/2020 Page No:127

RESEARCH PAPER
ON
GREEN ECONOMY
1) Abstract
Across the world, Green Economy concept has been gaining ground and India is no
exception. Green Economy is a development strategy which synergizes both
economic development and ecological sustainability. Stated objectives of
environment-friendly sustainable measures have, so far, largely not been met in
developing countries due to overpowering need of basic development priorities, lack
of fund flow from the developed world for mitigation and adaptation purposes, etc.
India is facing the problem of co-existence of the conventional economic growth
strategy and piecemeal efforts to make the economy ready to mitigate and adapt to the
climate change issues. In the context of existing globalization, it was found that the
existing production and consumption system cannot make the development a really
sustained and sustainable one. Adopting the multi-dimensional Green concept is
going to have ripple effects on employment, trade, agriculture, domestic industries,
business pattern, which, accordingly, require extensive fiscal reforms, vigilance on
changing international trade relations and trade patterns, skill development,
indigenous research and development for resource efficiency, political stewardship,
public awareness, etc. Judicious inclusion of sustainability factor into the ongoing
economic decisions for boosting infrastructure and manufacturing can set things
rolling for putting the Indian economy on the Green Economy path. The paper is a
preview about green economy based on the available information, supported with
similar example in other countries. While acknowledging the importance of
development of strategies to adopt the principles of Green Economy in tune with
stage of economic development, the paper indicates potential challenges faced by

Green Economy (in India) that will need appropriate government interventions (Dutta,
2016) [1].
2) Keywords
Green Economy, Sustainable Development, Ecological Sustainability, Economic

Development, Climate Change, Resource Efficiency.
3) Introduction
What is Green Economy? (UNEP) [2] [3] [4]
The green economy is defined by the United Nations Environment Programme

(UNEP) as one that results in “improved human well-being and social equity, while
significantly reducing the environmental risks and ecological scarcities” or “a low
carbon, resource efficient and socially inclusive economy.”
UNEP in its extended version defined a green economy as one in which “growth in
income and employment should be driven by public and private investments that
reduce carbon emissions and pollution, enhance energy and resource efficiency and
prevents the loss of biodiversity and ecosystem services.”
The green economy is defined as an economy that aims at reducing environmental

risks and ecological scarcities, and that aims for sustainable development without
degrading the environment.
Green Economy is closely related with ecological economics, but has a more
politically applied focus. The 2011 UNEP Green Economy Report argues "that to be
green, an economy must not only be efficient, but also fair. Fairness implies
recognizing global and country level equity dimensions, particularly in assuring a just
transition to an economy that is low-carbon, resource efficient, and socially
inclusive."
There is no standard agreed definition of Green Economy. A Green Economy can be

thought of as an alternative vision for growth and development; one that can generate

growth and improvements in people’s lives in ways consistent with sustainable

development. A Green Economy promotes a triple bottom line: sustaining and
advancing economic, environmental and social well-being.
Exhibit 1: The Three Pillars of Sustainability (UNEP) [2]
4) Problem Statement of the Study
Across the world there exist several economies. They may be developed, developing
and under-developed. They are all faced with difficulties in maintaining sustained
environment for living. So how the governments can use the concept of ‘Green
Economy’ is ensuring sustainable development for the mankind and protection of the
environment?
5) Literature Review
The International Chamber of Commerce (ICC) representing global business defines

green economy as “an economy in which economic growth and environmental
responsibility work together in a mutually reinforcing fashion while supporting
progress on social development” (ICC).[5]

In 2012, the ICC published the Green Economy Roadmap, containing contributions
from experts from around the globe brought together in a two-year consultation
process. The Roadmap represents a comprehensive and multidisciplinary effort to
clarify and frame the concept of “green economy”. It highlights the essential role of
business in bringing solutions to common global challenges. It sets out the following
ten conditions which relate to business/intra-industry and collaborative action for a
transition towards a green economy:
 Open and competitive markets

 Metrics, accounting, and reporting
 Finance and investment
 Awareness
 Life cycle approach
 Resource efficiency and decoupling
 Employment
 Education and skills
 Governance and partnership
 Integrated policy and decision-making
However, the success and failure of a green economy will depend on green
governance. It is about regulations that inhibit change, combined with a lack of
regulation that encourages more sustainable practices, often undermines progress
towards a Green Economy. To overcome these limitations, it is essential that business
organizations and community organizations can encourage policymakers to adopt
policies that support sustainable business practices and innovation.
UNEP (2012) [6] in their report writes “In a world where resources are gathered in
one country, processed in another, then sold as products manufactured in yet another,
there can be no doubt that protecting our planet, and the resources it provides, is
imperative. We live in a world now so interconnected that a drought or flood in one
part of the globe can soon challenge supply chains or move commodity markets in
another with profound implications for the poor and the vulnerable. It thus makes
sense that as we switch to a more resource efficient and Green Economy – one in
which economic growth, social equity and human development go hand-in-hand with

environmental security – business and industry will be a key driving force. People,
planet, profit is the mantra already adopted by many companies in the pursuit of
corporate sustainability, but if we are to truly transform the economic paradigm then it
needs to be adopted by many, many more. From corner stores, to medium-sized
enterprises and international conglomerates, there needs to be an understanding that
nature provides us with valuable resources and services that must be accounted for,
and that it is only by safeguarding these resources and services that we improve our
own livelihoods and those of future generations. It is clearly evident that countries and
their governments cannot afford to ignore the benefits that switching to a Green
Economy will bring.
6) Objective of Research
The main objective of this paper is to present the readers information about the
concepts of green economy and related information.
7) Research Methodology
This paper is based on secondary data gathered by the author. The news articles which
are related to green economy and ecological footprint has been reviewed for this
research paper.
8) Findings
Continuing Efforts to Support Green Economy
The Nagoya Protocol of Access and Benefit Sharing (ABS) and other emerging
environmental regulatory frameworks like Reducing Emissions from Deforestation
and Forest Degradation (REDD+) and Payments for Ecosystem Services (PES) are
innovative financing systems designed to incentivise conservation and the sustainable
use of natural resources (Nagoya) [7], (REDD+) [8], (PES) [9].
The core of the green economy paradigm is a two-pronged approach:

 The conservation of common chain resources granting rights to the indigenous
people and the local community of the ecosystem and ensuring that they are
incentivised.

 This is ensured by creating a flow of monetary and non-monetary benefits

from the commercial and research use of the resources for the community, in
the form of genes or carbon stocks.
The Nagoya Protocol takes the first step to secure green governance in a multilateral
environmental agreement by recognizing four key rights of communities. They are the
rights of communities to:
 Traditional knowledge associated with genetic resources.

 Genetic resources.
 Self-governance through customary laws and community protocols.
 Benefit from the utilization of their traditional knowledge and genetic resources
by third parties.
The green economy specifically relies on the diverse nature of services the ecosystem
provides.
What Does a Green Economy look like?
The transition to a Green Economy has a long way to go, but several countries are
demonstrating leadership by adopting national “green growth” or “low carbon”
economic strategies. The transition to a Green Economy has a long way to go, but
here are many examples of successful, large-scale programs that uses green economy,
to increase growth or productivity and do so in a sustainable manner (UNEP) [10],
(Bapna and Talberth, 2011) [11]. For example:
 The Republic of Korea has adopted a national strategy and a five-year plan for
green growth for the period 2009–2013, allocating 2 per cent of its gross
domestic product to investment in several green sectors such as renewable
energy, energy efficiency, clean technology and water. The government has
also launched the Global Green Growth Institute which aims to help countries
(especially developing countries) develop green growth strategies.

 In Mexico City, crippling congestion led to a major effort to promote Bus

Rapid Transit (BRT), a sophisticated bus system that uses dedicated lanes on
city streets. Significant public investment in the BRT has reduced commuting
times and air pollution and improved access to public transit for those less able
to afford private cars. This remarkable success is now being replicated in cities
across Mexico and has led to investment from the federal government in urban
public transit for the first time.
 China now invests more than any other country in renewable energy. Its total
installed wind capacity grew 64 percent in 2010. This growth is driven by a
national policy that sees clean energy as a major market in the near future, and
one in which China wants to gain a competitive edge.
 Namibia is managing its natural resources to generate economic, social, and

environmental benefits. Local communities across the country are granted the
right to use and capitalize on the benefits of using wildlife and other natural
resources within the boundaries of “communal conservancies.” With an
economic incentive to sustainably manage these areas, food and employment
is being provided for hundreds of thousands of Namibians in rural areas. More
than half of the jobs are filled by women, and wildlife populations have
increased.
 The North-East of India has a great potential to harness the green economy.
The entire region has an abundant natural capital flow, rich biodiversity and an
abundantly rich, diverse, ethnic, tribal community. Each ethnic community
extracts diverse ecological benefits for its distinct crafts. They craft distinct
products, but they hardly extract the potential profit. They need technical and
financial assistance with access to credit and markets. There is an abundant
opportunity to develop this region into a sustainable eco-tourism destination.
The green economy is in need of a modern global community and a set of
robust green governance principles to establish a climate-resilient natural
capital flow, so that the poorest of the poor and the marginalised have access
to the potential economic and ecological benefits. The green economy is about

bridging the gap between robust development and inequitable resource benefit
sharing. It will bring the most marginalised sections of society into the
mainstream.
Green Economy Issues and Way Forward
What are some of the issues concerns and tensions with the concept of a Green
Economy? Transnational Institute [12], (Hoffmann, 2011) [13], (Spash, 2007) [14]
One question people ask is “can we afford this?” We’re still in the wake of the global
financial crisis and many people perceive Green Economy solutions as expensive. The
United States is asking itself whether it can afford to put a price on carbon today.
Developing countries are concerned that transitioning to a Green Economy will hinder
economic growth and the ability to reduce poverty.
Moreover, there will be short-term, nontrivial losses associated with changes in

industry and market structure (e.g., a decline of the coal industry and related job
losses.) Supporting those actors who will bear the brunt of the transition will be
critical to building broad ownership for a Green Economy.
Some countries feel that they are lagging in green technology know-how and
therefore will be at a competitive disadvantage in the race for future markets. Others
feel that the Green Economy is a pretense for rich countries to erect “green” trade
barriers on developing country exports. These are all legitimate concerns that deserve
attention.
Ultimately, a hard-nosed economic analysis should inform decisions on what policies

and investments to promote today. When the full costs and benefits over time are
taken into account however, many Green Economy solutions will be seen as more
attractive. Nevertheless, there will still be difficult choices and tradeoffs. For
example, should India aggressively promote grid-connected, relatively expensive
solar power when hundreds of millions in the country still have no access to
electricity? And even where Green Economy solutions make economic sense, they
may be politically challenging. The transition to a Green Economy will not be easy.

Green economies require green energy generation based on renewable energy to

replace fossil fuels as well as energy conservation and efficient energy use. There is
justification for market failure to respond to environmental protection and climate
protection needs with the excuse that high external costs and high initial costs for
research, development, and marketing of green energy sources and green products
prevents firms from voluntarily reducing their ecological footprints.
What are the challenges to a transition to a Green Economy, and what will make
it possible? Transnational Institute [12], (Hoffmann, 2011) [13], (Spash, 2007) [14]
The principal challenge is how we move towards an economic system that will benefit
more people over the long run. Transitioning to a Green Economy will require a
fundamental shift in thinking about growth and development, production of goods and
services, and consumer habits. This transition will not happen solely because of better
information on impacts, risks or good economic analysis; ultimately, it is about
politics and changing the political economy of how big decisions are made.
The problem is vested interests. Those who benefit from the status quo are either
overrepresented in or have greater access to institutions that manage natural resources
and protect the environment. U.S. climate legislation, for example, was defeated in no
small part by resistance from fossil-fuel based energy advocates.
Some of the following measures may help create a more level policy-making playing
field:
Increase public awareness and the case for change.
Greater visibility on the need for this transition can motivate voters and consumers -
not just because of the costs but also the economic benefits generated by a Green
Economy, such as new jobs and new markets. People will not adopt policies because
they are green. They will do so when they believe it is in their interest.
Promote new indicators that complement Gross Domestic Product.
Planning agencies and finance ministries should adopt a more diverse and
representative set of economic indicators that focus less exclusively on growth and
track the pace and progress of development.

Open up government decision-making processes to the public and civil society.
This would help ensure policies are accountable to the public and not to vested and
well-connected interests.
Identify and take advantage of political leadership when available as this will be
crucial in order to limit the undue influence of “dirty” economic holdouts.
Timing is everything when it comes to big policy reforms. Green Economy advocates
will need to be ready when that window of opportunity presents itself.
Ultimately, the widespread transition to a Green Economy will depend on whether or

not the long-term public interest is reflected in today’s economic policies.
9) Conclusions (Bapna and Talberth, 2011) [11]
While the prevailing economic growth model focuses on increasing GDP above all
other goals, a Green Economy promotes a triple bottom line: sustaining and
advancing economic, environmental and social well-being.
The persistence of poverty and degradation of the environment can be traced to a

series of market and institutional failures that make the prevailing economic model far
less effective than it otherwise would be in advancing sustainable development goals.
These market and institutional failures are well known to economists, but little
progress has been made to address them. For example, there are not sufficient
mechanisms to ensure that polluters pay the full cost of their pollution.
There are “missing markets” – meaning that markets do not systematically account for
the inherent value of services provided by nature, like water filtration or coastal
protection. A “market economy” alone cannot provide public goods, like efficient
electricity grids, sanitation or public transportation. And economic policy is often
shaped by those who wield power, with strong vested interests, and rarely captures the
voice and perspectives of those most at risk.

10) Recommendations UNEP (2012) [6]

As stated earlier, it makes sense that as we switch to a more resource efficient and
Green Economy – one in which economic growth, social equity and human
development go hand-in-hand with environmental security – business and industry
will be a key driving force.
It is clearly evident that countries and their governments cannot afford to ignore the
benefits that switching to a Green Economy will bring.
A Green Economy attempts alleviate a wide range of problems through a variety of

institutional reforms and regulatory, tax, and expenditure-based economic policies
and tools.
11) Future Scope

It must be noted that while the concept of green economy is important and needs
significant policy support, there are still certain challenges in adoption and
implementation of it. Hence in future the scope for adoption and implementation and
related policy changes will be wider.
REFERENCES
[1] Dutta Satrajit (2016), ‘Green Economy’ In the Context of Indian Economy,
International Review of Research in Emerging Markets and the Global Economy
(IRREM), Vol. 2, Issue: 3 [ISSN: 2311-3200].
[2] United Nations Environment Programme (UNEP). Available from:
https://www.unenvironment.org. [Last accessed on 2020 March 10].
[3] Sustainable Development - United Nations Environment Programme (UNEP).
Available from: https://sustainabledevelopment.un.org/index.php?menu=1446. [Last
accessed on 2019 December 10].

[4] What is Green Economy? United Nations Environment Programme (UNEP).
Available from: https://www.unep.org/greeneconomy/what-inclusive-green-economy.
[Last accessed on 2019 December 10].
[5] ICC - International Chamber of Commerce. Available from: https://iccwbo.org.
[Last accessed on 2020 March 10].
[6] UNEP. (2012). The Business Case for the Green Economy, Sustainable Return on
Investment.
[7] Nagoya. The Nagoya Protocol of Access and Benefit Sharing (ABS). Available
from: https://www.cbd.int/abs/. [Last accessed on 2019 December 10].
[8] REDD+. Reducing Emissions from Deforestation and Forest Degradation.
Available from: http://redd.unfccc.int/. [Last accessed on 2019 December 10].
[9] PES - Payments for Ecosystem Services. Available from:
http://wwf.panda.org/what_we_do/where_we_work/black_sea_basin/danube_carpathi
an/our_solutions/green_economy/pes. [Last accessed on 2019 December 10].
[10] United Nations Environment Programme’s report on the Green Economy.
Available from: http://www.unep.org/greeneconomy/. [Last accessed on 2019
December 10].
[11] Bapna and Talberth (2014). Q&A: What is a "Green Economy?" by Manish
Bapna and John Talberth, April 2011. Available from:
http://www.wri.org/blog/2011/04/qa-what-green-economy-0. [Last accessed on 2019
December 10].
[12] Transnational Institute. "The Green Economy: the Wolf in Sheep’s clothing", by
Transnational Institute.
[13] Hoffmann U. (2011). “Some reflections on climate change, green growth
illusions and development space”.

[14] Spash C.L. (2007). Fallacies of economic growth in addressing environmental
losses: Human induced climatic change. Newsletter of the Australia New Zealand
Society for Ecological Economics (ANZSEE), no. May, 2-4 Archived 2013-11-03 at
the Wayback Machine.

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See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Green economy research paper

Conference Paper · April 2020

Mukesh vedprakash Agarwal

Conference paper View project

The user has requested enhancement of the downloaded file.

RESEARCH PAPER COVER PAGE

Research Paper Title: Green Economy

Author’s Name : Dr. Mukesh Agarwal

Designation and Affiliation: Assistant Professor,

Dr. D Y Patil Vidyapeeth Global Business School & research centre

Contact No.: 91+ 9689926954

Volume XII, Issue IV, April/2020 Page No:127

Volume XII, Issue IV, April/2020 Page No:128

Green Economy, Sustainable Development, Ecological Sustainability, Economic

What is Green Economy? (UNEP) [2] [3] [4]

The green economy is defined by the United Nations Environment Programme

The green economy is defined as an economy that aims at reducing environmental

There is no standard agreed definition of Green Economy. A Green Economy can be

Volume XII, Issue IV, April/2020 Page No:129

growth and improvements in people’s lives in ways consistent with sustainable

Exhibit 1: The Three Pillars of Sustainability (UNEP) [2]

4) Problem Statement of the Study

The International Chamber of Commerce (ICC) representing global business defines

Volume XII, Issue IV, April/2020 Page No:130

 Open and competitive markets

Volume XII, Issue IV, April/2020 Page No:131

Continuing Efforts to Support Green Economy

The core of the green economy paradigm is a two-pronged approach:

Volume XII, Issue IV, April/2020 Page No:132

 This is ensured by creating a flow of monetary and non-monetary benefits

 Traditional knowledge associated with genetic resources.

What Does a Green Economy look like?

Volume XII, Issue IV, April/2020 Page No:133

 In Mexico City, crippling congestion led to a major effort to promote Bus

 Namibia is managing its natural resources to generate economic, social, and

Volume XII, Issue IV, April/2020 Page No:134

Green Economy Issues and Way Forward

Moreover, there will be short-term, nontrivial losses associated with changes in

Ultimately, a hard-nosed economic analysis should inform decisions on what policies

Volume XII, Issue IV, April/2020 Page No:135

Green economies require green energy generation based on renewable energy to

Increase public awareness and the case for change.

Promote new indicators that complement Gross Domestic Product.

Volume XII, Issue IV, April/2020 Page No:136

Open up government decision-making processes to the public and civil society.

Ultimately, the widespread transition to a Green Economy will depend on whether or

9) Conclusions (Bapna and Talberth, 2011) [11]

The persistence of poverty and degradation of the environment can be traced to a

Volume XII, Issue IV, April/2020 Page No:137

10) Recommendations UNEP (2012) [6]

A Green Economy attempts alleviate a wide range of problems through a variety of

11) Future Scope

International Review of Research in Emerging Markets and the Global Economy

(IRREM), Vol. 2, Issue: 3 [ISSN: 2311-3200].

[2] United Nations Environment Programme (UNEP). Available from:

https://www.unenvironment.org. [Last accessed on 2020 March 10].

[3] Sustainable Development - United Nations Environment Programme (UNEP).

Available from: https://sustainabledevelopment.un.org/index.php?menu=1446. [Last

accessed on 2019 December 10].

Volume XII, Issue IV, April/2020 Page No:138

[4] What is Green Economy? United Nations Environment Programme (UNEP).

Available from: https://www.unep.org/greeneconomy/what-inclusive-green-economy.