a branch of economic development that focuses on environmentally sustainable development. The vision for a green economy is to generate growth and improve people's lives in an environment-friendly manner.
Green Economics Details
Green economics urges infrastructure development in the public and private sectors to reduce the overall carbon emissions. It focuses on the prevention of any loss to biodiversity and the ecosystem during economy-building activities. Supporters of this branch of economy encourage the co-existence of humans and nature sustainably. Green economists argue that the environment plays a crucial role in the development of any economy. People should not carry out any economic development activity and overlook its environmental impacts.
Supporters of green economics may also believe that the current economic model is focused solely on increasing its region's GDP. This system of development is not sustainable and often comes at the cost of environmental degradation. A green economy was created as a remedy for these problems and has brought about several institutional reforms and regulations to reduce the environmental impact caused by rapid economic growth.
Real World Example of Green Economics
Several countries are involved in green growth strategies aimed at reducing carbon emissions from various economy-building activities. This is born out of a growing concern that humans are reaching planetary limits in terms of usage of natural resources like water, forests, land, etc.
China invests in renewable energy resources more than any other country. Many countries like China believe that clean energy and sustainable development will be major growth factors in the next decade. Several countries have also adopted a 5-10 year plan for green growth, focusing on developing strategies to provide a boost to renewable energy resources.
India is one of the worst-hit countries in terms of pollution. A major source of India's energy demand is met through coal which is a serious challenge to green and sustainable growth. India is looking to expand its renewable energy resources, with a target of 175 GW capacity by 2022. The Indian government has set up a "clean energy fund," which is managed by the Finance Ministry of India to help trigger a green growth revolution and achieve the renewable energy expansion targets.
Significance of Green Economics
Over the past 20 years, the world's economic growth has increased significantly, giving over 1.2 billion people more opportunities to grow personally and financially. This growth, however, has not been inclusive enough. Over a billion people still live in extremely poor conditions with no electricity and proper sanitation. Economic growth has also come at the expense of the environment.
A green economy is a growth pattern that supports economic development and also aims to reduce environmental risks and scarcities. In the coming decades, green growth and sustainable development will be key strategic points for all countries. Several studies have shown that we can only eradicate poverty if the growth is sustainable and inclusive. The critical factors in achieving this sustainable growth include remote access to energy, responsible resource management, and proper governance.