Green Economics

Abstract

We all recognise environmental problems-the pollution of air and rivers, the destruction of rain forests, global warming. The article argues that environmental problems are less the result of inappropriate values than of an incorrect calculus, and that economic evaluation and economic instruments have a major role to play in the correction of that calculus.The green prescription of lower growth as a means of reducing environmental damage is dismissed—if higher output is often the cause of the problem, it is also what enables us to afford to deal with it. Policy should start from an adequate evaluation of the costs and benefits of action and inaction; the article instances nitrate in water, where the costs of rectification seem out of proportion to any likely benefit. Market mechanisms-such as taxes and tradeable licences—are often the best way of tackling environmental problems; but economists are sometimes as naive about their general applicability as non-economists about the effectiveness of prescriptive regulation.

Green Economic Development as the Framework for Green Finance and Green Investment

“…Moreover, the recovery of the global economy after the pandemic requires investments in projects of green economy and environmental sustainability. These investments should be aimed at green economic growth, social justice, inclusion and equity, environmental sustainability, and enhancement of psychological and cultural effects (Kay, Silberston, 1991).…”

“…Ponadto ożywienie gospodarki światowej po pandemii wymaga inwestycji w projekty zielonej gospodarki i zrównoważenia środowiskowego. Cele tych inwestycji powinny mieć na uwadze rozwój zielonej gospodarki, sprawiedliwość społeczną, włączenie społeczne i równość społeczną, równowagę środowiskową oraz wzmocnienie efektów psychologicznych i kulturowych (Kay, Silberston, 1991).…”

“…Organisations must be environmentally oriented towards sustainable development and green economy. They need to carry out investments aimed to facilitate the transition and to restore the ecological balance of the socioecosystems (Kay, Silberston, 1991). Industrial symbiosis (IS) is aimed at engaging traditional activities in physical exchanges of energy and materials flows, fostering eco-innovation, and encouraging networks of organisations to investment and change business practices, stimulating research and development, new joint ventures, and business (Lombardi, Laybourn, 2012).…”

Thinking Green

“…It assumes that the problems have arisen because past despoilers of the environment have placed a monetary rather than a moral value on the consequences. It is more valid to argue, as Kay and Silberston have [12], that the problems have arisen precisely through an inability to place a monetary value on such actions. The problem lies in establishing a direct connection between the originator of a polluting activity and the costs which that activity imposes.…”

“…With no disincentives to pollute either from public pressure, price signals, or true production costs, ministries and industrial concerns in the Warsaw Pact countries largely ignored the problems or, where emission limits existed, dealt with fines through bureaucratic sleight of hand [12]. The result, despite lower levels of development, has been catastrophic.…”