<p>Green Policies Good for Economy Too</p> (Download PDF)

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Green Policies Good for Economy Too

  • The economies are shut down due to coronavirus pandemic.

  • According to a study by Oxford University, Countries across the world can boost their economies better by including climate friendly policies in recovery package.

  • So inclusion of climate friendly policies with economic recovery packages will be better for economy and environment.

Green policies good for economy too

Green policies good for economy too

Overview

  • As compared to traditional fiscal stimulus, green projects

    • Create more jobs

    • Delivered higher short-term returns per dollar

    • Led to increased long-term cost savings

  • The inclusion of green measures in the next six months will also determine if the worst impacts of global warming can be avoided.

  • In a study of economic and climate impact of green measures inclusion in the route out of crisis, 700 stimulus policies were catalogued into 25 broad groups.

  • A global survey of 231 experts from 53 countries was conducted.

  • The study mainly focused on reduction of greenhouse gas emissions as the key environmentally-beneficial criteria.

  • The green policies have

    • Large return on investment

    • Can be enacted quickly

    • Have strong, positive impacts on the climate

  • Some examples of renewable energy production are

    • Wind energy

    • Solar energy

  • As the clean energy infrastructure is labour intensive, it will create twice as many jobs per dollar as fossil fuel investment.

  • According to the study, some types of fiscal recovery packages offer

    • High economic multipliers

    • Positive climate impact

  • Five such policy types are given below

    • Clean physical infrastructure investment in the form of renewable energy

    • Investment in education and training to deal with immediate unemployment from COVID-19.

    • Building efficiency spending for renovations and retrofits including improved simulations, heating and domestic energy storage systems.

    • Investment in natural capital for ecosystem resilience and regeneration including restoration of carbon rich habitats and climate friendly agriculture.

    • Clean R & D spending

  • For developing countries some other policies were highly ranked. E. g.

    • Rural support scheme spending

    • Sustainable agriculture.

  • Regardless of theoretical potential poorly designed recovery measures are highly unlikely to deliver economic, climate and social outcomes.

  • A recovery plan is needed which is-

    • Sustainable

    • Resilient

    • Just

    • Climate smart

- Published/Last Modified on: August 9, 2020

Economy, Environment/Ecology, Down-to-Earth

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