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.