Topic 4 Green Economy VS Green Growth

The main reason behind the emergence and development of the concept of green economy and green growth is the movement towards a more integrated and comprehensive approach to incorporating the environment in economic processes. Both concepts aim to identify possible ways of improving the results of economic activity having in mind the existing climatic problems and increasing deficiency in natural resources, mainly through resource- and energy-efficient technological innovations. The concepts of green growth and green economy are linked by the fact that  they are promoted as a remedy to financial and economic crisis (Lane, 2010).

  • Green economy aims at economic transformation to foster improvement of social welfare and justice, at the same time considerably reducing environmental threats and ecological deficiencies.
  • Green Growth Strategy is continuing economic growth, and simultaneously recognising the role of natural capital in planning processes and national accounts.

According to Allen and Clouth (2012), although green economy and green growth are terms of different origin, that is, they are the result of works of different organisations and different target groups, differences between these concepts have become unclear and they are now used almost interchangeably.

Watch this video by OECD on why Economic Growth must be Sustainable