Economic policies to foster green growth
Going for Growth 2018
A clean and healthy environment is essential for supporting economic activity and well-being in the long-term. Practically every economic and leisure activity – as well as life itself - has broadly-defined environment as a key input and could not exist without it. However, the relationship between the environment and GDP growth per se is more complex.
Environment and Trade
With environmental threats on the rise, how can we attain both economic and environmental challenges in a global economy? Less stringent policies give an advantage to more pollution-intensive production, but at the expense of less polluting industries. Read more on whether stricter environmental policies hurt export competitiveness.
> Read the brochure on "How stringent are environmental policies" which presents new quantitative measures of environmental policy stringency (EPS) developed by the OECD.
Environment and Productivity
Greener growth requires stringent environmental policies that are flexible and minimise barriers to entry and competition. The choice and implementation of environmental policy instruments is likely to be crucial. Flexible, market based instruments such as taxes and trading schemes are found to be more friendly to productivity growth.
> Read more
Pollution Havens? Energy prices are not key drivers of offshoring
The Pollution Haven Hypothesis argues that firms will seek to avoid the cost of stringent environmental regulations (and high energy prices) by locating production in countries where environmental norms are laxer.
> Read the working paper here
Green Growth Working Papers