Critically Assess the Development Potential of the 'Green Economy' For Localities and Regions - Essay Example

?Critically Assess the Development Potential of the 'Green Economy' For Localities and Regions College: Introduction A green economy can be defined as an economic model that improves the welfare of human beings while at the same time reducing any negative impacts on the environment. A green economy is consistent with sustainable development. In the past, countries have focused on economic growth and development as a way of eliminating poverty and raise the level of income for their citizens. Some of the strategies of economic development have resulted in environmental degradation and some of the negative effects on the environment are irreversible. The main objective of traditional economic models is increasing the level of gross domestic product. Many governments are now appreciating the fact that their economies have exceeded acceptable limits in terms of emission of greenhouse gases and exploitations of natural resources. Global recessions and financial crisis have caused many governments in both developed and developing countries to shift their focus to sustainable development (Ocampo 2010, p. 2; UNEP 2011). Sustainable development is a major concern in advanced economies. This is because these economies are responsible for the highest proportion of greenhouse gas emissions (Parker 2011). A green economy provides a channel through which many people can improve their standards of living while the planet becomes healthier. Local and regional development is a concern for many governments across the world. However, local and regional development is now more challenging, competitive, globalised and knowledge intensive. There is a shift in focus by many governments concerning local and regional development. Governments are now more concerned how sustainable their current level of development is as opposed to the magnitude of development. Concerns have been raised regarding the impact of economic development in nations on the environment following the increasing trend in global warming and sudden climatic changes (Christopherson 2011, p. 4). The long term prospects of sustainable local and regional development are uncertain. There are many contentions on whether a green economy is achievable or not. Those who support a green economy argue that it would result to social justice to individuals who have not benefited from globalization. The lives of such individuals will be improved if the planet is healthier. Supporters of a green economy are not concerned about how new jobs are distributed across regions but instead, they are concerned about saving the global climate. Critics of a green economy argue that it is unrealistic and unachievable with current economic structures and institutions (Pike & Tomaney 2010, p. 3). This paper critically analyses the development potential of a green economy in localities and regions. The Potential to Develop a Green Economy for Localities and Regions Gibbs (2002, p. 93) explores some of the guiding principles that would help localities and regions to shift towards sustainability. A sustainable society values unpaid work and gives its members access to work without causing harm to the local, national and global environment. A sustainable society also considers the environment in its provision of goods and services as well as other facilities such as sanitation and health care. Developing a green economy involves balancing between economic development and the environment. To achieve this balance, localities and regions must focus on conserving natural resources and control the flow of commodities. The local and regional governments should invest sufficient resources in improving the state of the environment (Gibbs 2002, p. 93) Gibbs (2002, p. 94) indicates that for regions and localities to develop green economies, they should apply some of the concepts of sustainable development including emphasizing on the environment, participation, futurity, and equity. Emphasizing on the environment involves considering the full and actual environmental costs of every economic activity in a locality or region. Every economic activity has a corresponding environmental cost. Regional and local governments should develop strategies of minimizing or eliminating where possible environmental costs of economic development to achieve a green economy. Futurity involves an approach to economic development where current generations maintain a certain level of capital stock that will be used by future generations. If all the capital stock is exhausted by the current generations, future generations will have no capital stock for their economic activities. Thus, societies will experience challenges in future economic development and may turn to exploiting resources from the environment (Gibbs 2002, p. 93). Participation means that every individual is actively involved in decisions that concern conserving the environment. Equity implies that regional and local governments provide social justice for intra and inter generations. A green economy has been described as one way of providing social justice to individuals that have not benefited from past economic development activities. Another guiding principle for sustainable local and regional economies is focusing on diversification in the long term. Localities and regions should also focus on how they will deal with adversities that may arise in future. This kind of focus will help local and regional economies to conserve some of their capital stock and resources that will facilitation diversification in future. Current policies should have a long term view of the issues that may arise in economic development (Gibbs 2002, p. 94). Gibbs (2002, p. 94) continues to indicate that increasing the level of self-sufficiency can help in achieving sustainability. Self –sufficiency enable local and regional economies to minimize on their resource use and avoid wastage. The transfer of inputs from one region to another will be minimized if a locality is self-sufficient. This saves energy and increases the speed of economic development while minimizing environmental costs. Localities and regions should respect integration between themselves. Gibbs (2006, p. 193) argues that economic geography can make a significant contribution to the current debates on environmental conservation. The theoretical foundation of economic geography can be used to advocate for the environment. The ecological modernization and regulation theory can be used to advocate for the development of policies that lead to the conservation of the environment. Gibbs’ point of view agrees with the argument that every individual in localities and regions should participate in making decision that concern the environment. In this case, economic geographers should use their knowledge to advocate for better policies in their localities and regions. Jackson (2009) argues that it is possible for countries to be prosperous without any economic growth if they do not consider the fact that resources are finite. Current governments should invest in sustainable prosperity that conserves resources for future generations. Prosperity should not be for a few people in a country but the entire population. Economic growth is associated with higher levels of income but the actual situation in countries is that there is unequal distribution of income. Jackson (2009) continues to indicate that to achieve sustainable economic growth, countries must develop sustainable macroeconomic policies. This includes investments in infrastructure and other assets that the public needs to engage in significant economic activities. Governments should be accountable to the public for their financial and fiscal policies. Jackson (2009) indicates that achieving sustainable economic growth requires that government address inequalities and build social capital as well as human capital. The culture of consumerism has resulted in adverse effects on the environment and thus, governments should develop policies that reverse this culture. Local and regional governments must respect ecological limits and protect their internal capabilities that will be useful in future economic growth. Providing employment opportunities should be among top priorities of these governments so that every individual has access to a reliable and stable source of income. In efforts to encourage consumers to participate in environmental conservation, governments have encouraged green consumerism. Consequently, consumers have turned to purchasing products labeled as organic or econ-friendly. However, this does not fully solve the environmental degradation associated with consumerism. The main cause of this form of environmental degradation is too much consumption of products and services and not the kind of products that consumers purchase (Mansvelt 2010, p. 238). Deutz and Gibbs (2008, p. 1313) portray econ-industrial parks as one way of achieving sustainable development. Such parks allow business to network and share resources while at the same time reducing the amount of waste that is directed to the environment. This is because the waste from one industry provides raw materials to another industry. Industries benefit from lower costs of production while the public benefits from a healthier environment. Econ-industrial parks can be used as a strategy of developing a green economy. Governments can support development of such parks through funding and other incentives as a way of encouraging sustainable development. Jonas, While and Gibbs (2011, p.283) indicate that environment regulation has become increasing important to regions and localities. Localities and regions have been striving for the past decade to incorporate the principles of sustainable development and environment conversation in all their policies and development plans. Jonas, While and Gibbs (2011, p.283) continues to indicate that some of the strategies that have been raised for developing green economies include eco-industrial parks, green jobs, and green infrastructure. Other strategies that localities and regions have adopted include alternative sources of energy such as bio fuels that have minimal environmental costs and environmental industry clusters. While some analysts have dismissed these efforts as a mere marketing, some policy makers and environmental believe that these strategies are necessary and effectively in help localities and regions to develop green economies. One of the major challenges that local and regional government have faced in their efforts to develop green economies is the preference of building global competitiveness over achieving environmental goals. Many countries are still focused on becoming more competitive in the global landscape and this has limited their capacity to develop a green economy. Jonas, While and Gibbs (2011, p.283) agree with Gibbs (2006, p. 193)’s point of view that economic geographic has a significant role to play in current and future environmental regulations. Jonas, While and Gibbs (2011, p.283) continue to indicate that restructuring of states and the emerging territorial carbon control regimes will make a significant contribution to sustainable development. These authors’ point of view implies that localities and regions have multiple ways through which they can establish a green economy. Despite the sharp criticism that local and regional governments have faced over the years, the current principles of sustainability are significant to building green economies. However, all sectors and individuals in a state or region must support efforts to conserve the environment. Policy makers have a major part to play in ensuring that the policies that concern economic development in a country incorporate aspects of sustainable development. The current emphasis on controlling carbon emission is a major step towards developing a green economy. However, some countries are still over too preoccupied with global competitive to cooperate with other countries in their region in conserving the environment (Bosetti et al 2009; Atkinson, Dietz & Neumayer 2007; OECD 2001). Regionalism has been criticized since the introduction of the idea and many analysts have taken regions for granted. However, Morgan (2004, 871) argues that cooperation within regions and among regions is important to sustainability. This means that governments cannot ignore the role of regionalism in their efforts to achieve sustainable development. States have different strategies that they can use to promote sustainable development. Sustainable development results in equitable distribution of resource while using less materials and energy. Morgan (2011, p.90) argues that many governments ignore the power of purchase, which is an effective strategy of achieving sustainability. Instead, many governments have concentrated on other aspects of sustainable development such as taxation and regulation. Rao (2010, p. 177) agree with this point of view and argues that public procurement is powerful lever of imparting behavior change in the private sector. The public sector is major market for goods and services that has not been tapped in terms of promoting sustainability. Governments can use their power of purchase to encourage the private sector to embrace sustainable development. For instance, governments can make decisions to buy products or services from private companies that are committed to the development of a green economy and have adjusted their production processes to minimize environmental costs. The agri-food is one potential sector that government can focus on in achieving sustainability through public procurement (Morgan, 2011, p.90; Great Britain Parliament 2010, p. 70). In efforts to achieve global sustainable development, The New Economics Foundation (2008) published The Great New Deal that describes three events that are likely to develop into catastrophes. These include the financial crisis, global climatic change and the decreasing oil production. The deal offers a solution to the deteriorating economies and degraded environment. Its propositions include structural changes to financial systems at both national and international levels. The other proposition in the deal is continuous investment in renewable energy for production and energy conservation (New Economics Foundation 2008). UNEP (2011) indicate the ability to develop a green economy varies across countries. This is because developing into a green economy depends on a country’s human and natural resources as well as its level of development. Some countries have managed to develop their human capital and achieve high levels of economic development. However, this has been done at the expense of the natural resources or capital. This limits the capacity of such countries to transition into a green economy. Some of the prerequisites of transition to a green economy include enhancing human welfare and social equity and reducing environmental risks as well as ecological scarcities. Local and regional governments have a role to play in developing supportive macroeconomic and fiscal policies that support environmental conservation (UNEP 2011; Cato 2009, p. 172; Newman 2011). Green economies have several benefits including increases in output and wealth, creation of decent jobs, poverty eradication. The efficient use of resources and investing in renewable energy are important to developing a green economy (Farmer 2011; United Nations 2010, p.28; OECD 2011). UNEP (2011)’s key findings on how countries can transition to green economies agree with the suggestions in The Great New Deal particularly on investing in renewable sources of energy and using natural resources efficiently. Resource efficiency is a broad strategy of sustainability that includes using energy and materials efficiently in the manufacturing sector and developing better strategies of managing industrial wastes. Other necessary conditions for developing a green economy include collaboration across regions in terms of aid, trade, providing support for capacity building, and market infrastructure. UNEP (2011) provides a blue print for countries that wish to transition into green economies. UNEP (2011)’s findings indicate that countries have made significant progress towards achieving a green economy. However, there is need to create a supportive internal environment for a green economy and encourage regional integration. The forest sector plays a very important role in the transition to a green economy. This sector was greatly affected by economic and financial crisis between 2008 and 2009 when the construction sector collapsed. The policies developed by governments on energy use and reversing changes in climate have direct effects on the forest sector. The forest sector has the potential to contribute to a green economy through its environmental, social, and economic benefits. The effects of government policies on forests are long term. This implies that government should consider the effects of their policies on forests before implementing them to avoid irreversible negative effects. Forests play an important role in global carbon cycles. However, many governments have underestimated their potential to contribute in building a green economy. There is need for such to recognize and exploit the potential of forests in reducing the emission of greenhouse gases (United Nations 2010). Green building can reduce environmental degradation as wood is a renewable raw material and is also eco-friendly. Wood energy is the leading renewable energy in the world that can be exploited further to enhance sustainability. Government policies on increased use of renewable energy as a strategy for sustainability should lay emphasis on the use of woo energy (United Nations 2010). The earth consists of biological and geological systems that absorb greenhouse gases in the atmosphere. Just like natural forests, these ecosystems have potential to make a significant contribution to a green economy if fully exploited. Human activities have interfered with carbon cycles as well as the natural transforming process of ecosystems. Consequently, the natural systems cannot absorb as much carbon as they should if there transformation process if uninterrupted (UNEP 2010). The quest for economic growth and development has resulted in high carbon emissions that natural systems can absorb. The intensive use of fossil fuels is a major source of increased carbon emissions across countries. Other human activities that interfere with carbon cycles include deforestation and agricultural activities that over-exploit land as a natural resource. The main solution to increased carbon emissions worldwide is to increase the capacity of ecosystems to absorb carbon. Natural ecosystems contribute to carbon emissions but they are only absorbing sinks all the carbon emissions from natural and human processes. Ecosystems provide multiple benefits and adaptation mechanisms to humanity. They can also be used to improve human welfare and eradicate poverty, which are prerequisites for a green economy. Localities and regions can exploit the potential of ecosystems as a contributor to a green economy by reducing greenhouse gas emissions (UNEP 2010; Archer 2010, p. 103). Other strategies of conserving ecosystems include reducing the use of fossil fuels, deforestation, and environmental degradation. Localities and regions should also promote the use of ecosystem-based adaptations in all sectors of their economies. The development of economic policies in localities and regions should focus of nature-based solutions to issues. The local and regional governments should develop ways of fostering economic growth and jobs creations from activities aimed at restoring ecosystems. This means that the restoration of ecosystems should results in higher levels of economic growth and employment. Consequently, governments will manage to raise the level of incomes, improve the well-being of nationals and eradicate poverty (UNEP 2010; Field & Raupach 2004, p. 1). Ramlog (2004, p. 34) is critical about the new emphasis on sustainable development across nations. The idea has been presented as a policy miracle that would create immediate harmony between economic development forces and environmental conservation forces. Environmentalists are concerned about the hasty adoption of this philosophy in developed and developing nations. Sustainable development or developing a green economy involves imposing constraints on economic developments. In other words, if countries are to adopt all aspects of sustainable development, they will have to forego some of their economic activities. Some economic activities associated with high environmental costs cannot be changed to suit the goals of sustainable development and must be halted if countries are to achieve sustainable development. However, many countries have not considered this aspect of a green economy. Nations have hastily adopted the idea of sustainable development without considering the potential negative effects of this idea on the economic well-being of the citizens. Ramlog (2004, p. 35) argues that countries cannot achieve sustainable development and improve the living standards of their nationals as the philosophies without corresponding policies of redistributing power and wealth. This implies that as long as there in unequal distribution of power and wealth, sustainable development would not lead to better living standards as suggested by proponents of a green economy. Wealth and power redistribution would require radical structural and institutional changes in countries. Without changes, countries may not meet the requirements of sustainability. Unfortunately, many countries have adopted the idea of sustainable development but they are unwilling to commit themselves to equal distribution of wealth and power. Incompetent political systems have ignored the unequal distribution of resources. Another challenge to sustainable development is achieving a level of economic growth that will sustain high living standards for all individuals without causing harm to the environment. This level of economic growth is a challenge to many countries that do not have sufficient resources to implement sustainable development. For instance, most of the developing countries do not have enough resources to tap into renewable energy sources and depend solely on them for all their economic activities (Ramlog 2004, p. 35; Morriss 2011; Adams 2001). To overcome the challenges of achieving sustainable development, governments should integrate environmental and developing policies at theoretical and practical levels. This means that practicality of sustainable development policies should be considered as well as their effect on economic welfare of the citizens. Local and regions governments should not ignore the needs of their subjects in their efforts to build a green economy. They should ensure that there are structures and policy implementation strategies that will lead to equal distribution of wealth even after a green economy is achieved (Ramlog 2004, p. 36; Leonard & Barry 2010, p. 111).Transitioning into a green economy is associated with high costs and uncertainties. Businesses expect high commercial rates in future. The costs of marketing green energy sources and products is estimated to be high and this has discouraged many business from participating in reducing activities that lead to environmental degradation. Thus, government should develop environmental- based standards and regulations that will encourage businesses to participate in developing a green economy. Market incentives can also help in reducing the risks involved in shifting to green products (Chou, Trappey & Pokojski 2009, p. 218). The Future Development of Hull as a Green Economy Hull is one the economies that have made significant efforts to transition into a green economy. Over the years, Hull has invested in using renewable sources of energy such as wind and marine energy in its economic activities. Siemens plans to develop an offshore wind turbine manufacturing unit at the Port of Hull. Siemens will work in partnership with Associated British Ports (ABP) to establish the manufacturing and export facilities. Siemens has been in operation in the UK for over 168 years and has over 16,000 employs. ABP is the leading ports group in the UK that handles over 150 million tonnes every year. The collaboration of these two companies will make Hull one of the leading countries in the exploitation of marine and wind energy. Hull stands out as an example of an economy that is the process of transition itself into a green economy by implementing one of the main strategies of sustainable development, which is maximizing the use of renewable sources of energy (Siemens 2012). Siemens intends to establish a plant worth ? 80 million which will be a cluster of many renewable businesses. Consequently, this plant will make a significant contribution to Hull efforts to develop a green economy and create many new job opportunities for the citizens. Siemens intends to establish this plant by the end of year 2014 and create over 700 jobs in the process. The manufacturing plant will assemble turbines that will be stationed in large wind farms located in the North Sea. The manufacture of the turbines will greatly increase the capacity of Hull to tap and exploit wind energy. The level of wind energy production and utilization will go up by significant margins in the coming years and reduce the necessity of using other forms of energy that result in environmental degradation. The establishment of the manufacturing and export plant will not only be beneficial to Siemens but other business in the Humber area as well. The establishment of the plant will require supporting services and operations from other companies. Thus, more jobs will be created indirectly to meet the new demand for supportive services and products (Footprints Renewables 2011). If Siemens implements its plan successfully, the Humber area will emerge as the leading source of renewable including wind, tidal, and wave energy in the UK and across the world. The Renewable Networks is a networking group of over 200 businesses that assists business to enter into the renewable energy industry. Siemens is working with this networking and this means that the business therein will benefit and expand their operations with the establishment of the manufacturing. This means that Hull’s market for renewable energy will expand in the coming years. Siemens is one of the leading and first rated companies in Hull. Its involvement in renewable energy will boost the confidence of other companies in Hull and in other parts of UK to enter the renewable energy industry. Siemens will also encourage other companies in the private sector to support initiatives of establishing Hull as a green economy in future. Therefore, the involvement of Siemens is crucial Hull’s success in transitioning itself into a green economy (Footprints Renewables 2011). Conclusion and Recommendations The concept of developing a green economy has been adopted in many localities and regions. The development of green economies is associated with improved standards of living and job creations. Most of the strategies of developing a green economy are consistent with the strategies of sustainable development. Sustainable development involves achieving higher levels of economic development without causing environmental degradation. Analysts and environmentalists differ on the possibility of achieving green economies in all localities and regions. The opponents of a green economy argue that nations have quickly embraced the concepts of a green economy and sustainable development without considering the adverse effects on economic growth. The absence of supportive institutions, policies, political leadership and strategies of equality has fueled criticism against developing green economies. The proponents of developing green economies have given various recommendations on strategies through which localities and regions can transition to green economies. Some of these strategies include encouraging self-sufficiency, reducing consumerism, reducing carbon emission, efficiency in energy and resource use as well as proper management of ecosystems. Econ-industrial parks, green infrastructure, carbon regimes, using renewable energy, and green jobs have also been recommended as potential ways of developing green economies. Environmentalists indicate that for regions and localities to develop green economies, they should apply some of the concepts of sustainable development including emphasizing on the environment, participation, futurity, and equity. Some of the prerequisites of transition to a green economy include enhancing human welfare and social equity and reducing environmental risks as well as ecological scarcities. Hull is an example of an economy that has made significant progress in building a green economy. Siemens’ plan to establish a manufacturing and export facility in Hull will significantly contribute to its development as a green economy. There is potential to develop green economies across regions and localities. However, governments must prioritize environmental conservation over global competitiveness. The effects of green economies on economic activities that citizens depend on for their livelihood should be considered as governments embrace sustainable development. Policy makers have a major role to play in ensuring that there are supportive policies that fuel sustainable development. Governments should integrate environmental and developing policies at theoretical and practical levels. Incentives and econ-friendly standards in local and international markets are necessary to encourage business to participate in conserving the environment. References Adams, W, M 2001, Green development: environment and sustainability in the third world, Routledge, London Archer, D 2010, The global carbon cycle, Princeton University Press Atkinson, G., Dietz, S & Neumayer, E 2007, Handbook of sustainable development, Edward Elgar Publishing Bosetti, et al 2009, Modelling sustainable development: transitions to a sustainable future, Edward Elgar Publishing Cato, M, S Green economics: an introduction to theory, policy and practice, Earthscan Chou, S., Trappey, A & Pokojski, J 2009, Global perspective for competitive enterprise, economy and ecology: proceedings of the 16th ISPE international conference on concurrent engineering, Springer Christopherson, S 2oo6, “Green dreams in a cold light” in Pike, A., Rodriguez-Pose, A & Tomaney, J 2006, Local and regional development, Taylor & Francis, United Kingdom. Deutz, P & Gibbs, D 2008, “Industrial ecology and regional development: Eco-industrial development as cluster policy”, Regional Studies, Vol. 42, pp. 1313-1327. Farmer, M 2011, Down in the dumps….what green economy? AuthorHouse Field, C & Raupach, M, R 2004, The global carbon cycle: integrating humans, climate, and the natural world, Island Press Footprints Renewables 2011, Siemens factory will make Hull ‘world leader’ for marine renewable energy, Viewed April 8, 2012 http://www.footprintrenewables.co.uk/news/127/Siemens_factory_will_make_Hull_world_leader_for_marine_renew.php Gibbs, D 2002, Local economic development and the environment, Routledge, London. Gibbs, D 2006 “Prospects for an environmental economic geography: Linking ecological modernisation and regulationist approaches”, Economic Geography, Vol. 82, No. 2, pp. 193-215 Great Britain Parliament, 2010, Low carbon technologies in a green economy. The Stationery Office Jackson, T 2009, Prosperity without Growth: economics for a finite planet, EarthScan Jonas, G., While, A, H & Gibbs, D 2011, “Carbon control regimes, eco-state restructuring and the politics of local and regional development”, in Pike, A, Rodriguez-Pose, A & Tomaney, A (Eds.), Handbook of local and regional development, Routledge, London. Leonard, L & Barry, J 2010, Global ecological politics, Emerald Group Publishing Mansvelt, J 2010, Green consumerism: an A-to-Z guide, SAGE, Thousand Oaks Morgan, K 2004, ‘Sustainable regions: governance, innovation and scale’, European Planning Studies, Vol. 12, No. 6, pp. 871-919. Morgan, K 2011,“The Green State: Sustainability and the power of purchase” in Pike, A, Rodriguez-Pose, A & Tomaney, A (Eds.), Handbook of local and regional development, Routledge, London. Moriss, A 2011, The false promise of green energy, Cato Institute New Economics Foundation, 2008, A Green New Deal, NEF: London. Newman, J 2011, Green ethics and philosophy: an A-TO-Z guide. SAGE, Thousand Oaks Ocampo, J 2010, The forest sector in the green economy, United Nations Publications, New York Organsation for Economic Co-operation and Development(OECD) 2001, Policies to enhance sustainable development, OCED Publishing Organsation for Economic Co-operation and Development(OECD) 2011, Towards green growth, OECD Publishing Parker, L 2011, Greenhouse gas emissions: perspectives on the top 20 emitters and developed versus developing nations, DIANE Publishing Ramlog, R 2004, The developing world and the environment: making the case for effective protection of the global environment. University Press of America Rao, P, K 2010, The architecture of green economic policies, Springer Siemens 2012, Siemens selects ABP as preferred bidder for UK wind turbine factory, Viewed April 8, 2012 http://www.siemens.co.uk/en/news_press/index/news_archive/ United Nationals Environment Programme (UNEP) 2010, The role of ecosystems in developing a sustainable ‘green economy’, UNEP Policy Series United Nationals Environment Programme (UNEP) 2011, Visions for change-recommendations for effective policies on sustainable lifestyles, UNEP/Earthprint, New York United Nations 2010, Report of the governing council of the United Nations Environmental Programme on the eleventh special session (24-26 February 2010), United Nations Publications, New York United Nations 2010, The forest sector in the economy, United Nations Publications, New York United Nations Environment Programme (UNEP)2011, Towards a green economy: pathways to sustainable development and poverty eradication, UNEP: New York. Read More