Can an Economy Ever Be Green - Essay Example

Can an economy ever be green? Name Institution Course Tutor Date Green economy is considered as an economy that creates a better quality of life for all its citizens within the ecological settings of the earth (Green Economy Coalition, 2012). Thus, greener economies must seek to improve levels of human wellbeing as well as natural capital and systems. This implies that synergies between environmental aspirations and growth must be sought which requires combined efforts of all stakeholders in an economy. As Scarpa (2009) notes growth in green economy is considerably diverse, often defined not only by products and jobs, but also by main private and public investments as well as government policies effecting adjustment in the market. In order to achieve a green economy, economic growth should try to reduce the overall use of resources in a manner that ensures use of natural resources remain in line with ecological carrying capacity (Chung and Lee, 2005). But is this attainable in present economies? This essay focuses on the possible ways of making an economy green amidst many challenges and also seeks to answer the question to whether an economy can become green. The concept of green economy is interpreted differently across governments at national level. However, according to Green Economy Coalition (2011) a green economy is founded on various principles of equity and poverty alleviation, inclusiveness, sustainable development, resilience and environmental limits. It also incorporates resource efficiency, sustainable production and consumption patterns, job creation as well as promoting national competitiveness. Although there is a close relationship between green economy and sustainable development, the former is not a substitute for the later. Thus, green economy may be conceived as the means through which sustainable development goals can be achieved. However, by and large these goals are yet to be realized by in many economies. Nevertheless, as the world faces the harsh reality of depletion of oil, world economies have to change from dependence on oil to using new sources of energy. In addition, increased worries concerning health hazards, environmental pollution, and climate change as a result of fossil fuels increases further the need for change (Gunderson, 2012). For instance, the United States has developed a plan to establish a renewable energy infrastructure intended to supply its population with energy requirements which is projected for 2030. It believes that the nation can produce adequate electricity by depending primarily on water, solar power and wind which are sustainably clean, natural as well as renewable. Although, developing such infrastructure requires close to $16.5 trillion, which is considerably high but the investment is considered worthwhile as far as green economy is concerned (Gunderson, 2012). As indicated earlier, building a green economy needs collaboration between governments and businesses. According to Green Economy Coalition (2010) there are a number of factors that have to be considered to realize a shift to a green economy otherwise the initiative is bound to fail. First, there must be changes in national policies and politics to achieve a green economy. Government leaders must show high level of commitment to achieving a green economy. This is an issue to do with politics where political leadership must display comparable political courage towards attaining a carbon-neutral development pathway. Policies to regulate industry should also be put in place. In the past decades, there was increased pressure in reducing production costs by focusing on cutting labour costs. Studies conducted by the European Union (EU) indicate that wages in Europe have been reduced increasing labour productivity by 300%. Despite this, energy efficiency has only managed to improve by 50% which is a bad indication (Green Economy Coalition, 2010). Therefore, this is an area that requires regulation if green economies have to be realized. Green economy may not be achieved without regulating trade in the economy. This implies that National trade policies have to consider social and environmental impacts of these policies on both consumer and producer countries (Houser, 2009). It is not enough to liberalize trade without initiating strong environmental safeguards as this can only escalate environmental crisis. For instance in undeveloped countries, having liberalization without the potential to enjoy market access as well as without the potential to mitigate the blow of adjustment is likely to damage social and economic prosperity (Green Economy Coalition, 2010). It is also important to develop green strategies for having a green economy. This is one of the ways in which a country can show her commitment to achieving a green economy. In deed, frequent oil crisis, climate change and environmental disasters has motivated a number of countries to begin incorporating sustainable development goals in national strategies and plans. A case in reference is Mauritius whose green development strategies were mainstreamed into her 2010 budget through a pillar dubbed “sustaining green Mauritius”. The budget included a fund meant to transform the country into a model sustainable state and in particular to promote efficiency as well as renewability in solid waste management, energy, water, agricultural practices as well as industrial processes (Green Economy Coalition, 2010). It is important to realize the fact that achieving a green economy is a process and may not happen on a click of a button as many could imagine. It is a transition that takes some time to be achieved. A transition to a green economy requires education and training, investment, dialogue and social training to facilitate changes in the traditional economy as well as accompany communities and workers in having a fair and green economy (Gunderson, 2012). In addition, an economy may actually be made green when energy production and consumption are changed. This is in consideration of the fact that production and consumption of energy contribute heavily to emissions of greenhouse gases. Interestingly, some countries have lived to this spirit and they are making their economies green by changing trends in energy production and consumption. For instance, the town of Woking in the UK according to Green Economy Coalition (2010) decentralized its energy production by establishing a system of local generators which are used to heat, light, power and cool both private and public building from different sources like wind, solar, biomass, hydrogen as well as natural gas. Therefore, it is something that can be achieved in an economy. According to Green Economy Coalition (2012) a green economy advocates measuring what matters. This requires redefining understanding concerning progress by considering human well-being as well as natural systems as key objectives. Through such measures, an economy is able to establish appropriate long-term priorities as regards public policy and investment. Thus measuring what matters help drive innovation in business sector, promote community resilience and jobs, and create wealth as well as enhance improvements in the management of natural resources. I strongly believe that nations can make their economies green by managing their economies by considering a broader indicator so as to avoid economic policy from undercutting the objectives of both social and environmental policy. Likewise, it would see to it that such nations become more sensitive to social and environmental opportunities and threats in effort to promote a green economy (Makower and Pike, 2009). It is really encouraging that different economies continue to utilize sustainable business models which actually promote decent work and opportunities that foster green economy. However, it is highly regrettable that most of these innovations in new business models have yet to be considered influential as they are still in their infancy (Green Economy Coalition, 2012). To increase the transition in high-potential systems like energy, transport, cities, housing and food requires long-term heavy investment enhanced through policy but guided by environment and community needs. Therefore, this means that a country should strive to green high impact sectors in an economy since it is through such sectors that the overall impact of green economy is felt (Mendonça and Sovacool, 2009). Neglecting these sectors would imply that a nation is less committed to promoting a green economy. Despite efforts to restore environmental sustainability across the world, some economies have consistently been blind to the worsening ecological decline (Giljum et al, 2008). The truth of the matter is that economies and people in these economies rely on nature in terms of food, stable climate, energy, clean water and air, and raw materials. Unfortunately, such economies cannot reflect this dependency while undertaking various economic activities and projects (Green Economy Coalition, 2012). Having a green economy requires ensuring favourable climatic conditions, environmental stability and continuous provision of goods and services to the environment. This can only be achieved through effective governance and resource-efficient, stable investment, and sensitivity of ecological sectors in working with natural world. In conclusion, it is true an economy may be green but this depends on many factors within a particular economy. As indicated, some countries are committed to ensuring that their economies are green through various policy initiatives of promoting environmental sustainability which is a clear show that all is possible. Prevalence of health hazards, environmental pollution, and climate change as a result of fossil fuels among other environment threats are encouraging economies to work towards becoming green. However, this is not a one time event; it takes some time to implementation and may even fail depending on the type of measures in place. Having a green economy also needs collaboration between governments and all stakeholders. It also involves regulating trade, developing green strategies, promoting education and training, investment, dialogue and social training as well as utilizing sustainable business models among others. Therefore, it is evidence that making an economy green, though possible demands absolute commitment from the nation as a whole. References Chung, R. K, & Lee, H. H 2005 “Towards environmentally sustainable economic growth (green growth) in Asia and the Pacific”, Prepared for the State of the Environment in Asia and the Pacific. Giljum, S, Behrens, A, Hinterberger, F, Lutz, C, & Meyer, B 2008 “Modelling scenarios towards a sustainable use of natural resources in Europe”, Environmental Science & Policy, 11(3), pp.204-216. Green Economy Coalition, 2010 “Green, fair and productive: How the 2012 Rio Conference can move the world towards sustainability. Green Economy Coalition, 2011 “Green Economy: ‘Everyone’s talking about it’”, An analysis of the UNCSD Zero Draft text submissions. Green Economy Coalition, 2012 “The Green Economy Pocketbook: the case for action”, Retrieved on November 11, 2013 from http://www.greeneconomycoalition.org/sites/greeneconomycoalition.org/files/Green%20Economy%20Pocketbook;%20the%20case%20for%20action.pdf Gunderson, L 2012 “Plan for a Green Energy Economy: How a Rational Budget Can Free the United States from Oil, Pollution, and Energy Shortage. Houser, T 2009 “Green and Mean: Can the New US Economy be both Climate-Friendly and Competitive?”, In Peterson Institute for International Economics, Testimony before the Commission on Security and Cooperation in Europe, US Congress (Vol. 10, No. 03). Makower, J., & Pike, C 2009 “Strategies for the green economy: Opportunities and challenges in the new world of business”, columbus, OH: McGraw-Hill. Mendonça, M, & Sovacool, B. K 2009 “Powering the green economy: The feed-in tariff handbook”, Earthscan. Scarpa, J. P 2009 “A Growing green economy: Opportunities of tomorrow”, The Initiative. Read More