Strategic Transformational Transition of Green Economy, Green Growth and Sustainable Development: An Institutional Approach

Strategic Transformational Transition of Green Economy, Green Growth and Sustainable Development: An Institutional Approach

José G. Vargas-Hernández (University Center for Economic and Managerial Sciences, University of Guadalajara, Mexico)
DOI: 10.4018/IJESGT.2020010103

Abstract

This article analyzes a strategic transformational transition of the green economy, green growth, and sustainable development from the institutional perspective. The analysis begins by questioning the implications of the concepts and principles of green economy, green growth and sustainable development from different perspectives in the transformational transition considering the investment, trade, and capacity building though the design and implementation of strategies and policies as well as measures from an institutional analysis. The methodology followed was the analytical review of the literature to derive inferences, challenges, proposals and conclusions. It is concluded that the green economy concept addresses current challenges delivering economic development opportunities and multiple benefits for the welfare of all human beings.
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Evolution Of The Concept Of Green Economy

The concept of green economy has emerged in the last decade as a policy framework for sustainable development and poverty eradication. The concept of green economy was coined and used in 1989 in the report Blueprint for a green economy (Pearce, Markandya, and Barbier, 1989) commissioned to advice on the applications, projects, policies and measures of sustainable development.

On the midst of the economic crisis in 2008, green economy was presented as a means to reduce the growing social inequality and achieving sustainable development. The concept of green economy rises in the aftermath of 2008 global financial crisis challenging a radical transformation of development practices (Davies, 2013, 1285). The concept of green economy was initially a response to the financial crisis (Bina and La Camera, 2011), and an operational policy for growth based on sustainable development at the environment– economy nexus (Schmalensee, 2012).

After the financial crisis of 2008, green stimulus programs were launched as an incentive for investments in green energy sources and technologies. The global recession has led to design green energy sources. The United Nations Environmental Programme (UNEP) launched the green economy initiative in climate change mitigation. Green economy aims to improve human well-being and social equity while significantly reducing environmental risks and ecological scarcity according to the concept of The United Nations Environmental Programme (UNEP).

In 2009, the Global Green New Deal was proposed as a strategy to revive the global economy, mitigate climate change and environmental degradation and reduce poverty. The objective UNEP’s GE Initiative (GEI) was to provide policy support for investing in greening sectors and environment. Green economy delivers transformations for more egalitarian and inclusive societies and shared economic prosperity.

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