Green Growth Indicators 2014

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The OECD Green Growth Strategy supports countries in fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which well-being relies. Policies that promote green growth need to be founded on a good understanding of the determinants of green growth and need to be supported with appropriate indicators to monitor progress and gauge results.

This book updates the 2011 Towards Green Growth: Monitoring progress. It presents the OECD framework for monitoring progress towards green growth and a selection of updated indicators that illustrate the progress that OECD countries have made since the 1990s.

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Economic opportunities and policy responses

Governments play a key role in fostering green growth by creating conditions that stimulate greener production and consumption through economic and other instruments, by encouraging co-operation and sharing of good practices among enterprises, by developing and promoting use of new technology and innovation, and by increasing policy coherence. The main challenge is to harness environmental protection as a source of growth, international competitiveness, trade and jobs. Businesses have an important role in adopting greener management approaches and new business models, developing and using new technologies, carrying out research and development (R and D) and spurring innovation. Business, government and civil society also contribute by giving consumers with the information needed to make purchasing choices that reduce the environmental impact of consumption. The main issues of importance to green growth dealt with in this section are: ?? Technology and innovation, which are important drivers of growth and productivity in general, and of green growth in particular. They are important for managing natural resources and raw materials and minimising the pollution burden. Innovation can spur new markets, contribute to job creation, support shifts towards new management methods and facilitate the adoption of co-operative approaches and the diffusion of knowledge. ?? Production of environmental goods and services, which are an important aspect of the economic opportunities that arise in a greener economy. ?? Investment and financing to facilitate uptake and dissemination of technology and knowledge, foster cross-country exchange of knowledge and contribute to meeting development and environmental objectives. ?? Prices, taxes and transfers, which provide important signals to producers and consumers. They serve as tools to internalise externalities and influence market participants to adopt more environment-friendly behaviour patterns. Ideally, indicators regarding economic instruments should be complemented by indicators on regulation. However, data availability and comparability of regulatory measures across countries hamper the construction of such indicators. The indicators here can also be complemented with indicators on international trade as a source of economic opportunities, including green growth opportunities. Since trade in green products is only a small part of this, however, no specific trade-related indicators are put forward here. General indicators on international trade and competitiveness can be found in the section on the socio-economic context.



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