From "Green Growth" to Sound Policies: An Overview*

The views expressed herein are those of the authors and do not necessarily reflect those of the Massachusetts Institute of Technology. a b s t r a c t a r t i c l e i n f o JEL classifications: Q43 Q48 Q56 Q58 Keywords: Green growth Green economy UNEP OECD " Green growth " is an attractive slogan with a variety of possible meanings. This essay critically examines several potential meanings of this slogan and provides a brief overview of some of the main implications of the other papers in this special issue. Taken together, these papers argue for the importance of careful analysis of energy/environmental policies, particularly ambitious ones claiming to offer huge benefits with little or no cost. " When I use a word, " Humpty Dumpty said, in a rather scornful tone, " it means just what I choose it to mean — neither more nor less. " Lewis Carroll, Through the Looking Glass 1. Introduction " Green Growth " is a wonderful slogan. After all, everyone agrees that being green is a good thing, and in the current Great Recession economic growth is even more desirable than usual. So " green growth, " which combines these two good things, sounds like a truly great thing. have all recently embraced green growth, as well as the related notion of " green economies ". But wonderful slogans don't necessarily lead to wonderful actions — or even sensible ones. It all depends what the words involved really mean — both to those who use them and to those who hear them. 2 Indeed, it is not just that green growth lacks a commonly accepted definition; rather, different groups often utilize the phrase to mean or imply different things. This essay briefly examines several possible meanings of " green growth " and, in the process, provides an overview of some of the main implications of the other papers in this special issue. Advocates of green growth naturally call on businesses – large businesses, mainly – to adopt " green policies. " While what makes a business policy " green " is usually not defined very precisely, the basic notion is that business should go beyond what is legally required to protect the environment and conserve natural resources. Often there is a particular focus on limiting energy use and greenhouse gas emissions, though " green " is often …