Environmental Economics

The Economist - Shoots, Greens, and Leaves

http://www.economist.com/node/21556904

In practice, this means looking for investment-hungry projects that bring high returns in broad environmental and narrow commercial terms. These are more numerous than the trade-off view of growth would suggest. McKinsey, a business consultancy, drew a cost-curve (see chart 3) for projects to cut carbon emissions. Those at the bottom are cheap as well as good for the environment (though ensuring that the people who pay for the investment reap the benefits is not straightforward). The biggest gains are in things influenced by consumer choice: hybrid cars, energy-efficient light bulbs and fridges. The International Finance Corporation, the private-sector arm of the World Bank, reckons that a 1% increase in building costs can cut energy and water bills by 20%. Other examples include drought-resistant crops and “no-take zones” in overfished waters. Drought-resistant crops (including genetically modified ones) reduce the amount of water plants draw from the soil—an environmental plus—and are hardier, raising returns to farmers in bad years. “No-take zones” let fish stocks recover and have been found to boost the incomes of fishermen in the surrounding area.

At the other end of the spectrum—where the environmentally friendly action is costly—are carbon capture and storage and generating solar power. These are a reminder that, however much policies can redirect resources towards greener growth, they cannot magically transform everything into a win-win. Trade-offs remain. But at least green-growth accounting should make them more open and explicit.

INCLUSIVE GREEN GROWTH - The World Bank

http://siteresources.worldbank.org/EXTSDNET/Resources/Inclusive_Green_Growth_May_2012.pdf