A Global Analysis of Environmentally Sensitive Productivity Growth
Concerns about the impact of climate policy on “productivity” or “economic growth” have made countries hesitant to reduce CO2 emissions. Climate policy has different dimensions: economic, technological, and ecological. The economic dimension offers solutions in terms of price signals, and the technological dimension sees solutions in terms of appropriate technological development and adoption. The ecological dimension adopts a more holistic view of the human-nature relationship and calls for “green accounting” or “sustainable development.” This chapter tries to present an extension of the economic approach that includes aspects of technological development and adoption as well as green accounting.