Funding for green growth

Daniel Fuentes Castro

Working papers from Banque de France

Abstract: Welfare economics shows how innovation and cost control are necessary to correct the negative externalities of production and consumption patterns to ensure a path of sustainable growth. When welfare economics describes the fundamentals of green growth, with innovation as a cornerstone for the management of externalities, it does not confront the financial aspects of the problem. However, the transformation of the economy towards more environmentally friendly practices requires significant investments, and their financing is likely to constitute, in practice, a bottleneck. Thus, it is not excluded that economically beneficial investments that would be capable of generating growth do not emerge because of a lack of funding. This study reviews the main findings of the literature in this regard and shows the different types of actions that may be considered by public authorities to remove this obstacle. In France, public support for green growth occurs through two main sets of measures. On the one hand, the investments related to the implementation of the Grenelle Environment Forum and, secondly, through some programs included in the "Investing for the Future" program. This study examines, also, the two annual reports on the Environment commitments that have been submitted to Parliament in 2009 and 2010 and the work done to date to assess its impact on growth. Regarding the "Investing for the Future" program, the study analyzes the investment programs by institution in charge, the timing of commitments and the private sector participation.

Keywords: Green Growth; Externalities; Sustainable Development; Grenelle Environment Forum; Investing for the Future; Accounts for the Environment. (search for similar items in EconPapers)
JEL-codes: Q01 Q58 (search for similar items in EconPapers)
Pages: 93 pages
Date: 2012
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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