The Green New Deal: economic analysis and practical policy

The concept of a “Green New Deal” (GND) has significant foundations in ecological and Post Keynesian theory. This approach delinks traditional economic growth, based on fossil energy and resource input-intensive techniques, from employment creation and expanded well-being. Significant aspects of the GND have recently been adopted in the U.S. and Europe. A major goal of GND policies is a low- or net zero-carbon economy, including transformation of energy systems, industry, transportation, and construction, as well as appropriate management of forests, wetlands, and soils. A major focus is infrastructure investment in energy transmission, transportation, water, sewage, and waste management. GND policies have already begun to yield benefits in terms of job growth, real disposable income, inflation reduction, targeted sectoral energy costs, and greenhouse gas emissions reduction. GND policies also promote adaptation to ecological limits to growth, including energy use, water, land, forests, fisheries, and other ecosystems.