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What Can Be Learned from “Green Growth Diagnostics” for Greening the Growth Path of China? - Conceptional Issues and Industry Evidence

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  • Harald Sander

    (Professor of Economics and International Economics & Director of the Institute of Global Business and Society, Cologne University of Applied Sciences Professor of Economics at Maastricht School of Management)

Abstract

It is evident that China’s manufacturing‐based growth model increasingly contradicts local, regional and global environmental imperatives. It is therefore of high importance to identify cost‐efficient strategies for greening the growth path of China. On 25 May 2011 the OECD has launched a “Green Growth Strategy” and proposed a “Green Growth Diagnostics” approach to identify the binding constraints on green growth. This paper discusses the usefulness of this approach for identifying the binding constraints to green growth in general as well as for the special case of China. It is argued that the approach is best applied at the industry level after some adjustments to identify binding constraints to the ‘greening’ of certain industries. The workings of the approach are illustrated for the case of the Chinese energy sector.

Suggested Citation

  • Harald Sander, 2011. "What Can Be Learned from “Green Growth Diagnostics” for Greening the Growth Path of China? - Conceptional Issues and Industry Evidence," Working Papers 2011/23, Maastricht School of Management.
    • Handle: RePEc:msm:wpaper:2011/23
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    File URL: http://web2.msm.nl/RePEc/msm/wpaper/MSM-WP2011-23.pdf
    File Function: First version, 2011
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    References listed on IDEAS

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    1. Philippe Aghion & Jing Cai & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2022. "Industrial Policy and Competition," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 15, pages 349-380, World Scientific Publishing Co. Pte. Ltd..
    2. Nicholas Z. Muller & Robert Mendelsohn & William Nordhaus, 2011. "Environmental Accounting for Pollution in the United States Economy," American Economic Review, American Economic Association, vol. 101(5), pages 1649-1675, August.
    3. Ballet, Jérôme & Bazin, Damien & Dubois, Jean-Luc & Mahieu, François-Régis, 2011. "A note on sustainability economics and the capability approach," Ecological Economics, Elsevier, vol. 70(11), pages 1831-1834, September.
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    Cited by:

    1. Jan Engelmann & Mohammad Al-Saidi & Johannes Hamhaber, 2019. "Concretizing Green Growth and Sustainable Business Models in the Water Sector of Jordan," Resources, MDPI, vol. 8(2), pages 1-20, May.

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    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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