12 Example B: Green Economy

A green economy aims to achieve economic growth and development while preserving the environment, reducing resource use, and fostering social equity. It represents a shift from traditional economic models by prioritizing sustainability and long-term ecological health. Central to this model is the principle of decoupling economic growth from environmental degradation, achieved by transitioning to renewable energy, sustainable agriculture, and eco-friendly technologies.

Characteristics of the Current Economy

The prevailing economic model prioritizes short-term growth and consumption, often at the expense of environmental and social well-being. Key features include:

• Fossil Fuel Dependence: Industrial and energy sectors rely heavily on coal, oil, and gas, contributing to greenhouse gas emissions and air pollution.
• Resource Overconsumption: Unsustainable extraction of minerals, water, and timber depletes natural resources and disrupts ecosystems.
• Social Inequality: Economic benefits are often concentrated among elites, leaving marginalized communities disproportionately affected by environmental and economic crises.
  • For example:

• • • Global CO₂ emissions reached 36.3 billion tons in 2021, driven by energy consumption.
    • According to the World Bank, 9.2% of the global population lives in extreme poverty, exacerbated by environmental degradation and resource scarcity.

Green Economy in Practice

The green economy redefines progress by integrating environmental sustainability into economic policies and practices. Key elements include:

1. Renewable Energy Transition:
   • Wind, solar, and hydroelectric power replace fossil fuels, reducing carbon emissions and air pollution.
   • Advances in battery storage and smart grids improve energy efficiency.
2. Sustainable Agriculture:
   • Practices like agroecology and precision farming reduce water and pesticide use while enhancing biodiversity.
   • Organic farming minimizes chemical inputs, preserving soil health and ecosystem stability.
3. Eco-Friendly Technologies:
   • Green technologies, such as electric vehicles and energy-efficient buildings, reduce environmental impacts.
   • Circular systems in manufacturing design products for longevity, repairability, and recyclability.

Case Study: Costa Rica’s Green Economy

Costa Rica is widely regarded as a leader in implementing a green economy, demonstrating how sustainability can coexist with economic growth.

1. Renewable Energy Leadership:
   • Over 99% of Costa Rica’s electricity is generated from renewable sources, including hydroelectric, wind, solar, and geothermal energy.
   • Investment in renewable energy infrastructure has reduced the country’s dependence on imported fossil fuels.
2. Conservation and Ecosystem Services:
   • Payments for Ecosystem Services (PES): Landowners receive compensation for activities like reforestation and watershed protection, incentivizing sustainable land use.
   • Protected areas cover 25% of Costa Rica’s land, preserving biodiversity and promoting ecotourism.
3. Sustainable Tourism:
   • Ecotourism contributes to 13% of GDP, emphasizing conservation and community involvement.
   • Popular destinations, like Monteverde Cloud Forest and Corcovado National Park, balance tourism with environmental protection.
4. Decoupling Growth from Emissions:
   • Costa Rica’s economy has grown consistently while maintaining one of the lowest per-capita carbon footprints in the world.

Comparison to Current Models

• Unlike fossil-fuel-dependent nations, Costa Rica’s green economy reduces vulnerability to price fluctuations and environmental risks.
• Conservation policies ensure that economic growth does not lead to resource depletion or biodiversity loss.

Challenges and Opportunities

Challenges:

1. Economic Costs: Transitioning to renewable energy and sustainable practices requires significant initial investment.
2. Policy Enforcement: Ensuring compliance with green policies, especially in rural or industrial areas, can be difficult.
3. Global Trade: Competing in global markets where unsustainable practices remain dominant can disadvantage green economies.

Opportunities:

1. Job Creation: Renewable energy, green construction, and sustainable agriculture create employment opportunities.
2. Climate Resilience: Green economies are less vulnerable to the impacts of climate change, such as extreme weather and resource scarcity.
3. Global Leadership: Countries embracing green economies set benchmarks for sustainable development, inspiring global change.

Global Comparisons

Costa Rica’s model demonstrates the potential of the green economy, but other nations provide additional insights:

• Germany:
  • The Energiewende initiative transitions Germany to renewable energy, aiming for 80% renewables by 2050.
  • Investments in wind and solar power have made Germany a global leader in green technology exports.
• South Korea:
  • The Green New Deal includes investments in renewable energy, electric vehicles, and green building retrofits, creating jobs and reducing emissions.
• Bhutan:
  • The country measures success using Gross National Happiness (GNH) instead of GDP, prioritizing environmental conservation and well-being.

Lessons Learned

1. Policy Integration: Successful green economies rely on comprehensive policies that align economic, environmental, and social goals.
2. Public Engagement: Citizens must understand and support green initiatives, as demonstrated by Costa Rica’s ecotourism and conservation efforts.
3. Innovation and Investment: Advancements in green technologies and sustainable practices drive economic growth while reducing environmental impacts.