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Greening the Post-pandemic Recovery in the G20
1Department of Economics, Colorado State University, Fort Collins, CO 80523-1771 USA.
Environmental & Resource Economics
|August 25, 2020
Summary
G20 economies must prioritize a green transition post-COVID-19, learning from past recessions. Long-term public investment and carbon pricing are crucial for a sustainable, low-carbon future.
Area of Science:
- Environmental Economics
- Sustainable Development
- Climate Policy
Background:
- Post-COVID-19 economic recovery necessitates a shift from 'brown' to green economies.
- Reviving the fossil fuel-based economy risks irreversible climate change and environmental damage.
- Lessons from the 2008-2009 Great Recession's green recovery efforts in the US and South Korea offer valuable insights.
Purpose of the Study:
- To analyze effective policies for a sustainable green economic transition in G20 nations.
- To identify key strategies for rebuilding economies while mitigating climate change.
- To inform future economic recovery plans with lessons from past green initiatives.
Main Methods:
- Comparative case study analysis of green recovery policies in the United States and South Korea during the 2008-2009 Great Recession.
- Examination of the role of public spending and pricing reforms in economic recovery and environmental transition.
- Assessment of long-term policy commitments versus short-term fiscal stimulus.
Main Results:
- Sustained economic recovery requires more than short-term stimulus, emphasizing long-term public spending (5-10 years) and pricing reforms.
- Key public spending priorities include green innovation, infrastructure, smart grids, sustainable transport, and cities.
- Carbon and pollution pricing, alongside fossil fuel subsidy removal, accelerates the green transition and funds necessary investments.
Conclusions:
- A green economic transition is essential for G20 economies to avoid exacerbating climate change.
- Long-term public investment in green infrastructure and innovation, coupled with carbon pricing, is vital for a sustainable recovery.
- Learning from past green recovery efforts can optimize future economic rebuilding strategies.
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