Elsevier, International Economics, Volume 134, August 2013
The economic crises seems blinding the governments and major economic actors toward environmental troubles. Nevertheless, the impacts of population growth and economic expansion have now the potential to disrupt important regulatory functions of global ecological systems. Green growth involves transforming the production and consumption processes in order to maintain or restore these regulatory functions of the planet's natural capital. It requires that environmental facto rs be treated as an essential factor of production and not merely an externality. In practice, this transition depends on advances being made in four areas: widening the concept of efficiency; energy transitions; inclusion of the value of natural capital in economic life; and a revision of the scale of risks within the financial system whose innovations for allocating resources at low cost to green growth would be greatly facilitated by effective pricing of environmental pollution. © 2013 CEPII (Centre d' Etudes Prospectives et d' Informations Internationales), a center for research and expertise on the world economy.