"Green Stimulus," Economic Recovery, and Long-Term Sustainable Development

"Green Stimulus," Economic Recovery, and Long-Term Sustainable Development

This paper discusses short-run and long-run effects of "green stimulus" efforts, and compares these effects with "non-green" fiscal stimuli. Green stimulus is defined here as short-run fiscal stimuli that also serve a "gree...

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Bibliographic Details
Main Authors:	Strand, Jon, Toman, Michael
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ABSORPTION ACCESS TO ELECTRICITY AGGREGATE DEMAND AIR AIR POLLUTION ALTERNATIVE POLICIES AVAILABILITY BALANCE BARRIERS TO ENERGY EFFICIENCY BIO-ENERGY BIODIVERSITY CONSERVATION BIOLOGICAL CARBON SEQUESTRATION BIOLOGICAL SPECIES BIOMASS BIOMASS PROCESSING BIOMASS PRODUCTION BOTTOM LINE CAPITAL COST CAPITAL SERVICES CARBON CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON EMISSION CARBON EMISSIONS CARBON SEQUESTRATION CHANGES IN PRICES CLEAN ENERGY CLEAN ENERGY INDUSTRY CLEAN WATER CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE POLICY CO CO2 COAL CONSUMPTION PATTERNS CONVENTIONAL ENERGY COST EFFECTIVENESS COST OF ENERGY COST SAVINGS DEBT DEBT BURDEN DEFORESTATION DEMAND MANAGEMENT DEVELOPED COUNTRIES ECONOMIC ACTIVITY ECONOMIC BENEFITS ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC RECOVERY ECONOMIC RESILIENCE ECONOMIC RESILIENCE TO CLIMATE CHANGE ECONOMIC SUSTAINABILITY ECONOMIC THEORY ECONOMIC VALUE ECONOMICS ECONOMIES OF SCALE EFFECTIVE DEMAND ELECTRIC POWER ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY PRODUCTION EMISSION EMISSION GROWTH EMISSION REDUCTION EMISSIONS REDUCTION EMISSIONS REDUCTIONS EMPIRICAL EVIDENCE ENERGY CONSERVATION ENERGY CONSUMPTION ENERGY COSTS ENERGY DEMAND ENERGY EFFICIENCY ENERGY EFFICIENCY IMPROVEMENTS ENERGY EFFICIENCY INVESTMENTS ENERGY EFFICIENCY MEASURES ENERGY EXPENDITURE ENERGY OUTLOOK ENERGY PRICE ENERGY SECURITY ENERGY SOURCES ENERGY SUBSIDIES ENERGY SUPPLY ENERGY USE ENVIRONMENTAL ENVIRONMENTAL BENEFITS ENVIRONMENTAL CLEANUP ENVIRONMENTAL IMPACTS ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION ENVIRONMENTAL QUALITY ENVIRONMENTAL REGULATION ENVIRONMENTAL TAXES EXPENDITURES EXPLOITATION EXTERNALITIES FEASIBILITY FINANCIAL SUPPORT FISCAL POLICIES FOREST FOREST COVER FOREST EXTRACTION FOREST RESTORATION FORESTRY FORESTS FOSSIL FOSSIL ENERGY FOSSIL FUELS FUEL FUEL CONSUMPTION FUEL PRICES FUEL USE GASES GHG GHGS GLOBAL RECESSION GOVERNMENT EXPENDITURES GREEN ENERGY GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS MITIGATION GRID EXPANSION HEAT HIGHER ENERGY PRICES HYDRO POWER HYDROPOWER IMPACTS ON EMISSIONS IMPORTS IMPROVING ENERGY EFFICIENCY INCOME INDUSTRIAL POLLUTION INFRASTRUCTURE INVESTMENT JOBS LABOR COSTS LABOR FORCE LABOR PRODUCTIVITY LAND USE LANDFILL LEVELS OF EMISSIONS LOGGING LOW-CARBON MARKET BARRIERS MARKET FAILURES MARKET PRICES METHANE METHANE EMISSIONS MOTOR FUEL NATURAL RESOURCES NEGATIVE IMPACTS OIL POLICY ENVIRONMENT POLICY INSTRUMENTS POLITICAL ECONOMY POLLUTION POLLUTION CONTROL POLLUTION CONTROL SYSTEM POLLUTION REDUCTION POWER POWER GENERATION POWER GRID POWER GRIDS POWER PLANTS POWER PRODUCERS PP PRODUCERS PRODUCTION COSTS PRODUCTION OF ELECTRICITY PRODUCTION PROCESSES PUBLIC EXPENDITURES R&D FUNDING RAIN RECYCLING RENEWABLE ELECTRICITY RENEWABLE ENERGIES RENEWABLE ENERGY RENEWABLE ENERGY POLICY RENEWABLE ENERGY PRODUCTION RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY SOURCE RENEWABLE ENERGY SOURCES RENEWABLE PRODUCTION RENEWABLE RESOURCES RENEWABLE TECHNOLOGIES RESOURCE ALLOCATION RESOURCE MANAGEMENT RURAL ELECTRIFICATION SHADOW PRICES SOLAR ELECTRICITY SPILLOVER EFFECTS SUBSISTENCE FARMERS SUBSTITUTION SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY SUSTAINABLE WATER TARIFF STRUCTURE TAX CREDIT TAX INCENTIVES TERMS OF TRADE THERMAL EFFICIENCY TIMBER TIMBER PRICES TRADEOFFS TRANSPORT SECTOR TURBINE MANUFACTURERS UNEMPLOYMENT UNEP UTILITIES VEHICLES WAGE RATES WASTE MANAGEMENT WATER TREATMENT WIND WIND ENERGY WIND POWER WIND SECTOR WIND TURBINE
Online Access:	http://documents.worldbank.org/curated/en/2010/01/11598837/green-stimulus-economic-recovery-long-term-sustainable-development http://hdl.handle.net/10986/19956

Description
Summary:	This paper discusses short-run and long-run effects of "green stimulus" efforts, and compares these effects with "non-green" fiscal stimuli. Green stimulus is defined here as short-run fiscal stimuli that also serve a "green" or environmental purpose in a situation of "crisis" characterized by temporary under-employment. A number of recently enacted national stimulus packages contain sizeable "green" components. The authors categorize effects according to their a) short-run employment effects, b) long-run growth effects, c) effects on carbon emissions, and d) "co-benefit" effects (on the environment, natural resources, and for other externalities). The most beneficial "green" programs in times of crisis are those that can stimulate employment in the short run, and lead to large "learning curve" effects via lower production costs in the longer term. The overall assessment is that most "green stimulus" programs that have large short-run employment and environmental effects are likely to have less significant positive effects for long-run growth, and vice versa, implying a trade-off in many cases between short-run and long-run impacts. There are also trade-offs for employment generation in that programs that yield larger (smaller) employment effects tend to lead to more employment gains for largely lower-skilled (higher-skilled) workers, so that the long-term growth effects are relatively small (large). Ultimately, the results reinforce the point that different instruments are needed for addressing different problems.

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