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The vision of the green economy in Latin America and the Caribbean SP/Di No 01-12 TABLE II: OECD’s policy recommendations to achieve green growth Policies to address the limitations of green growth 17 Limitations of green growth Policy options Inadequate infrastructure - Public-private societies - Public sector investments - Tariffs - Transfers Low human and social capital and poor institutional quality - Reforms / Elimination of subsidies - Growth and stabilization of government income Incomplete property rights, subsidies - Review and reform or elimination Regulatory uncertainties - Setting objectives - Creation of independent systems of governance Externalities of information and divided incentives - Labelling - Voluntary approaches - Subsidies - Technology and performance standards Environmental externalities - Trade permits - Subsidies - Taxes Low returns on R&D Barriers to competition - Subsidies for R&D and fiscal incentives - Focus on general purpose technologies - Regulation of reform - Reduction of government monopoly Network effects - Strengthening of industrial competition through networks - Subsidies or loan guarantees for new network projects Source: Towards green growth: A summary for policy makers, OECD, May 2011. The OECD stresses that sustainable development provides an important context for green growth. OECD’s Green Growth Strategy leverages the substantial body of analysis and policy effort that has emerged from the Earth Summit in Rio de Janeiro in 1992. It develops a clear and focused agenda for delivering on a number of Rio’s key aspirations. Green growth has not been conceived by the OECD as a replacement for sustainable development, but rather a subset of it. It is narrower in scope, entailing an operational policy agenda that can help achieve concrete, measurable progress at the interface of the economy and the environment. It provides a strong focus on fostering the necessary conditions for innovation, investment and competition that can give rise to new sources of economic growth, consistent with resilient ecosystems. Green growth strategies need to pay specific attention to many of the social issues and equity concerns that can arise as a direct result of greening the economy – both at thePDF Image | green economy In Latin America and the Caribbean
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