Balancing Sustainability and the Green Economy

Sustainability & Green Economy

By Dr. Tanusree Chakravaty Mukherjee and Madam Khin Than Myint

In the pursuit of sustainable development, the concept of the green economy has emerged as a promising approach, offering hope for a future where economic growth and environmental stewardship can coexist. It seeks to harmonise these two seemingly conflicting goals, ensuring natural resources are used efficiently and responsibly. However, the effectiveness of the green economy in achieving genuine sustainability hinges on how it aligns with the principles of strong and weak sustainability.

Therefore, in this context, we need to comprehend the concept of a green economy, which entails transitioning to an economic model based on sustainable and balanced production, exchange, consumption, and equitable sharing of economic and social benefits, with particular consideration for the natural environment.

Green growth involves maximising the potential of green activities, and sectors can serve as powerful catalysts for economic growth. Similarly, in addressing the climate, significant emphasis is placed on enhancing climate resilience by reducing fossil fuel consumption and greenhouse gas emissions associated with low-carbon development.

Researchers have indicated that the green economy can be assessed through three perspectives: conceptual-theoretical, application-implementation, and measurement of its implementation outcomes. The theoretical-conceptual perspective is paramount in shaping strategies, establishing policies, and devising programmes.

The concept of the green economy involves a range of interconnected and important elements aimed at promoting environmental sustainability and economic growth. These elements include tackling environmental threats, preserving natural resources, promoting social inclusion, and ensuring economic efficiency.

Key investments in reducing harmful emissions, encouraging pro-ecological behaviour, and fostering economic activities that prioritise efficiency and growth are essential for putting this concept into action. The green economy is intricately tied to the idea of green growth, which seeks to build climate resilience and promote sustainable development.

Natural Capital Theory provides a theoretical underpinning for understanding the interplay between the green economy and sustainability. It views natural resources and ecosystems as forms of capital that provide essential services to the economy and society. The theory emphasises the economic value of these natural assets and the importance of maintaining them for future generations.

Subsequently, the green economy is defined by its focus on reducing environmental risks and ecological scarcities while promoting sustainable development. It advocates for investments in green technologies, renewable energy, and sustainable practices that not only spur economic growth but also mitigate environmental harm. The core idea is to create a circular economy where waste is minimised and resources are reused, thereby reducing the ecological footprint of economic activities.

However, the relationship between sustainability and the green economy is complex. It can either support weak sustainability, which allows for the substitution of natural capital with human-made capital, or strong sustainability, which emphasises the preservation of natural capital as irreplaceable.

Weak sustainability is based on the premise that different forms of capital – natural, human-made, and social – can be substituted for one another. For instance, the depletion of natural resources can be offset by technological innovations that enhance efficiency or create new resources. In this view, as long as the overall stock of capital is maintained or increased, sustainability is achieved.

The green economy often aligns with weak sustainability when it emphasises technological advancements and economic incentives that drive growth while reducing environmental impact. Natural Capital Theory suggests that natural capital can be depleted as long as other forms of capital are increased to compensate. For example, deforestation might be justified if the economic benefits outweigh the loss of forested land. However, this approach risks undervaluing the irreplaceable services provided by natural ecosystems.

In contrast, strong sustainability argues that natural capital is unique and cannot be replaced by human-made capital. Certain natural assets, such as biodiversity, clean air, and stable ecosystems, are seen as critical to the survival of life on Earth and must be preserved intact.

The green economy supports strong sustainability when it advocates for conservation, ecosystem protection, and the maintenance of natural capital. Natural Capital Theory argues that natural capital is non-substitutable and must be preserved. The green economy, when aligned with this view, focuses on protecting natural resources, reducing consumption, and fostering ecological resilience.

At the end of the day, the green economy is a big deal when it comes to making sure we are developing sustainably. But whether it is actually helping the environment depends on whether or not it follows the idea of strong sustainability. Natural capital theory is a useful way of looking at this because it shows us how important it is to protect our natural resources for the long-term health of both the economy and the environment.

To truly achieve a harmonious relationship between sustainability and the green economy, it is essential to prioritise strong sustainability and ensure the conservation of these natural resources for the benefit of future generations. The effective implementation of green management concepts goes beyond rhetoric; it demands tangible investments and robust educational support. It is imperative to conduct comprehensive scientific research to grasp the current implementation status and identify viable green management models. This is a pivotal step towards realizing sustainable socio-economic development.

Dr. Tanusree Chakravarty Mukherjee is a lecturer in the Accounting, Finance and Economics Department at the Faculty of Business, Curtin University Malaysia and she leads ‘Green Economy Roadmap and Sustainable Future’ research cluster of the Faculty of Business. Her research interests lie in Applied Economics, Micro and Macroeconomics. She is a Fellow of the Advanced Higher Education Academy (UK), and has received funding from the Malaysian Ministry of Higher Education and Curtin University Malaysia for her research projects. In addition, she has authored numerous book chapters, journal articles and conference proceedings. Dr. Tanusree can be contacted by email at tanusree@curtin.edu.my.

Madam Khin Than Myint is a lecturer in the Accounting, Finance, and Economics Department at the Faculty of Business, Curtin University Malaysia. She is a Fellow of the Advanced Higher Education Academy UK (Advance HE) and has more than 35 years of teaching experience in higher education. She has authored and co-authored a number of journal articles and published papers in various peer-reviewed journals and conference proceedings. She is also a member of the ‘Green Economy Roadmap and Sustainable Future’ research cluster and can be contacted by email at k.t.myint@curtin.edu.my.