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OECD report shows economic growth not hampered by green policies

January 19, 2015

OECD report shows economic growth not hampered by green policies

The drive towards more sustainable, less-polluting economies does not result in lower productivity or reduced economic activity, a new study by the OECD has revealed. The study shows that while countries may initially experience a fall in economic growth as companies adapt to green regulations, what follows is generally a rebound period, with companies increasing productivity through enhancing innovation and taking advantage of new opportunities opened by the regulations.

Although more polluting companies have generally seen a downturn as a result of national efforts to combat climate change, the shortfall in production from these businesses has been picked up by companies with cleaner-business models, meaning the net effect has been minimal. The report stressed that to maintain or increase growth, green policies must be implemented in a manner that does not impede competition, or which presents an unreasonable “green administrative burden”.

Read more at ICLEI Europe.

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