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Theoretical and Applied Economics
No. 10 / 2012 (575)

Transition to a green economy – a challenge and a solution for the world economy in multiple crisis context

Alina-Mihaela BABONEA
The Bucharest University of Economic Studies
Radu-Marcel JOIA
The Bucharest University of Economic Studies

Abstract. The concept of "Green Economy" is heavily debated recently because it is considered to be essential for the future global economy. This concept aims to find practical solutions that can be applied in international affairs regarding the environment development as a result of the massive problems caused by multiple crises that are no longer solvable. However, the international community is looking for long-term alternatives to improve the quality of life and eliminate poverty population as much as possible.

To make sustainable economic development requires a transition with multiple implications for both the government and the private sector. In other words, you need a joint effort between public and private, in order to separate economic growth from excessive use of resources; the main objective should be considered the quality of life along with reducing the environmental and social deficit.

The transition to a "Green Economy" means practicing a certain type of economy based on policies and investment that should be able to create a connection between economic development, biodiversity, ecosystem, climate change, health and welfare on the medium and long term. These premises must be connected together to achieve sustainable development – which is considered the resumption of economic growth at global scale.

Switching to "Green Economy" implies a proper concern based on adequate knowledge, research and innovation in order to create a framework for promoting sustainable development on long term. This study aims to generate an overview on the concept of "Green Economy", considered by some experts as the main solution to the problems that countries of the world are facing nowadays. It is well known that the economic system is situated in a collapse and requires a rethinking from all points of view. A solution to adapt the economy and its development to these new global challenges can be the transition to "Green Economy", especially by integrating the environment in sustainable development paradigm.

Keywords: green economy; sustainable development; policies and investment; economic growth; poverdy eradication.

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