engleski

The perspective of Green GDP in growth modelling

Many are of thought that as income increases, countries will lean towards more sustainable technological solutions, i.e. become more environmentally conscious, hence, achieve economic progress that takes due account of natural resource and environmental degradation. Meaning that sustainable development can really co-exist with current economic patterns of growth. The practical curiosity therefore leads us to a question ; can the Green GDP concept endorse an apparently virtuous model of growth so that economic development can go hand in hand with greater improvement in physical, human as well as natural capital, having in mind at the same time the dynamic globalisation process of economic dependence? This paper evaluates the possibility of the usage of Green GDP measure in growth modelling, as to bridge down the evoked differences between the standard and new green concepts of GDP. The goal is to re-examine growth modelling by replacing standard GDP indicator with the Green GDP measure and re-evaluating some conventional economic factors of growth. Empirical analysis is based on panel cointegration analysis for the set of 44 countries, mostly developed and developing ones. Results are consistent with general features of standard growth models with the dual characteristic of the relationship between economic openness and green growth.

Green GDP ; growth model ; openness ; panel cointegration

This paper is a result of scientific – research project “Accounting for the Future, Big Data and Economic Measurement” supported by the Faculty of Economics and Tourism „Dr. Mijo Mirković“, Juraj Dobrila University of Pula. Any opinions, findings, and conclusions or recommendations expressed in this paper are those of the author and do not necessarily reflect the views of the Faculty of Economics and Tourism „Dr. Mijo Mirković“ Pula.