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Economic Growth And Environment Analysis

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The New Approach to balance Economic Growth and Environmental Aspect
As mention in the above section, Indonesia faces some challenges related to the negative impacts of development to the environment. Government then recognized that it is important to integrate environmental aspect into its development planning and goals. In Indonesia, government introduced green growth framework to create a balance between economic development and environmental aspect. As a subset of green economy, green growth presents an approach to achieve true sustainable development: reduce greenhouse gas emission, create resilience to climate change, increase equity in GDP and wellbeing, create green job opportunity and value the natural resources which have underpinned …show more content…
First, resource productivity is an opportunity to reduce environmental degradation, for instance energy efficiency. This strategy can provide ecological advantage since resource is consumed in every stage of production and also related with energy, water and land consumption. Resource base efficiency can give benefit not only in the cost effectiveness but also in pollution reduction. Second reason is the benefit from investment refinancing. Although there is an increase in the investment rate, but the advantages obtained from the ecological modernization, development and preservation of natural capital is greater than the increase in investment cost. The next reason comes from the fact that green growth forces innovation in environmental protection and also generates potential for universal and future demand. Studies have shown that innovative responses can reduce the actual cost of production when compared to traditional system. Fourth, there is a dynamic of markets for environmental and resource preserving technologies. High demand for green technologies and climate friendly technologies makes green growth becomes popular. The last reason is that technological transformation is needed to anticipate growth-damaging development. It is assumed that there is economic stagnation and even a negative growth trend in the future. Here, green growth has an important role as solution to overcome this

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