Green Economy in Theoretical Dilemma

Abstract

The principle objective of this paper is to demonstrate how the green economy approach will work in the context of classical theories. Green economy is a new approach to achieve sustainable development. This concept, a way of putting a price on the use of natural resources previously considered ‘free’, is being pushed as the only to prevent future crisis. This approach is fully based on market and privatization which can find the best solution to protect the natural resources. Green economy; a market mechanism what can lead to the efficient use of natural resources and can achieve the economic, social and environmental sustainability. Neo-liberalism, free market environmentalism and eco-modernization theories are the main strength of this green economy approach where as these theories have been rooted from classical theories. Classical theorists like Adam smith, Ricardo belief is that the market as a mechanism for maximizing efficient resource use and well-being. On the other hand, Karl Marx’s eco-socialism generates the idea of exploitation in free market mechanism which can lead to an environmental crisis like the 1929 Wall Street crash or the great depression of the 1930s in the USA or the world crisis in 2008. From this theoretical perspective, green economy is in a conflict position between environmental sustainability and economic growth. Still green economy needs a through examination before this nature is going to bail outs.